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Tag: fuel

  • Gas stations still unable to supply normal volumes

    Gas stations still unable to supply normal volumes

    Many gasoline stations in Ho Chi Minh City continue to face a shortage of stocks. In the last two days, a gas station in Thanh Xuan Ward in HCMC’s District 12 claimed to completely run out one time and had been rationing sales the rest of the time. Its employees said supply has been in small quantities at a time.

    Many gas stations on national road 1A in District 12 have put up signs saying they are out of fuel and re waiting for tankers to bring stocks.

    A number of stations in districts like Go Vap and 7 and Thu Duc City have also put up such signs frequently.

    Le Van My, general director of Hoc Mon Trading Joint Stock Company, which owns 11 gas stations and 21 retail agents in the city, said supply is low now.

    Each of the gas stations used to be allocated 5,000-10,000 liters a day, but are now getting only 1,000-2,000 liters, and sometimes as low as 700 liters.

    Tran Duy Dong, director of the Ministry of Industry and Trade’s domestic market department said: “This week and next week, key enterprises will receive bigger volumes of imports, making up for the reduced supply by Nghi Son Refinery. In around 10 days, market demand and supply will be balanced”.

    Nghi Son has been provided with short-term financing to resume operations, but crude oil has not arrived yet and so it is still operating at 55-60 percent of capacity, he revealed.

    On March 15, it will return to full capacity, he said.

    It will take major suppliers another 30-45 days to receive imported fuel.

    The Dung Quat Oil Refinery has increased its capacity from 103 percent to 105 percent since the Lunar New Year holiday in early February. The ministry wants it to operate at the maximum capacity possible.

    By Feb. 1, more than 205,000 cubic meters of imported gasoline and diesel had landed in Vietnamese ports.

    More are on the way. Petrolimex will get 180,000 cubic meters this month, PVOil, 66,000 cubic meters and Hong Duc, 80,000 cubic meters.

    Though Dong expects supply and demand to be balanced in the next 10 days, distributors expect the shortage to continue because it is still difficult for Vietnamese oil refineries to operate normally when the import of crude oil is slow and there is a global shortage due to the Ukraine crisis.

    In the domestic market, not only gas stations but also distributors and importers have suffered severe losses.

    My said his company racks up losses of several hundred million dong (VND100 million = $4,300) a day.

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  • Rising gasoline prices further burden pandemic-hit economy

    Rising gasoline prices further burden pandemic-hit economy

    Duy Anh of Hanoi’s Cau Giay District started off this week by hanging a notice outside his cafe saying the price of coffee had been hiked by 25 percent.

    “I know customers will not like it, but I do not have any choice,” he said, explaining that the cost of ingredients and their delivery has risen by 20 percent due to rising gasoline prices.

    Many transport companies have either announced or quietly increased prices by around 10 percent last week as the government hiked gasoline retail prices to mirror the increase in global prices. A Ho Chi Minh City transport firm, which asked not be identified, has raised container transport prices by 11 percent and now charges VND3.2 million ($141) for a trip to the neighboring province of Dong Nai.

    Tran Duc Nghia, CEO of Delta International, said the transporter is set to hike prices by around 5 percent soon. Gasoline prices in Vietnam are now at an eight-year high, having risen by 11 percent in the last two months. Following the latest adjustment last Friday, the popular RON 95 variety is now close to a record high price.

    Global crude prices have climbed to a seven-year high and Vietnam’s biggest refinery Nghi Son has been forced to reduce its production from 105 percent to 80 percent due to a cash crunch. Nguyen Bich Lam, former head of the General Statistics Office, estimates that a 10 percent increase in fuel prices causes GDP growth to drop by around 0.5 percentage points.

    Lender HSBC last week raised its inflation forecast for Vietnam from 2.7 percent to 3 percent after factoring in the higher energy prices. The Asian Development Bank pegged the figure at 3.8 percent. Transport companies are between a rock and a hard place since price hikes are hard to sell in an economy hit by Covid-19.

