REGULATORY · MARKET STRUCTURE · INDIA
India orders oil and gas firms to share data
Change
India ordered oil and gas companies to provide import and export data to the Petroleum Planning and Analysis Cell (PPAC).
Why it matters
All companies in the oil and gas supply chain — including oil producers, importers, refiners, fuel and gas retailers, liquefied natural gas importers, pipeline operators, and petrochemical plants — were ordered to provide import and export data to PPAC. The government invoked emergency powers to order refiners to maximise LPG production and cut LPG sales to industry to avoid shortages for 333 million homes with LPG connections. India has not imposed a ban on refined fuel exports, unlike China. Any move to curtail fuel exports will hit Reliance Industries, operator of the world’s biggest refining complex, because other refiners have largely stopped exporting fuels. India meets over 90% of its oil needs through overseas purchases.
Implications
- · PPAC obtains centralized access to import and export data across the oil and gas supply chain.
- · Refiners are required to prioritise LPG production and reduce industrial LPG sales to preserve household supplies.
- · Export reductions concentrate export impacts on Reliance Industries given other refiners’ reduced exports.
Who is affected
- · Refiners
- · Oil producers and importers
- · Fuel and gas retailers (including LPG distributors and LNG importers)
- · Pipeline operators and petrochemical plants
Source
Topics
Law & Public Safety Compliance Business & Markets Supply Chain & Logistics Energy & Power Oil & Gas