Latest news with #APM
Time of India
17 hours ago
- Business
- Time of India
Crude oil price rise to increase import bill by $13–14 bn, widen CAD by 0.3% of GDP: ICRA
New Delhi: A $10 per barrel increase in average crude oil prices could raise India's net oil imports by $13–14 billion and widen the current account deficit (CAD) by 0.3 per cent of GDP, rating agency ICRA said in a report. The agency said that following the June 13 conflict escalation between Israel and Iran, crude prices rose sharply from $64–65 per barrel to $74–75 per barrel, raising concerns for crude- and gas-importing countries like India. India sources 45–50 per cent of its crude oil and nearly 54 per cent of its liquefied natural gas (LNG) from West Asia via the Strait of Hormuz (SoH). ICRA said that geopolitical tensions in the region have increased the risk to global energy trade, with any disruption at SoH potentially impacting about 20 per cent of global oil and 25 per cent of global LNG supplies. The agency has projected Brent crude oil prices to average $70–80 per barrel in FY26, with net oil imports expected at around $120 billion, compared with $123.4 billion in FY25. ICRA estimates the CAD to widen to $50–52 billion or 1.2–1.3 per cent of GDP in FY26, from 0.9 per cent in FY25. Marketing margins of oil marketing companies (OMCs) for petrol and diesel are likely to moderate to Rs 6–8 per litre in FY26 due to higher crude prices. Under-recoveries on subsidised liquefied petroleum gas (LPG) may increase to Rs 160 billion. While upstream companies may not see an immediate impact on their earnings at current crude prices, a prolonged surge could affect private investment and macroeconomic stability. ICRA also noted that natural gas prices are likely to rise in the upcoming reset in July 2025. The agency expects the Administered Pricing Mechanism (APM) gas price to revert to USD 6.75 per mmBtu from USD 6.5 per mmBtu. New well gas (NWG) prices are also estimated to increase by 10 per cent. India imports over 20 per cent of its global LNG from Qatar and UAE, with 85 per cent of their LNG exports passing through the SoH. Any extended disruption to shipping lanes could impact LNG supply and pricing in the domestic market. Gas-based power plants, currently operating at plant load factors of less than 20 per cent, are unlikely to see major changes unless domestic gas availability improves. Fertiliser companies may witness higher input costs and elevated subsidy needs, particularly for urea and ammonia. The report said that city gas distribution (CGD) companies and industrial consumers may also face higher spot LNG costs and shipping rates. ICRA further estimates that a 10 per cent increase in crude oil prices could lead to an 80–100 basis points increase in wholesale price index (WPI) inflation and a 20–30 basis points increase in consumer price index (CPI) inflation, depending on how much of the increase is passed on to end-users. India's GDP growth forecast of 6.2 per cent for FY26 could also be revised downward if crude oil prices remain elevated. The Reserve Bank of India's (RBI) April 2024 Monetary Policy Report estimated that a 10 per cent rise in crude oil prices over a baseline of USD 70 per barrel could reduce GDP growth by 15 basis points. ICRA said any extended disruption or closure of the SoH could impact India's LNG import availability and cost, increase domestic gas prices, and alter energy sector trade flows.
Time of India
18 hours ago
- Business
- Time of India
Crude oil price rise to increase import bill by $13–14 bn, widen CAD by 0.3% of GDP: ICRA
New Delhi: A $10 per barrel increase in average crude oil prices could raise India's net oil imports by $13–14 billion and widen the current account deficit (CAD) by 0.3 per cent of GDP, rating agency ICRA said in a report. The agency said that following the June 13 conflict escalation between Israel and Iran, crude prices rose sharply from $64–65 per barrel to $74–75 per barrel, raising concerns for crude- and gas-importing countries like India. India sources 45–50 per cent of its crude oil and nearly 54 per cent of its liquefied natural gas (LNG) from West Asia via the Strait of Hormuz (SoH). ICRA said that geopolitical tensions in the region have increased the risk to global energy trade, with any disruption at SoH potentially impacting about 20 per cent of global oil and 25 per cent of global LNG supplies. The agency has projected Brent crude oil prices to average $70–80 per barrel in FY26, with net oil imports expected at around $120 billion, compared with $123.4 billion in FY25. ICRA estimates the CAD to widen to $50–52 billion or 1.2–1.3 per cent of GDP in FY26, from 0.9 per cent in FY25. Marketing margins of oil marketing companies (OMCs) for petrol and diesel are likely to moderate to Rs 6–8 per litre in FY26 due to higher crude prices. Under-recoveries on subsidised liquefied petroleum gas (LPG) may increase to Rs 160 billion. While upstream companies may not see an immediate impact on their earnings at current crude prices, a prolonged surge could affect private investment and macroeconomic stability. ICRA also noted that natural gas prices are likely to rise in the upcoming reset in July 2025. The agency expects the Administered Pricing Mechanism (APM) gas price to revert to USD 6.75 per mmBtu from USD 6.5 per mmBtu. New well gas (NWG) prices are also estimated to increase by 10 per cent. India imports over 20 per cent of its global LNG from Qatar and UAE, with 85 per cent of their LNG exports passing through the SoH. Any extended disruption to shipping lanes could impact LNG supply and pricing in the domestic market. Gas-based power plants, currently operating at plant load factors of less than 20 per cent, are unlikely to see major changes unless domestic gas availability improves. Fertiliser companies may witness higher input costs and elevated subsidy needs, particularly for urea and ammonia. The report said that city gas distribution (CGD) companies and industrial consumers may also face higher spot LNG costs and shipping rates. ICRA further estimates that a 10 per cent increase in crude oil prices could lead to an 80–100 basis points increase in wholesale price index (WPI) inflation and a 20–30 basis points increase in consumer price index (CPI) inflation, depending on how much of the increase is passed on to end-users. India's GDP growth forecast of 6.2 per cent for FY26 could also be revised downward if crude oil prices remain elevated. The Reserve Bank of India's (RBI) April 2024 Monetary Policy Report estimated that a 10 per cent rise in crude oil prices over a baseline of USD 70 per barrel could reduce GDP growth by 15 basis points. ICRA said any extended disruption or closure of the SoH could impact India's LNG import availability and cost, increase domestic gas prices, and alter energy sector trade flows.