    Hai Van International Shipping in HCMC, which transports goods and passengers, has seen revenues fall by up to 70 percent year-on-year in recent weeks due to declining demand.

    “We plan to increase fares, but we have yet to do that as there might be a decline in number of passengers.”

    Another transport company, Minh Thanh Phat, said the higher fuel price is another blow that put many operators to the verge of bankruptcy amid low demand.

    “Continuing to operate will result in losses, while suspending operations means we cannot pay loan interest to banks”.

    Economist Ngo Tri Long urged the government to lower special consumption and environmental taxes on gasoline to reduce the pressure on the economy.

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  • Gas stations limit sales as supply shortage persists

    Gas stations limit sales as supply shortage persists

    Gas stations across the country are again complaining about supply shortages and losses due to surging prices, which are forcing them to limit sales. In the southern province of An Giang, some limited sales to VND30,000 ($1.32) per customer on Tuesday, forcing buyers to go to another station to fill the rest of their gas tank. Nine stations have closed down and it is confirmed they have run out of stocks, the province Market Surveillance Department said.

    In other southern localities like Binh Duong Province and Ho Chi Minh City too, some gas stations reported shortages.

    “Oil imports have fallen by 40-50 percent since before the price increase,” Do Thanh Han, CEO of Quoc Thang Ltd, which has eight gas stations in Binh Duong, said. He was referring to the 3.9-percent gasoline retail price hike the government affected last Friday. The CEO of a gasoline distribution company in HCMC said supply has fallen by 30 percent below normal.

    In Hanoi, Nguyen Van Tiu, CEO of Tu Luc Gas and Oil Co., said it has been very difficult to source supply in the last two days. With wholesalers increasing prices, his company’s commission has fallen from VND200 per liter to zero, he said. The increase last Friday was the fourth since December after a period of calm.

    The popular RON 95 gasoline is now at an eight-year high of VND25,320 per liter, having risen by 11 percent this year. The retail price surge has caused many gas stations to sell at a loss as they say wholesale price exceeds retail price and force them to have zero commission or less.

    Tran Thai Binh, owner of eight stations in the southern province of Dong Thap, said that the company has been losing nearly VND2 million a day for over a month due to falling commission.

    Some stations have closed down to avoid a bankruptcy.

    “We cannot hold on anymore”, said Hoang, owner of a gas station in the Central Highlands in his request to the Ministry of Industry and Trade for permission to stop selling for a week.

    Hoang has not been able to source inventory since last Friday.

    “If we continue to operate, we will go bankrupt”.

    Tran Duy Dong, head of the trade ministry’s domestic market agency, said that supply is low because the country’s biggest refinery Nghi Son is only operating at 55 percent of capacity.

    It is set to reach 80 percent by the end this month and 100 percent next month.

    Some consignments are arriving and the shortage will be eased in the next one or two weeks, he added.

    The reason stations report losses is because global rates increased during Vietnam’s Lunar New Year holiday Tet, which means authorities only raised prices up accordingly after, and by then stations have already been selling at a loss, Dong said.

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  • Petrolimex welcomes new director general

    Petrolimex welcomes new director general

    Deputy Director General of Vietnam National Petroleum Group (Petrolimex) Dao Nam Hai will become its director general (DG), starting Mar. 1.

    He replaces Pham Duc Thang who retired in November 2021. Holding two master degrees in law and business administration, Hai, 48, Hai was its deputy DG for four years, and 9-year DG of Petrolimex’s insurance subsidiary, Petrolimex Joint Stock Insurance Company (PJICO).

    Petrolimex has a charter capital of nearly VND13 trillion ($573 billion). In 2021, the group posted net revenue of over VND169 trillion, up 37 percent compared to 2020.

    Its 2021 post-tax profit was VND3.1 trillion, 2.5 times higher year-on-year.

    The state-owned Petrolimex has a nearly 40 percent share in Vietnam’s petroleum market, has 43 subsidiaries, with 5,000 gasoline stations nationwide.

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  • Gas shortages in few places in Vietnam

    Gas shortages in few places in Vietnam

    Gasoline shortages have been occurring only in a few southern locations and the country has adequate reserves to fully meet demand, the industry ministry has assured.

