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Govt spikes RIL, HPCL ethanol-making plans (Business Stndard 9th Jan 2008) The government has put a spanner in the plans of oil companies like Reliance Industries Ltd (RIL) and Hindustan Petroleum Corporation Ltd (HPCL) to make ethanol directly from sugarcane, without producing sugar. Pollution control rules require these companies to spike diesel and petrol with five per cent ethanol. The government issued a notification on 28 December 2007 amending the Sugarcane (Control) Order, 1966 that, in effect, allows only sugar mills to produce ethanol from sugarcane. Both RIL and HPCL have bid for closed sugar mills in Bihar and planned to produce ethanol there for their own consumption. While HPCL has emerged as the highest bidder for three mills, RIL is leading the race for one. The move will benefit leading sugar companies like Bajaj Hindusthan, Renuka Sugars, Balrampur Chini and Triveni Engineering that have made huge investments in beefing up their ethanol production capacity. More

35% of fuel sales off price control (Business Standard 8th Jan 2008) Branded fuels help oil firms cut losses. At a time when the government is considering a “marginal” increase in petrol and diesel prices, about a third of fuel sales come under the category of premium branded fuels that are outside the price controls and for which consumers readily pay a premium. In 2007, branded fuels, which offer better mileage and superior engine performance, accounted for about a third of revenues from retail sales of petrol and diesel, as against about 23 per cent in 2006, and 12 to 13 per cent two years ago. Oil marketing companies sell high-performance petrol and diesel mixed with additives under brands like Xtra Premium (Indian Oil Corporation), Speed (Bharat Petroleum) and Power (Hindustan Petroleum). More

Oil PSUs plan big retail expansion (Business Standard 3rd Jan 2008) Indian Oil, Bharat Petroleum, Hindustan Petroleum to open over 3,000 outlets this year. Even losses of over Rs 300 crore per day from selling automobile fuels have not stopped government-owned oil marketing companies from expanding their retail network across the country. The three government-owned companies -- Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) -- are together planning to open over 3,000 retail outlets this financial year as against 2,000 outlets opened last year. In fact, over 1,600 outlets have already been commissioned in the current year. More