ONGC

Adds companies planning a staggered increase in pump prices

NEW DELHI, May 19 (Reuters) - India state-fuel retailers raised petrol and diesel prices by less than a rupee per litre on Tuesday, the second increase in a week to recover some losses from high crude prices resulting from the Iran war.

After the rise of roughly 0.9 rupees ($0.0093), consumers will pay 98.64 rupees for a litre of petrol in New Delhi and 91.58 rupees for a litre of diesel, dealers said. Prices vary across the country because of regional taxes.

Although petrol and diesel prices are deregulated in India, the government exerts significant influence on prices as the majority shareholder of the key retail companies.

Sujata Sharma, a joint secretary in the oil ministry, said on Monday the state fuel retailers have been losing 7.5 billion rupees daily. The government has no plans to provide financial support for them, Sharma said.

Sources at refiners said more price hikes are needed to recoup the losses. The fuel retailers did not respond to Reuters' emails seeking comment.

India is the world's third-largest importer and consumer of oil and was one of the last major economies to raise retail fuel prices after the U.S.-Israeli war on Iran triggered a surge in prices globally.

State-run Indian Oil Corp IOC.NS, Hindustan Petroleum HPCL.NS and Bharat Petroleum BPCL.NS, which together control more than 90% of a network of 103,000 fuel stations, tend to set prices in tandem.

The state-run suppliers raised petrol and diesel prices on Friday by 3 rupees a litre, the country's first price increase in four years.

Dealers and analysts said they expected a staggered increase in prices, similar to April 2022 during the COVID pandemic.

Opposition parties said the government, headed by Prime Minister Narendra Modi, had postponed price increases to try to win votes in recent state elections. Modi's Bharatiya Janata Party won two of the four states, expanding its political influence.

Modi has urged people to limit their travel to conserve fuel and curb buying gold.

($1=96.3450 Indian rupees)

(Reporting by Mohi Narayan, Tanvi Mehta and Nidhi Verma, Chris Thomas in Mexico City; Editing by Clarence Fernandez, Thomas Derpinghaus and Neil Fullick)

((chris.thomas@thomsonreuters.com;))

** Oil and Natural Gas Corporation ONGC.NS shares rose 7.8% in the second week of May, marking their biggest weekly gain since January

** The stock gained earlier in the week after India cut royalties on crude oil and gas production, a move brokerages described as a "big positive" for upstream firms

** Government cut royalty on crude from ONGC's older oil fields to 12.5% from 20% and allowed higher cost deductions

** Brokerage CLSA reiterates its "high-conviction outperform" rating on ONGC after the move

** Jefferies expects ONGC to fully benefit from higher crude prices, easing investor concerns over price caps while crude stays elevated near term

** Eighteen of 30 brokerages rate the stock "buy" or higher; their median PT is 309 rupees

** YTD, ONGC up 24.8%

(Reporting by Abhinav Parmar in Bengaluru)

((Abhinav.Parmar@thomsonreuters.com;))

** Oil and Natural Gas Corporation's ONGC.NS stock rises 0.4% to 295.55 rupees

** Government cut royalty on crude from ONGC's older oil fields to 12.5% from 20% and allowed higher cost deductions, reducing its royalty burden, Jefferies says

** Brokerage sees the move to lower government royalties in a high crude price environment as a positive for ONGC

** Raises TP on stock to 360 rupees from 325 rupees, representing a 22.2% upside to the stock's last close; maintains 'buy' rating

** Brokerage expects ONGC to fully benefit from higher crude prices, easing investor concerns over price caps while crude stays elevated near term

** Raises FY27, FY28 EPS estimates by 4% and 8% respectively; says production growth and earnings upgrade from higher crude realization are key triggers

** YTD, stock up 22.9%

(Reporting by Abhinav Parmar in Bengaluru)

((Abhinav.Parmar@thomsonreuters.com;))

** Shares of ONGC ONGC.NS and Oil India OILI.NS jump 3.9% and 5.6%, respectively

** CLSA says the government's move to cut royalties on crude oil and gas production is a "big positive" for upstream firms

** Says the surprise cut could lift fair value for ONGC by 7%-9% and for Oil India by 9%-11%

** "This surprise action to cut upstream tax instead of raising it should put fears of new windfall tax to rest," CLSA says