    Shortages are only reported by small distributors who want to hold on to their stocks to push prices up, Deputy Minister of Industry and Trade Do Thang Hai said at a meeting Tuesday.

    “We have reserves to ensure supply for 20 days of consumption as regulations require.”

    Major distributors (who account for over 90 percent of market share) have been selling routinely since before the Lunar New Year holidays (January 29-February 6), he said. Many gas stations in An Giang, Dong Nai and Hau Giang provinces closed down in recent days complaining of lack of supply.

    Some also stopped selling because rising prices are forcing them to sell at a loss. They are not allowed to increase retail prices on their own and authorities usually make price changes on the 1st, 11th or 21st of a month. But since February 1 was a holiday, the next price change is not likely until Friday.

    The country’s biggest refinery, Nghi Son in the central province of Thanh Hoa, had to cut down production from 105 percent of capacity to 80 percent last month due to a cash crunch. Vietnam produces around 75 percent of its fuel requirements, with Nghi Son accounting for 35 percent, and imports the rest.

    Phan Thi Thang, deputy chairwoman of the HCMC People’s Committee, said some gas stations in the city too had closed down temporarily due to lack of supply, but reopened, and as of Tuesday only two out of 548 were closed but for other reasons.

    Major distributors in the city have assured they have enough inventory to last 40-60 days, she said.

    The city has ordered all distributors to import more to ensure reserves that would meet at least 30 days of demand, she added.

    Deputy Prime Minister Le Van Thanh has instructed the trade ministry to be more proactive in regulating gas supply to ensure there are no shortages.

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  • Fuel distributors seek foreign supply amid refinery production trim

    Fuel distributors seek foreign supply amid refinery production trim

    Vietnamese fuel distributors are negotiating with foreign suppliers to ensure adequate inventory for the holiday after the country’s biggest refinery cease imports due to cash shortage.
    PVOil, the second-biggest fuel distributor in Vietnam behind Petrolimex, has secured a deal with a foreign supplier to import more gasoline amid the expected shortage.

    The supplier gave an acceptable price with reasonable delivery time, said Cao Hoai Duong, company chairman, without revealing details of the supplier and price.

    The fact that Nghi Son Oil Refinery has cut down its production from 105 percent to 80 percent due to insufficient funds is urging fuel distributors to scramble for solutions to have enough inventory for the upcoming nine-day Tet holiday, which begins Saturday.

    “The imports, together with our backup inventory, is enough for PVOil to cover the expected market shortage before, during and after Tet,” Duong said.

    An anonymous director of a central distributor said the company has finally been able to secure a deal with a supplier and will have enough inventory for the holiday.

    A media representative of leading distributor Petrolimex did not say whether it would import more as the company is still receiving the agreed amount of inventory from Nghi Son.

    “In whatever scenario we will strive to ensure there would be sufficient inventory to distribute to the market.”

    Nghi Son said that it had to cut production because state-owned energy giant Petrovietnam has not approved import contracts and therefore it has to cancel two crude oil imports this month.

    Therefore the factory might have to shut down in mid-February.

    However, Petrovietnam stated Wednesday that the factory canceled the two shipments and that it had nothing to do with the approval of import contracts.

    Matters concerning the contracts are part of Nghi Son’s restructuring plan, which is under negotiation, the statement read.

    Nghi Son Oil Refinery has a capacity of 200,000 crude oil barrels a day, or 10 million tons a year, twice that of Vietnam’s other refinery Dung Quat Oil Refinery in Quang Ngai Province.

    State-owned fuel company Petrovietnam has a 25.1 percent stake in the plant, while the rest are owned by three foreign firms: Kuwait Petroleum International (35.1 percent and Japanese companies Idemitsu Kosan (35.1 percent) and Mitsui Chemicals (4.7 percent).

