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Govt cuts excise, customs duty on LPG cylinders to zero

The Finance Ministry has announced a reduction in excise and customs duty on non-subsidised domestic LPG cylinders to zero, reports said.
Finance Minister, P Chidambaram urged more state governments to provide subsidy on LPG cylinders.

Last week, apart from a hike of Rs. 5 per litre on diesel, the government capped subsidised LPG cylinders to six a year. Later, it hiked the limit to nine for Congress-ruled states, adding that the additional cost of the subsidy will be borne by state governments.
The Finance Ministry also appreciated the Bihar Government's move to reduce Value Added Tax on diesel, reports said.

RIL seeks three-fold rise in KG--D6 gas price: reports

Reliance Industries has sought a three fold rise in KG--D6 gas price from April 1, 2014, according to reports.

Earlier, the company wrote to A Giridhar, Joint Secretary (Exploration) in the Ministry of Petroleum and Natural Gas on Sep 6 proposing to price natural gas it produces from the Krishna Godavari basin block in Bay of Bengal, report says.

Reports stated that the company wants to price KG--D6 gas at 12.67% of JCC, or Japan Customs--Cleared Crude, plus USD 0.26 per million British thermal unit.

RIL also reported that it needs to "achieve financial closure in order to undertake further development activities in the block.

Domestic News

HPCL plans petrochemical unit

Hindustan Petroleum Corporation Limited reportedly plans a petrochemical unit along with Barmer Refinery.

According to reports, the petrochemical project may cost Rs. 80bn.The feasibility report of the proposed plant will be submitted by November, sources said. The company also plans to set up 9 MT wellhead refinery at Barmer.

On 2 August, Vedanta Resources evinced interest in taking a stake in HPCL’s refinery in Rajasthan, after state-owned Oil India. Cash-rich OIL is keen to take up to 10-15 percent stake in refinery HPCL plans to build near the Barmer oil finds of Cairn India, reports added.

IFC may part-finance HMEL

International News

BNDES to boost oil, gas sector financing

BNDES reportedly to boost oil and gas sector to 10 billion reais in 2013 as this year demand for ships and equipment grows.

Rodrigo Bacellar,Deputy Managing Director and Superintendent for oil and gas,BNDES was quoted as saying that the trend will be for disbursements to rise further in future years as Brazil continues to develop its oil and gas industry.

BNDES' disbursements for the sector have risen from levels of BRL3.5 billion a year in 2010 and 2011, Bacellar added.