** CLSA estimates the changes imply a blended royalty cut of about 3 percentage points for ONGC; at $80/bbl oil, this could add roughly 20 rupees–24 rupees per share to fair value

** For OILI, the all-onshore production profile means a sharper impact, with potential fair value gains of 9%-11%, CLSA says

** Adds the policy shift signals the government's intent to support upstream investment and production, reducing fears of higher taxation

** Brokerage reiterates its "high-conviction outperform" rating on ONGC

** YTD, ONGC stock jumps ~22%, OILI up ~14%; energy index .NIFTYENR gains 13%

(Reporting by Kashish Tandon in Bengaluru)

((Kashish.tandon@thomsonreuters.com))

NEW DELHI/SINGAPORE, May 6 (Reuters) - India's state-run Hindustan Petroleum Corp HPCL.NS has bought two million barrels of Oman crude for delivery in July, traders said on Wednesday.

• HPCL bought the oil from Vitol at a discount of 10-20 cents to the June dated Brent price, the traders said.

• The companies typically do not comment on their commercial deals.

• Oman crude is exported from the terminal at Mina Al Fahal outside of the Strait of Hormuz.

(Reporting by Nidhi Verma in New Delhi and Siyi Liu in Singapore
Editing by David Goodman
)

((siyi.liu@thomsonreuters.com;))

May 1 (Reuters) - Oil and Natural Gas Corporation Ltd ONGC.NS:

• ONGC LTD- VIVEK CHANDRAKANT TONGAONKAR CEASED TO BE DIRECTOR (FINANCE) AND CHIEF FINANCIAL OFFICER (CFO)

Further company coverage: ONGC.NS

((Reuters.Briefs@thomsonreuters.com;))

SAO PAULO, April 27 (Reuters) - Brazilian state-run firm Petrobras PETR3.SA announced on Monday an agreement to acquire a portion of the Argonauta oil field's ring-fence in the Campos Basin for some $290 million.

Petrobras said in a securities filing it would pay for the portion - which belongs to Shell SHEL.L, ONGC ONGC.NS and Brava BRAV3.SA - in three installments. The transaction was valued at a sum of 700 million reais ($140.50 million) and $150 million.

($1 = 4.9822 reais)

(Reporting by Fernando Cardoso; Editing by Chris Reese)

((fernando.cardoso@thomsonreuters.com;))

** India's upstream oil firms ONGC ONGC.NS and Oil India OILI.NS up 0.3% and 0.2% respectively

** Nifty oil and gas .NIFOILGAS up 1.1%, set for third weekly gain

** Ambit Capital cites government decision to hold off on windfall taxes a key positive for sector

** Revises crude oil realisation ceiling assumption to $80/barrel from $70, upgrades earnings per share by 13%-17% for both cos

** Adds, sustained policy push to increase acreage and accelerate deepwater, offshore exploration signals support

** Says, should expedite project timelines, reduce infrastructure bottlenecks, and enable upstream players to drive stronger production growth with better capital efficiency

** Indian exploration and production companies trade at a discount to global peers due to volatility in windfall taxes, historical production disappointments and capped gas realisations

** YTD, ONGC up 18%, while OILI up ~9%; Nifty Oil & Gas down 7%

(Reporting by Pranav Kashyap in Bengaluru)

((pranav.kashyap@tr.com; +919886482111;))

By Nidhi Verma

NEW DELHI, April 13 (Reuters) - India's state-run Hindustan Petroleum Corp HPCL.NS has issued a rare tender seeking a liquefied petroleum gas tanker to immediately load propane and butane from Russia's Ust-Luga port, a tender document seen by Reuters on Monday showed.

The vessel, to be loaded with 12,000 metric tons of butane and 8,000 tons of propane for discharge on India's west coast, must not be under sanctions and must have no links to Iran, the document said.

HPCL did not immediately respond to a request for comment.

Indian state refiners are seeking to buy LPG, used as cooking gas, from more diversified sources including Russia as India faces its worst LPG supply crisis in decades.

Supplies from the Middle East have been disrupted by the closure of the Strait of Hormuz following the U.S.-Israeli war on Iran.

