Petrol price will come down by 92 paise while cost of diesel will go up by 37 paise from midnight tonight in the capital. 

A senior Delhi government official said that they have issued a notification slashing the VAT on the hiked component of petrol while the relief of 37 paise being provided since September last year will be withdrawn on diesel. 

The new rates will come into effect from midnight tonight. Delhi government had a fortnight ago decided to slash the VAT on the hiked component of the petrol price.

Petrol will cost 70.24 rupees per litre from current 71.16 rupees per litre and diesel will cost 41.28 rupees per litre as against the current rate of 40.91 rupees per litre.

India and the United Arab Emirates have decided to set up a high-level joint task force on investment which will also look into securing more oil supplies from UAE.

Managing Director of the Abu Dhabi Investment Authority Sheikh Hamad bin Zayed al Nahyan and India’s Commerce and Industries Minister Anand Sharma will lead the respective sides of the high-level task force. The decision was taken following wide ranging discussions between External Affairs minister SM Krishna and his counterpart from UAE Sheikh Abdullah bin Zayed Al Nahyan in New Delhi on Friday.

Noting that the United Arab Emirates’ leadership is now keen to address the issue of investments to bring it on par with the multi-faceted relations the two countries enjoy in all other sectors, he said the high-level joint task force would explore further opportunities in investments.

Sheikh Hamad bin Zayed al Nahyan said besides oil, UAE was also looking at investment opportunities in sectors like petrochemicals.

Both the leaders held discussions on ways to boost trade ties and maritime security cooperation to tackle piracy. Other issues that figured in talks, included situation in West Asia, Iran's nuclear programme, Afghanistan and Indo-Pak relations.

The two sides also discussed the 3rd India-Arab Economic Conclave to be held in Abu Dhabi from Monday.

Crude oil production in the Organisation of Petroleum Exporting Countries (OPEC) went up by 1,20,000 barrels per day in March. Platts, an international leading agency on oil markets in its latest survey for the month of March has put the average crude oil output at 31.39 million barrels per day.

AIR correspondent reports, the Platts report says the crude oil output has gone up because of increased production by Iraq, Libya and Saudi Arabia. However it was partly offset by a decrease in yield over 200,000 barrels per day from Angola and Iran. The output from Iran fell 100,000 barrels per day to 3.4 million barrels per day. The report said, the impact of EU ban on import and transport of Iran oil is showing. Refineries are seeking replacement supplies or, because of insurance issues it is difficult to find ships willing to carry Iranian crude. 

The report added that the threat of US sanctions on countries which do not reduce their imports of Iranian oil is also impacting Iran’s oil exports. However, the silver linings have been an increased output from Iraq, Libya and Saudi Arabia. Iraqi volumes showed a sizeable increase with higher exports. Libyan output has continued to recover and is now just 250,000 barrels per day short of pre-uprising levels. The steady supplies have also resulted in maintaining the oil prices within a manageable limit.

State-owned oil companies warned of disruptions in fuel supplies if they are not allowed to raise petrol price or compensated for the 48 crore rupees per day loss the companies incur on selling fuel below cost.
The situation is very critical. We are losing 7.67 rupees per litre on petrol and after adding 20 per cent sales tax. Indian Oil Corp (IOC) Chairman R S Butola told reporters that 93 per cent of cost of production is on account of crude oil, which the companies have to import.

IOC and other oil PSUs, Bharat Petroleum and Hindustan Petroleum are losing 48 crore rupees per day on sale of petrol, whose pricing was decontrolled by the government in June 2010.

But the government hasn't allowed the oil companies to hike petrol price.

This is a peculiar scenario where the central government earns 14.78 rupees on every litre of petrol sold (in excise duty) and states governments get anything between 10 to 20 rupees per litre. Mr. Butola said the oil companies are not allowed to earn anything.

Petrol has become cheaper in Goa by eleven rupees a litre from today. It will now be available at 54 rupees per litre. A notification to this effect has been issued by the state government. 

This follows an announcement made by Chief Minister Manohar Parrikar in the state assembly on March 26 while presenting the state's annual budget. 

, Goa is the first state to reduce the prices of petrol.

Essar Oil has announced the completion of its 8,300-crore rupee expansion of its Vadinar oil refinery in Gujarat that will boost company's turnover by 30 to 35 per cent, besides improving margins.

Vadinar Refinery is now India's second largest single-location refinery, with an annual capacity of 18 million tons, up from 14 million tons currently.

The capacity expansion and complexity enhancement gives the Vadinar Refinery the capability to process much heavier crude, which is cheaper

Oil fell to trade near the lowest in almost a week in New York on Thursday, after stockpiles surged in the U.S., the world’s largest crude consumer, and Western countries discussed tapping emergency reserves.

Commerce Minister Anand Sharma today said, the BRICS, economies comprising Brazil, Russia, India, China and South Africa have an important role to play in defining the changing global financial architecture.

Mr. Sharma said this while addressing the inaugural session of the BRICS Business Forum in New Delhi this morning.

He said, the BRICS countries are the engines of growth assisting the global economic recovery, and they should jointly work towards their concerns being heard in the international fore.

Mr. Sharma said, the coming together of the five countries have attracted global attention as they have tremendous potential for collective economic prosperity.

He called upon the BRICS nations to deepen and diversify the economic partnership to benefit their own people and also to contribute towards faster global economic recovery.

He said, the member nations have to set priorities and targets while ensuring free flow of capital, exchange of technology and to create a common platform for enhanced trade and commerce.

He said, India is back on the path of achieving higher economic growth rate though it was recently impacted by low demand in the US, Europe and Japan. He said, high international oil prices, import of gold also put the current Account deficit position under duress. 

Speaking on the occasion the Chinese Commerce minister, Chen Deming said, his country expects to clock 7.5 per cent growth even though a slow down was experienced.

Russia's Economic minister Ms. Elvira Nabiullina said, Russia though not a developing country registered 4.3 per cent growth and hopes to regain the growth rate of pre crisis levels. She also favored exchanges of national currency denominations between the BRICS nations for trade. 

The South African Trade Minister Rob Davis said, his country's economy is closely interlinked with the African continent that has clocked 5.5 per cent growth. He said, Africa has opened up as land of tremendous opportunities for Industrialisation.

He said, a 29 percent increase was observed in trade with BRICS nations. Industry minister of Brazil Fernando Pimentel Brazil said, his country looks forward to enhanced economic activity between the BRICS countries