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  • Kawasaki To Unveil Three New Electric Motorcycles In 2022

    Kawasaki To Unveil Three New Electric Motorcycles In 2022

    Kawasaki Motors President and CEO Hiroshi Ito have announced that the Japanese brand will introduce not one, but three new electric models in 2022. Addressing the assembled crowd at the EICMA 2021 show in Milan, Italy, Hiroshi Ito laid down a broad outline for Kawasaki’s immediate future plans, including alternative fuels, as well as new products. What is clear from the comments from EICMA 2021 quoted by several sources, is that Kawasaki intends to fully embrace a carbon-neutral society. And what is important is that Kawasaki seems to be almost ready with several new electric models.

    “I would like to share a new commitment with you now. Next year, in 2022, we will show a minimum of three electric vehicles globally. That is a promise,” said Hiroshi Ito, President and CEO, Kawasaki Motors.

    The news seems to be part of Kawasaki’s plans to introduce 10 electric and hybrid motorcycles by 2025. But what is also interesting is Kawasaki’s plans to evaluate other forms of cleaner transportation. In his address, the Kawasaki Motors President and CEO also made mention of the Japanese brand’s commitment to exploring other power sources, including hydrogen, hybrids, and eFuels.

    “In addition to electric vehicles, Kawasaki is looking at all options as we work towards achieving a carbon-neutral society. One example is a hydrogen engine. In Japan, all industries supported by the government are making great efforts to make hydrogen a practical domestic alternative are currently moving forward. The Kawasaki Group is taking on a key role in this project, leading the way in hydrogen production, transport, storage, and use.

    “And just recently, on November 13, Kawasaki Motors decided to take the first steps in developing a hydrogen-powered motorcycle engine with Yamaha. Of course, we will look at the possibilities of other alternative fuels, like biofuel and eFuels,” added Hiroshi Ito.

    The announcement is a clear indication that Kawasaki is serious about cleaner transportation and is leading the development and pursuit of alternative power sources. And it will be interesting to see what the three new electric products will be, but even more interesting will be the development of alternative fuels, including hydrogen power.

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  • Global hike pushes Vietnam fuel price to 7-year high

    Global hike pushes Vietnam fuel price to 7-year high

    Fuel prices in Vietnam have surged by over 52 percent to a seven-year high, with global rates shooting up as demand rises in economies reopening.

    The government has hiked fuel prices up by 40.23–52.59 percent this year with the latest increase Tuesday bringing the popular fuel RON 95 to VND24,330 ($1.07) per liter, the highest since September 2014.

    Global prices have also been rising. Brent futures rose 0.5 percent, to settle at $86.40 a barrel Tuesday, while U.S. West Texas Intermediate (WTI) crude ended 1.1 percent higher at $84.65.

    Those were the highest closing prices for both global benchmarks since October 2014.

    A global supply shortage and strong demand in the U.S., the world’s biggest consumer, is said to be the reason behind the increase.

    Gasoline and distillate consumption in the U.S. is back in line with five-year averages after more than a year of depressed demand.

    While China’s red-hot power and coal markets have cooled somewhat after government intervention, energy prices remain elevated worldwide as temperatures fall with the onset of the northern winter.

    Since last month, Vietnam has pushed up fuel prices four times, but the combined increase this year is still lower than that of global rates thanks to the fuel price stabilization fund, the Ministry of Industry and Trade and the Ministry of Finance said in a joint statement Tuesday.

    They noted that global rates have increased 59.08–76.03 percent this year.

    However, the price stabilization fund, set up to offset fluctuations in global fuel prices, is seeing shortages.

    As of Tuesday, state-owned fuel distributor Petrolimex had a negative VND262 billion balance in its stabilization fund. At state-owned PVOil, the negative balance was VND697 billion as of Oct. 11.

    By the end of August, 15 of 35 fuel companies in the country reported a combined negative balance of VND1.47 trillion.

    Together with the remaining sum from the other 20 companies, the total balance of the fund stands at VND600 billion now.

    Experts have said further price hikes in the future can deplete the balance. The fund’s balance had fallen to a negative VND620 billion in mid-2019.

    The high fuel prices have raised concerns of rising inflation.