Indian authorities have previously said they are purchasing LPG from countries including the U.S., Norway, Canada, and Russia.

India consumed 33.15 million tons of LPG last year, with imports accounting for about 60% of demand. About 90% of those imports came from the Middle East.

(Reporting by Nidhi Verma. Editing by Mark Potter)

((nidhi.verma@thomsonreuters.com; X: @nidhi712;))

** Explorers Oil and Natural Gas Corp ONGC.NS, Oil India OILI.NS fall as much as 4.1% and 4.3%, respectively

** ONGC biggest loser on Nifty 50 index .NSEI, which is up 3.45%

** Oil prices slide below $100/barrel as a two-week Iran ceasefire sparks relief rally, fuelled by hopes that oil and gas flows through Strait of Hormuz could resume

** Easing oil prices negatively impact realisations, margins for upstream oil companies

** YTD, ONGC up ~17%, OILI up 8%

(Reporting by Urvi Dugar in Bengaluru)

((UrviManoj.Dugar@thomsonreuters.com;))

April 6 (Reuters) - Deep Industries Ltd DEEI.BO:

• DEEP INDUSTRIES LTD - GETS LOA FOR ORDER WORTH 590 MILLION RUPEES FROM ONGC

Source text: ID:nnAZN4SP8BU

Further company coverage: DEEI.BO

((Reuters.Briefs@thomsonreuters.com;))

SINGAPORE, March 31 (Reuters) - For tenders of crude and other oil products, please click:

Crude CRU/TENDA Naphtha NAP/TENDA Gasoline MOG/TENDA Jet/Diesel MDIS/TENDA Fuel Oil FUEL/TENDA

(Reporting by Jeslyn Lerh; Editing by Rashmi Aich)

((jeslyn.lerh@thomsonreuters.com))

SINGAPORE, March 30 (Reuters) - For tenders of crude and other oil products, please click:

Crude CRU/TENDA Naphtha NAP/TENDA Gasoline MOG/TENDA Jet/Diesel MDIS/TENDA Fuel Oil FUEL/TENDA

(Reporting by Jeslyn Lerh;)

((jeslyn.lerh@thomsonreuters.com))

** Shares of India's Oil and Natural Gas Corporation ONGC.NS up 3.44% at 279.50 rupees, set to be the top weekly percentage gainer on the Nifty 50 index .NSEI

** For the week, Indian upstream oil co was up 4.94%, set for best week since late Jan 2026

** Continuing high oil prices with no end in sight to the Iran conflict have contributed to a jump in oil stocks

** CLSA ("outperform") on Tuesday upgraded ONGC's PT to Street-high 405 rupees from 315 rupees

** Underperformance compared to global peers is due to fear of a new windfall tax, said the brokerage; however, the new law passed last year limits the government's power to impose such a tax

** ONGC on avg rated "buy" by 30 analysts; median PT is 299 rupees - LSEG data

** YTD, stock up 16.3%

(Reporting by Abhirami G in Bengaluru)

((abhirami.g@thomsonreuters.com))

SINGAPORE, March 19 (Reuters) - For tenders of crude and other oil products, please click:

Crude CRU/TENDA Naphtha NAP/TENDA Gasoline MOG/TENDA Jet/Diesel MDIS/TENDA Fuel Oil FUEL/TENDA

(further updates on recent tenders closed)

(Reporting by Jeslyn Lerh;)

((jeslyn.lerh@thomsonreuters.com))

SINGAPORE, March 18 (Reuters) - For tenders of crude and other oil products, please click:

Crude CRU/TENDA Naphtha NAP/TENDA Gasoline MOG/TENDA Jet/Diesel MDIS/TENDA Fuel Oil FUEL/TENDA

(further updates on recent tenders closed)

(Reporting by Jeslyn Lerh;)

((jeslyn.lerh@thomsonreuters.com))

India File is published every Tuesday. Think your friend or colleague should know about us? Forward this newsletter to them. They can also subscribe here.

March 17 - By Nidhi C Sai, Editor Online Production, with global Reuters staff

War in the Middle East is straining supply of a fuel that has become indispensable to millions of Indian homes, laying bare how deep an impact geopolitics can now have on everyday lives anywhere in the world.