The Sun
a day ago
- Automotive
- The Sun
APM mulls setting up accident response community in high-risk areas
KOTA BHARU: The Malaysian Civil Defence Force (APM) is studying a proposal to establish an Accident Response Community in high-risk areas to strengthen early response efforts in the event of road incidents. APM Chief Commissioner Datuk Aminurrahim Mohamed said the proposal was mooted following a recent accident involving an express bus carrying 15 students from Universiti Pendidikan Sultan Idris on the East-West Highway near Tasik Banding, Gerik, in Perak on June 9. He said discussions have been held with the Perak and Kelantan APM on the matter, and the agency is ready to enhance its capabilities through a more comprehensive new initiative. 'APM has carried out initiatives such as Op Prihation, which focuses on high-traffic locations prone to vehicle breakdowns, fuel depletion or leakages. However, this operation is not conducted year-round and is not specifically focused on accidents,' he told reporters after the Kelantan APM Loyalty Assembly here today. Aminurrahim said APM has also implemented Op Rahmah, which focuses on potential disasters such as landslides, sinkholes and hazardous material pollution, in collaboration with the Department of Environment. He said the proposed approach would combine current efforts with a targeted focus on identified accident hotspots, guided by data and insights from the Malaysian Institute of Road Safety Research (MIROS). 'I've met with the MIROS director-general, and discussions are ongoing on how APM can play a meaningful role in addressing accident-prone areas. MIROS has already identified several high-risk locations and introduced initiatives to reduce such incidents,' he said. Aminurrahim added that APM plans to train local residents in these high-risk areas, similar to its Kampung Siaga initiative for flood preparedness. 'Through the Accident Response Community, locals can quickly relay information to authorities such as the police or Road Transport Department in the event of an accident or traffic violations. Basic training will be provided to these communities,' he said. He also stressed that while APM cannot be permanently stationed in every location, a strong community-based support system is vital in ensuring a swift response before official assistance arrives.
Borneo Post
2 days ago
- Business
- Borneo Post
RON97 price up seven sen, RON95 unchanged
In a statement today, MOF says the retail price of diesel in Sabah, Sarawak and Labuan remains at RM2.15 per litre, while in Peninsular Malaysia it will rise by seven sen per litre, from RM2.74 to RM2.81, during the same period. – Bernama photo KUALA LUMPUR (June 18): The retail price of RON97 petrol will increase by seven sen per litre, from RM3.07 to RM3.14, for the period from June 19 to 25, while that of RON95 remains unchanged at RM2.05 per litre. In a statement today, the Ministry of Finance (MOF) said the retail price of diesel in Sabah, Sarawak and Labuan remains at RM2.15 per litre, while in Peninsular Malaysia it will rise by seven sen per litre, from RM2.74 to RM2.81, during the same period. 'In line with the increase in global oil market prices, the government has set the retail price of RON97 petrol at RM3.14 per litre, while the retail price of diesel in Peninsular Malaysia is RM2.81 per litre. 'The diesel price in Peninsular Malaysia remains lower compared to the floated price of RM3.35 per litre on June 10, 2024,' the statement said. MOF said the prices were set based on the weekly retail pricing of petroleum products using the Automatic Pricing Mechanism (APM) formula. It said the government will continue to monitor the impact of changes in global crude oil prices and take appropriate measures to ensure the welfare and well-being of the people are safeguarded. – Bernama diesel MoF petrol price RON95 RON97
The Sun
2 days ago
- Business
- The Sun
RON97 price up seven sen, RON95 unchanged
KUALA LUMPUR: The retail price of RON97 petrol will increase by seven sen per litre, from RM3.07 to RM3.14, for the period from June 19 to 25, while that of RON95 remains unchanged at RM2.05 per litre. In a statement today, the Ministry of Finance (MOF) said the retail price of diesel in Sabah, Sarawak and Labuan remains at RM2.15 per litre, while in Peninsular Malaysia it will rise by seven sen per litre, from RM2.74 to RM2.81, during the same period. 'In line with the increase in global oil market prices, the government has set the retail price of RON97 petrol at RM3.14 per litre, while the retail price of diesel in Peninsular Malaysia is RM2.81 per litre. 'The diesel price in Peninsular Malaysia remains lower compared to the floated price of RM3.35 per litre on June 10, 2024,' the statement said. MOF said the prices were set based on the weekly retail pricing of petroleum products using the Automatic Pricing Mechanism (APM) formula. It said the government will continue to monitor the impact of changes in global crude oil prices and take appropriate measures to ensure the welfare and well-being of the people are safeguarded.