    Ngo Bich Lam, former head of the General Statistics Office, said that a 10 percent increase in fuel prices will lower GDP by around 0.5 percent and pump up the Consumer Price Index (CPI), which measures inflation, by 0.36 percentage points.

    This shows the strong impact of fuel price fluctuations on the economy, he said.

    Some people have mentioned the possibility of lowering fuel tax to offset the increase. Tax and fees account for over 60 percent of fuel prices.

    At VND4,000 per liter or 16.4 percent of the current price, environmental tax is one of the biggest boosters of fuel prices.

    The Ministry of Industry and Trade and the Ministry of Finance are considering lowering fuel taxes, including environmental tax, to keep domestic prices stabile, Le Viet Nga, deputy head of the domestic markets under the trade ministry, had said at a press briefing last month.

    A fuel distributor in Hanoi who did not want to be named said that the government could lower taxes for biofuel E5 RON 92 by VND1,000 per liter from the current VND3,800.

    This 26 percent discount will reduce the impacts of the price hike on businesses and citizens at a time the economy is only beginning to recover, he said, adding that it would also boost consumption of biofuel, which is cheaper than RON 95.

    Vietnam imported $2.93 billion worth of fuel in the first nine months, up 15.3 percent year-on-year, according to Vietnam Customs.

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  • India’s September Diesel Sales Remain Below Pre-COVID Levels

    India’s September Diesel Sales Remain Below Pre-COVID Levels

    India’s diesel consumption slowed in the first half of September from the previous month, staying below pre-COVID levels as a pick-up in monsoon rains hit mobility and demand for fuel from the agriculture sector, preliminary sales data showed.

    Diesel sales by the country’s state fuel retailers came in at 2.1 million tonnes during Sept. 1-15, a decline of about 1.5% from last year and down 6.8% from the same period in 2019, the data showed.

    State retailers Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp Ltd own about 90% of the country’s retail fuel outlets.

    Sales of diesel, which account for about two-fifths of India’s overall refined fuel consumption, are directly linked to industrial activity in Asia’s third-largest economy.

    India’s monsoon rains revived this month after a patchy spell in August. Local diesel sales during September 1-15 was down by about 0.9% from the same period in August, the data showed.

    Improved electricity supplies also contributed to a decline in demand for diesel.

    In contrast, petrol sales stayed above the pre-COVID levels at 1.02 million tonnes as people continued to prefer using personal vehicles over public transport and shared mobility for safety reasons.

    India has not yet fully opened its public transport sector, which mostly use diesel.

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  • Oil Settles Up Near 3-Year Highs On Signs Of Demand Growth

    Oil Settles Up Near 3-Year Highs On Signs Of Demand Growth

    Oil prices steadied on Thursday, holding close to their highest in almost three years, supported by drawdowns in U.S. inventories and accelerating German economic activity.

    Prices also drew support from doubts about the future of the 2015 Iran nuclear deal that could end U.S. sanctions on Iranian crude exports.

    Brent settled up 37 cents, or 0.5%, to $75.56 a barrel by 12:28 p.m. EDT (1628 GMT), after earlier rising to $75.78. U.S. crude settled up 22 cent to $73.30 a barrel, after hitting a session high of $73.61 earlier.

    On Wednesday, both benchmarks hit their highest since October 2018.

    Data from Germany showed the largest upward leap in retail conditions since German reunification more than three decades ago, stoking expectations European fuel demand will recover.

    Across the Atlantic, U.S. crude inventories dropped to their lowest since March 2020, official data showed. U.S. gasoline stocks also posted a surprise draw.

    The Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+ that meets on July 1, have been discussing a further unwinding of last year’s record output cuts from August but no decision has been made, two OPEC+ sources said on Tuesday.

    On Wednesday, Iran said the United States had agreed to remove all sanctions on its oil and shipping but Washington said “nothing is agreed until everything is agreed” in talks to revive the 2015 Iran nuclear deal.

    The end of sanctions and a return of Iranian barrels to the global oil market “could still be months and not weeks away,” said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois.