This week, India File looks at the struggle by households and businesses to adapt to the cooking gas supply crunch, and what it could mean for the future of India's energy mix - and its kitchens.

Plus, what began with a string of suspiciously similar bids for state contracts ended with an antitrust probe that exposed a decade of alleged collusion among some of India's biggest cement makers. Scroll down for more on that.

THIS WEEK IN ASIA

China's economy builds early momentum in 2026 as global risks mount

Trump seeks to delay meeting with China's Xi by 'a month or so'

Afghan Taliban says 400 killed in Pakistan air strike on Kabul hospital, Pakistan rejects claim

Australia central bank hikes rates in tight call as Iran war stokes inflation risk

Vietnam braces for flight cuts from April after China, Thailand ban jet fuel exports

INDIAN KITCHENS FALL VICTIM TO A DISTANT WAR

A conflict thousands of kilometres away is suddenly dictating what households can cook and what restaurants can serve as LPG supplies tighten across India.

The U.S.-Israeli war with Iran has disrupted shipping through the Strait of Hormuz, a critical route handling about a quarter of daily sea-borne energy supplies, including those bound for India, resulting in the South Asian nation's worst gas crisis in decades.

New Delhi has invoked emergency powers, directing refiners to maximise LPG production after state-owned Indian Oil Corp IOC.NS raised the price of a standard 14.2 kg household LPG cylinder by 7% in Delhi, the first increase in about a year.

The government also restricted LPG supplies for industry to ensure households have enough gas for cooking.

Restaurants nationwide are warning of disruptions as commercial gas cylinders become harder to secure.

"We have LPG stock for two days. We are working on contingencies," said Bert Mueller, founder of Mexican food chain California Burrito. "We are conserving gas and installing induction stoves at certain stores."

Hostels and factory canteens are simplifying meals to stretch limited fuel supplies. Read here how paying guest facilities are tackling the issue in Bengaluru.

Also read our last India File edition, which showcases how Indian companies have found themselves in the crosshairs of the war.

Meanwhile, households are taking their own precautions, with daily booking requests for LPG cylinders spiking as people rush to secure refills.

“Panic booking and hoarding behaviour have been driven by misinformation,” said Sujata Sharma, joint secretary at the oil ministry, in an appeal for calm.

Retailers report a surge in demand for induction stoves and electric cooking appliances as households look for backup options. Read here how online searches and sales of induction cooktops have jumped sharply.

Preliminary data suggests the supply chain dislocations are already reshaping consumption patterns: State fuel retailers sold about 1.15 million tonnes of LPG in the first half of March, down 17% from a year earlier and 26% from the previous month.

LPG DEPENDENCE REVEALS DEEP VULNERABILITIES

The cooking gas squeeze is exposing a deeper vulnerability in India’s energy system.

LPG consumption has surged over the past two decades, transforming from a largely urban fuel into a near-universal household necessity as a result of subsidised rural connections under the Pradhan Mantri Ujjwala Yojana initiative.

Household LPG connections have more than doubled since 2014, lifting annual consumption to more than 30 million metric tons, government and industry data show.

At the same time, pricing has become increasingly linked to global markets, leaving households far more exposed to international supply shocks. A standard cylinder that cost around 250-300 rupees in the mid-2000s now sells for about 913 rupees in Delhi.

India is diversifying supplies by securing cargoes from the United States, Norway, Canada and Russia, but the crisis highlights a structural gap: The country maintains strategic crude reserves but has no comparable strategic reserve for LPG, even though some 333 million households depend on it.

New Delhi is trying to leverage its relationship with Tehran to give some two dozen of its ships - six of them laden with LPG - safe passage through the Strait. However, sources say Iran wants two tankers that India seized last month in return, along with medical supplies.

At the policy level, the government is encouraging alternatives that could gradually reduce dependence on gas cylinders. Millions of urban households already have access to piped natural gas connections, and officials say several million LPG users could shift relatively easily.

Are Indian households beginning to move beyond the LPG cylinder, or is this just a temporary reaction to the global energy shock? Write to me at nidhi.csai@thomsonreuters.com

MARKET MATTERS

The deepening Middle East conflict has darkened the outlook for Asia's third-largest economy, with Citi Research and Nomura trimming their year-end targets for the Nifty 50 .NSEI, citing rising risks to growth and earnings.

