The government has finally slashed the prices of petrol and diesel by Rs 5 and Rs 2 a liter, respectively. Revised prices would be effective from midnight. The step would help to control the inflation rate and increase demand in the economic system. However, the margin of oil marketing companies would decline just as it was starting to improve due to the decline in crude prices in the international market. OMC are likely to suffer a revenue loss of Rs.6,000 crore in the current fiscal due to the recent price revision.
LONDON, Dec. 5 -- The International Energy Agency cut its projection for growth in worldwide oil consumption by 33 percent Friday.
The IEA had previously said oil consumption would grow about 1.5 million barrels a day from 2008-13. Friday, it scaled back the forecast to 1 million barrels a day through the same period, the Financial Times reported.
"For the first time since 1945 most (Organization for Economic Co-operation and Development) countries are expected to face a severe economic recession in 2009," the IEA said in a Medium-Term Oil Market Report. "By the same token, emerging economies are bound to slow down, even if managing to maintain positive growth rates."
NEW YORK, Dec. 5 -- Crude oil prices dropped Friday on the New York Mercantile Exchange with prices down more than 20 percent in the past week and headed toward $40 per barrel.
BRUSSELS, Dec. 5 -- The European Union has agreed to have 10 percent of its vehicle fuels sourced with renewable fuels by 2020 in spite of warnings from scientists.
Scientists have said that turning forests or grasslands into farmland to make up for acreage lost to biofuel production undermines the claim that biofuels is a clean source of energy, Deutsche Welle reported Friday.
But an agreement between the European Parliament, the European Commission and European Union member states, upholds the 10 percent target proposed in January, as the three parties agreed to count non-food source biofuels twice.
NEW YORK, Dec. 4 -- Crude oil prices dropped to less than $44 a barrel Thursday on the New York Mercantile Exchange, hitting its lowest closing price in 35 months.
The government has finally slashed the prices of petrol and diesel by Rs 5 and Rs 2 a liter, respectively. Revised prices would be effective from midnight. The step would help to control the inflation rate and increase demand in the economic system. However, the margin of oil marketing companies would decline just as it was starting to improve due to the decline in crude prices in the international market. OMC are likely to suffer a revenue loss of Rs.6,000 crore in the current fiscal due to the recent price revision. 
Tokyo - Nippon Oil Corp, Japan's largest refine
