India’s Gas Pricing System

India has a complex and heterogeneous gas pricing system mainly composed of two pricing regimes viz. APM (Administrative Price Mechanism) and non-APM (aka. free market gas). The APM gas price is declared by Petroleum Planning and Analysis Cell (PPAC).  The non-APM/free ..

Oil Bonds in India

The mechanism for oil bonds was devised in 2005-06. The oil bonds issued by the government typically have maturities of ranging between 5-7 years, although maturities can be up to 20 years. Oil companies used these bonds to sell them ..

Administered Price Mechanism

From 1970s to 2002, there was an Administered Price Mechanism (APM) system in place in oil sector. Under this system, the oil and gas sector was controlled at four stages viz. production, refining, distribution and marketing. The supply of raw ..

How Crude Oil is priced?

The collapse of the OPEC administered pricing system in 1986-1988 ushered in a new era in oil pricing in which the power to set oil prices shifted from OPEC to the so called “market”. This system was first adopted by ..

Oil Crisis of 1973

In 1960, OPEC was formed to counter the cartel and try to control the prices of oil. Between 1965 and 1973, global demand for oil increased at a fast rate with an average annual increase of more than 3 million ..

Crude Oil Pricing in pre-OPEC Era

The world oil prices were first administered by the large multinational oil companies in the 1950s and 1960s in the name of a 1927 Red Line agreement and one more such agreement.  At that time, the international oil industry outside ..

What are Benchmarks in Crude Oils?

The crude oil prices about which we generally read in newspapers are the spot price per barrel or per 159 litres. The rate at which Crude oil is sold in market is highly dependent on its grade, its specific gravity, ..

Industry wise use of Natural Gas in India

India is the world’s seventh largest energy producer, accounting for 2.49% of the world’s total annual energy production.  Around 60% of the natural gas produced in India is used for Energy purpose.  Out of this, maximum amount is used in Power Generation, ..