They say the petrochemical and fertiliser industries are most exposed given India's dependence on imports from the region.

Read the full report by Reuters journalists Bharath Rajeswaran and Vivek Kumar M.

THIS WEEK'S MUST-READ

India’s antitrust watchdog has found evidence that three of the country's cement makers colluded over a decade to rig bids for state-run Oil and Natural Gas Corporation tenders, coordinating prices, divvying up orders and attempting to lock out foreign competitors.

A confidential investigation reviewed by Reuters uncovered a pattern of identically priced bids over multiple projects, which one executive sought to explain away as simply his “lucky number”.

Read this exclusive report by Reuters journalist Aditya Kalra.

(Reporting by Nidhi C Sai; Editing by Kevin Buckland)

((Nidhi.CSai@thomsonreuters.com; +91 70456 55251))

March 10 (Reuters) - Oil and Natural Gas Corporation Ltd ONGC.NS:

• UNITED DRILLING TOOLS LTD - SECURES ORDER VALUED AT 37.28 MILLION RUPEES FROM ONGC

Source text: ID:nNSE2DFHB9

Further company coverage: ONGC.NS

((reuters.briefs@thomsonreuters.com;))

By Aditya Kalra

NEW DELHI, March 9 (Reuters) - When India's largest oil explorer opened a tender for a cement order in 2018, it sensed something was off by the competing bids coming in: all of them were exactly 7,000 rupees per tonne.

Oil and Natural Gas Corporation ONGC.NS queried the bids and got a wry reply from an executive at India Cements. Seven was his "lucky number", he explained.

Suspicious, ONGC quietly lodged an antitrust case against three Indian cement companies.

The details of the case were outlined in a confidential investigation report and evidence that were shared with the companies in January and reviewed by Reuters, following a five-year probe that found a decade of price collusion targeting state-run ONGC.

The Competition Commission of India (CCI) report said the "cartel period" ran 12 years between 2007 and 2018 for Dalmia Cement (Bharat), a unit of India's fourth-largest cement maker Dalmia Bharat DALB.NS, and rival Shree Digvijay SRDC.NS. India Cements ICMN.NS was part of the cartel for 2017-18.

The report identified thinly concealed attempts at collusion by Indian companies, signalling a growing willingness by the regulator to scrutinise domestic firms after months of high-profile investigations into foreign giants.

The Indian cement firms' bid rigging, discussions of supply patterns and efforts to oust foreign bidders were "substantiated from strong evidences in form of communication, meetings, emails, admission," said the 90-page report.

Local media outlet Zee Business reported the basic finding of wrongdoing last year, but Reuters is the first to report the detailed tactics and evidence which underpin CCI's investigation findings.

Dalmia Bharat declined to comment citing pendency of the matter before the CCI, but has previously said it is cooperating with the authorities. India Cements, which was acquired by No. 1 player UltraTech ULTC.NS in 2024, did not respond, and neither did Shree Digvijay, ONGC or the CCI.

The cement companies have been asked to respond to the report and the watchdog will then issue a final order within months. It has powers to drop any of the investigation findings, but fines can go as high as three times the companies' profit or 10% of their turnover for each year of wrongdoing.

In fiscal year 2024-25, Dalmia Bharat recorded annual revenues of $1.5 billion, Shree Digvijay $79 million and India Cements $444 million.

'SUPPORTED BY THE NUMEROLOGY FACTOR OF 7'

While Apple, Amazon and other foreign firms have faced intense antitrust scrutiny, the cement case highlights CCI's focus on big Indian firms from key economic sectors.

"Tech cases have been a growing focus for CCI but there is increased cognizance within the government to tackle breaches at state-run firms and in public procurement," said Gautam Shahi, a competition law partner at Indian law firm Dua Associates.

In January, Reuters reported an antitrust investigation found four major Indian steelmakers, including Tata Steel and JSW Steel, colluded on prices.

Before filing the case in 2020, ONGC noticed bids had come in at the exact same or very similar pricing in four tenders for oil well cement.

For example, the 2018 tender for 170,000 tonnes of cement saw all three companies quoting a price of 7,000 rupees, or 7,350 rupees per tonne with taxes, for different states.