    Indian Oil Minister Dharmendra Pradhan on Thursday urged OPEC to phase out crude output cuts as high prices are stoking inflation.

    “Given the good sentiment and robust demand, OPEC+ is likely to find it easy next week to announce a further increase in production, at least for August, without jeopardizing the upswing enjoyed by the oil price,” Commerzbank analysts wrote.

    They said “the currently positive general tenor on the oil market” was driving prices up.

    Brent has gained more than 45% this year on the OPEC+ supply cuts and recovering demand. Some industry executives have talked of crude returning to $100 for the first time since 2014.

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  • DHL adds Sustainable Marine Fuel option for full-container load shipment

    DHL adds Sustainable Marine Fuel option for full-container load shipment

    DHL Global Forwarding is introducing another Sustainable Marine Fuel (SMF) service for ocean freight as part of its sustainability strategy.

    In a statement, the air and ocean freight arm of Deutsche Post DHL Group, said they are now extending the carbon reduction option to Full-Container Load (FCL) shipments following the success of the launch of a similar service for Less-than-Container Load (LCL) shipments.

    It said offering the option of using SMF is another step towards cleaner and greener ocean freight, in line with Deutsche Post DHL Group’s Mission 2050 of net-zero emissions logistics.

    “As one of the leading ocean freight forwarders globally, we take a serious commitment in our fight against climate change. With the strong demand for ocean freight in the Asia Pacific, we are in a prime position to offer our customers a new and easier way to reduce their carbon footprint, by choosing sustainable biofuels and decarbonizing their entire ocean freight trade lanes,” said Kelvin Leung, CEO DHL Global Forwarding Asia Pacific.

    He added that the launch of this new service “reinforces” DHL’s push toward a more sustainable supply chain.

    The SMF service is now available for all ocean freight shipments. DHL said the carbon reduction is achieved by DHL Global Forwarding purchasing SMF through partners and matching it with the amount consumed in the FCL shipment.

    It added that through the “book & claim” mechanism, there is no requirement for physical traceability of the fuel through a supply chain, as the environmental attributes of the SMF are separated from and can be purchased independently of physical fuel.

    “With the goal of ‘burn less, burn clean,’ the logistics provider aims to optimize carbon consumption across its network, fleet, and real estate. As part of this, DHL has a GoGreen carrier rating program that allows the freight forwarder to give preference to carriers with strong environmental performance,” DHL said in its statement.

    It said offering a sustainable alternative fuel for ocean freight is also another step within the Group’s sustainability efforts. By 2030, DHL said it wants to invest EUR 7 billion in climate-neutral logistics solutions and cover at least 30% of its fuel requirements with sustainable fuels.

    DHL noted that its customers can easily choose the use of sustainable biofuels via the myDHLi Quote + Book function, which also includes a carbon calculator.

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  • Petrolimex reports $44 mln profit

    Petrolimex reports $44 mln profit

    Petrolimex has reported pre-tax profits of over VND1 trillion ($44 million) in the first quarter thanks to the Covid-19 pandemic being contained and rising global oil prices.

    It has made a loss of VND1.7 trillion in the same period last year.

    The management of the country’s top fuel retailer said oil prices had risen 24 percent from last year to over $59 per barrel by the end of March.

    In the same period last year, they had plummeted 66 percent to around $22 per barrel.

    Revenues in the first quarter remained virtually unchanged from a year earlier, at VND38.2 trillion.

    It has targets of VND135.2 trillion in revenues and VND3.3 trillion in pre-tax profits, up 9 percent and 138 percent respectively, for the full year.

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  • Honda Vietnam to recall cars over fuel pump issue

    Honda Vietnam to recall cars over fuel pump issue

    Honda Vietnam has announced it would recall 27,640 locally assembled and imported vehicles to resolve a fuel pump malfunction.

    The affected models are City (8,626 units), Civic (3,624 units), CR-V (10,687 units), HR-V (3,630 units), Jazz (630 units) and Accord (442 units) made in 2019. Out of nearly 28,000 defective vehicles, 19,014 were locally assembled, with the rest imported from Thailand. The recall will start this Wednesday.

