Indian Govt Bars Bulk Industrial Petrol, Diesel Purchases Through Petrol Pump

The government restricted industrial and commercial users from buying petrol and diesel from petrol pumps and instead asked them to source their requirements from bulk sale points, according to an official order, reported PTI.

The restrictions, which will be in place for up to 90 days, follows abnormal demand growth, particularly that of diesel, in some pockets after bulk users started buying fuel from petrol pumps due to the pricing difference. While diesel at petrol pumps costs ₹95.20 a litre in Delhi, bulk sales are priced at ₹134.50. The difference arose as state-owned oil companies modulated retail prices to insulate common users from the spike in cost that followed the West Asia crisis in late February. While bulk users such as telecom towers and industries using diesel for power generation and other feedstock needs are charged market price, the retail pump rates are way lower than cost.

100 Days of US-Israel War Against Iran: Asia Bears Brunt of Energy Crisis

More than 100 days into the US-Israel war against Iran, Asia has emerged as the region most exposed to the global energy shock unleashed by the closure of the Strait of Hormuz, with countries facing soaring fuel bills, rising food prices, and growing fiscal burdens according to a new factsheet by research group Zero Carbon Analytics (ZCA), reported DTE.

The Strait of Hormuz, through which a significant share of global oil, gas and fertiliser trade passes, has become a major choke point. Brent crude prices climbed to $138 per barrel during the crisis, while global food prices reached a near three-year high and fertiliser shortages threatened planting seasons across the Northern Hemisphere.

The outlet said India is among the countries most exposed to the economic fallout. According to the factsheet, if crude oil remains at $100 per barrel for four months, Asia's total fossil fuel subsidy bill would exceed $80 billion. India would bear the heaviest burden among Asia's major economies, facing costs equivalent to 0.7% of GDP and 7.2% of government revenue in fiscal year 2025-26.

India is also highly exposed to disruptions in fertiliser supply chains. About 40% of the country's urea imports originate from the Gulf region, making agriculture vulnerable to rising fertiliser costs and shortages.

The World Bank's fertiliser price index is projected to increase by more than 30 per cent this year. Globally, 34% of urea trade and 23% of ammonia trade passed through the Strait of Hormuz in 2024. India, the United States, Australia and Brazil are among the largest importers of ammonia from the region.

Nitin Gadkari Approves 100% Ethanol Fuel Use to Reduce Fossil Fuel Imports

India’s Union Minister for Road Transport and Highways Nitin Gadkari approved regulations granting legal recognition to the use of 100% ethanol fuel, a move aimed at reducing India’s dependence on imported fossil fuels, PTI reported. He noted that the country currently spends around ₹22 trillion on imports. Gadkari said several major automakers are preparing to introduce ethanol-compatible vehicles in the coming weeks: “Companies such as Toyota, Suzuki, MG and Hyundai will launch 100% ethanol-compatible vehicles within the next month-and-a-half," he said.

E20, the E85 and E100 grades require the use of flex-fuel engines. The government plans to roll out E85 at close to 500 retail outlets by December and around 5,000 pumps by end-2027.

Last week, the Financial Express had reported that fuel station operators are concerned over the E85 rollout due to insufficient space at pumps and a lack of demand for the high-ethanol blend.

“There is virtually no consumer demand for E85 today. Yet operators are being asked to dedicate infrastructure and valuable space for it. Initial sales of flex-fuel vehicles are expected to be limited, largely in the two-wheeler segment. Until vehicle volumes reach meaningful scale, much of this infrastructure could remain underutilised,” one dealer told the newspaper.

India is the Second Largest Buyer of Russian Oil in May 

India remained the world's second-largest buyer of Russian fossil fuels in May, importing an estimated 5.8 billion euros (USD 6.7 billion) worth of Russian hydrocarbons as refiners stepped up crude purchases from Moscow, European think tank Centre for Research on Energy and Clean Air (CREA) said in a report.

Crude oil accounted for about 83% of India's imports from Russia during the month, valued at 4.8 billion euros, while oil products and coal imports stood at 550 million euros and 429 million euros, respectively.

"India's total crude import volumes recorded an 8% month-on-month increase in May. This is partially explained by a 21% month-on-month increase in Russian imports," CREA said.

The latest figures suggest Russian oil continues to account for a significant share of India's crude import basket, even as the country diversifies supplies from the Middle East, Africa and the United States.

US: Trump Plans $700m in New Spending For Coal-fired Power Plants, Coal Exports

Trump’s announcement of $700 million to support coal-fired power plants and coal exports in the US is part of his plans to use powers granted under a “Cold War-era national defense law”,  Thr Associated Press reported. The newswire said the funds will go towards 13 existing coal plants, the construction of the first new plants in the US since 2013 in Alaska and West Virginia and a long-delayed coal export terminal in California, adds the newswire. Trump touted coal as a “great business”, adding that “in terms of power, there’s really nothing like it”. According to the BBC News, the president criticised “failure countries” for investing in renewable energy sources and said his investment would prevent “$50 billion” in new energy generation costs that would otherwise have been passed on to bills. 

The Washington Post said the Trump administration plans to invest $800 million in the “nationwide revival of coal power”, a move that comes as the “highly polluting fuel struggles to stand on its own in the marketplace”. The outlet reported the president intends to draw $350 million set aside by Congress during the Biden administration for “ambitious clean-energy technologies” for his plans. This, it noted, raises “questions about the legal validity of the initiative”.