That prompted ONGC to issue a warning in late 2019, with a notice to India Cements, contained in the report, saying the identically priced bids suggested violation of competition law.

India Cements defended its bid in a written submission on its letterhead to ONGC that year, citing global trends as well as the "lucky number".

"The financial bid was also supported by the numerology factor of 7", the company letter stated.

SUBMITTING BIDS TOGETHER

The CCI's investigation puts the onus of breaches on eight top executives including former managing director of Shree Digvijay, Rajeev Nambiar; billionaire chairman of Dalmia Bharat, Y.H. Dalmia; and former managing director of India Cements, N. Srinivasan, who is also one of India's high-profile business figures. None of the executives responded to Reuters queries.

The CCI also cited Shree Digvijay senior vice president Prem R. Singh, whose testimony said "the prime objective for quoting the identical price was to allocate almost equal volumes and revenue amongst companies".

Singh visited rival Dalmia's office for "directly assisting" them in their tender filing in 2018, the CCI report said, citing messages sent by Singh to Nambiar, his then managing director. Singh did not respond to requests for comment.

Shree Digvijay and Dalmia were "actively involved" in calculating the rail freight distance of their factories from ONGC cement delivery destinations. They then bid accordingly to avoid competition and divided territories amongst themselves.

Excel sheets were also made comparing distances to decide "volume sharing" among rivals, the report showed.

TARGETING FOREIGN FIRMS

Shree Digvijay and Dalmia also targeted foreign firms who bid by flagging "prickly issues", said the report.

They repeatedly filed complaints with the Indian government about foreign bidders' lack of certification and how New Delhi should promote domestic firms over foreign ones.

Foreign bidders included Texas-based Schlumberger, the world's largest oilfield services provider now known as SLB SLB.N, UAE-based Classic Oil Field Chemicals, and Bell Weather, the report showed. The three companies did not respond to queries.

The investigators concluded that the companies tried at least once to pressure ONGC to cancel foreign bids by deciding to "restrict supply" of cement to the oil explorer, which breaches antitrust laws.

In 2019, one executive wrote to another: "Need your support in making them (ONGC) understand that they cannot throw Indian parties in bath tub."

The companies could "not digest the fact that a foreign bidder" can be awarded a tender, the CCI said.

(Reporting by Aditya Kalra; Editing by Sam Holmes)

((Email: aditya.kalra@tr.com; X: @adityakalra;))

By Nidhi Verma

NEW DELHI, March 5 (Reuters) - India's state-run Hindustan Petroleum Corp has resumed purchase of Russian oil after a gap of three months, buying two cargoes for arrival later this month, two sources familiar with the matter said.

The refiner placed an order for two aframax tankers carrying Russian oil before the U.S. and Israel launched strikes on Iran on February 28, the sources said.

HPCL purchased the oil from a trader at a discount of around $13 per barrel to dated Brent on a delivered basis, the sources said.

HPCL did not immediately respond to a request for comment and has not commented previously on why it stopped buying Russian oil.

India's imports of Russian crude fell to about 1.1 million barrels per day in January, the lowest since November 2022, as New Delhi sought relief from U.S. tariffs, pushing Moscow’s share of overall oil imports down to 21.2%, industry data showed.

However, a source said on Wednesday that the share of Russian oil could climbed back to around 30% in February.

(Reporting by Nidhi Verma. Editing by Mark Potter)

((nidhi.verma@thomsonreuters.com; X: @nidhi712;))

SINGAPORE, March 4 (Reuters) - For tenders of crude and other oil products, please click:

Crude CRU/TENDA Naphtha NAP/TENDA Gasoline MOG/TENDA Jet/Diesel MDIS/TENDA Fuel Oil FUEL/TENDA

(Reporting by Jeslyn Lerh; Editing by Ronojoy Mazumdar)

((jeslyn.lerh@thomsonreuters.com))

SINGAPORE, March 3 (Reuters) - For tenders of crude and other oil products, please click:

Crude CRU/TENDA Naphtha NAP/TENDA Gasoline MOG/TENDA Jet/Diesel MDIS/TENDA Fuel Oil FUEL/TENDA