    Faults related to the fuel pump installed in these vehicles may involve defective impellers. Over time, the pump may crack, deform and prevent the engine from starting or stalling.

    At present, there is no record of safety threats due to the fuel pump error in the Vietnamese market. Vehicle owners are advised to visit authorized dealerships to have their engines checked.

    Replacements will be made when spare parts become available. Spare parts and related services would be completely free of charge. For vehicles imported through non-genuine import dealerships, in case customers request, Honda Vietnam would still provide relevant information.

    Honda was the fourth best-selling auto brand in Vietnam in the first quarter of this year with 6,782 units sold, up 24.7 percent year-on-year.

  • Huge Rise In Coronavirus Cases Hit India’s April Fuel Demand

    Huge Rise In Coronavirus Cases Hit India’s April Fuel Demand

    Indian state refiners’ local fuel sales in April declined due to state-level restrictions aimed at stemming a rampant second wave of coronavirus infections, preliminary data shows. The deadly second wave topped 400,000 new daily cases for the first time on Saturday.

    Authorities reported 401,993 new cases in the previous 24 hours, the highest daily count globally, after 10 consecutive days over 300,000. Deaths from COVID-19 jumped by 3,523, taking the total toll in India to 211,853.

    “Overall fuel demand is down by about 7% from pre-covid level of April 2019,” said A.K. Singh, head of marketing at refiner Bharat Petroleum Corp.

    “We were near pre-covid level in March but new restrictions and covid wave-2 has temporarily reduced demand equivalent to about 10% of March demand for both personal mobility and industrial goods movement,” Singh told Reuters.

    He said the local fuel consumption will ‘start to look up’ in June, by when second wave of coronavirus is expected to weaken.

    Analysts are expecting India’s demand for transportation fuels to witness a sharper slump in May due to more impending restrictions.

    Declining fuel sales will reduce crude intake by refiners. The country’s top refiner Indian Oil Corp is operating refineries at an average 95% capacity.

    State companies – IOC, Hindustan Petroleum Corp and BPCL – own about 90% of India’s retail fuel outlets.

    State retailers’ fuel sales in April declined from their sales in March and April 2019 levels, while posting a sharp rise from the year ago month when there was a nation-wide lockdown.

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  • Shell’s 2020 Carbon Emissions Fall On The Back Of Fuel Sales Drop

    Shell’s 2020 Carbon Emissions Fall On The Back Of Fuel Sales Drop

    Royal Dutch Shell, owner of the world’s largest fuel retail network, said on Thursday its total greenhouse gas emissions dropped 16% in 2020 as oil and gas sales fell sharply due to the coronavirus pandemic. Shell said in its annual report that total emissions from its oil wells to forecourt fuel sales fell to 1.38 billion tonnes of carbon dioxide equivalent last year, from 1.65 billion in 2019.

    “One of the major causes of this larger than expected reduction in 2020 was lower demand for energy, especially for oil and gas,” it said.

    Shell said its total greenhouse gas emissions dropped 16% in 2020 as oil and gas sales fell sharply due to the coronavirus pandemic.

    Energy majors’ climate reporting differs in that some emissions data, for example, the data Shell released on Thursday, includes planet-warming gases from the combustion of fuels they produce themselves plus the oil products they sell but are produced by another company. Others, like BP, only cover the former: emissions from the combustion of fuels made from crude oil they produce themselves.

    Net carbon intensity, the main measure the Anglo-Dutch focuses on in its energy transition strategy, dropped last year to 75 grams of CO2 equivalent per megajoules, a 4% reduction from 2019, Shell said. Carbon energy intensity means a company can increase its fossil fuel output while offsetting its carbon emissions or adding renewable energy to its product mix.

    Shell has begun a major overhaul to shift away from oil and gas to low-carbon energy, power trading and retail in order to reduce its greenhouse gas emissions to net-zero by mid-century, including the use of offsets for residual emissions. Shell runs around 46,000 retail fuel stations. Its executives’ pay is linked to its success in reaching its climate targets.

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