The global economy recorded its 4 th consecutive year of over 4% expansion. This growth has been led by the developing world, with growth in real GDP expected to be 6.9% this year as against 3% of the developed world. China , India and Russia have spearheaded the global success story with the Indian economy growing at a robust 8.4% in 2005-06. Stating this at the 5 th Annual General Body meeting of Petroleum Federation of India on July 7, 2006 at New Delhi , Sh. S. Behuria, Chairman, PetroFed and Chairman, IndianOil added that investor confidence in India was at an all time high.

The world primary energy consumption in 2005, he said, increased by 2.7%, below the previous year's strong growth of 4.4% but still above the 10-year average. Global oil consumption grew by only 1.3% in 2005, he said, below the 10-year average and a sharp drop from the strong growth of 3.6% in 2004. India 's consumption of petroleum products achieved a marginal growth of only 0.3% during fiscal 2005, Mr. Behuria added.

The marginal increase in retail selling prices of petrol and diesel effective 6 th June brought some relief to oil marketing companies. The earlier retail selling prices, Mr. Behuria said, corresponded to an Indian crude oil basket price of US $ 51 per barrel which breached $ 71 per barrel in early May 2006. And the price continues to go up. PetroFed plea, he said, for reduction in Excise Duty on petrol and diesel and notification of HSD as ‘declared goods' has not found favour with Government. Nor has the request for issuance of bonds to stand-alone refineries. A decision is also awaited on the Rangarajan Committee recognition in February 2006 for an immediate interim increase of Rs.75 per domestic LPG cylinder.

There is potential for India to become a refining hub for export of clean fuels, Mr. Behuria said. Potential also exits in the area of petrochemicals. In the Indian energy scenario, he added, there is an urgent need to not only step-up crude oil production within the country and through equity oil abroad but also find alternative fuels and energy sources.

Mr. Behuria lauded the various initiatives taken by PetroFed in bringing to Government's attention a host of critical issues facing industry and focussing industry attention on emerging issues. He briefed the General Body on the various PetroFed actions underway.

Sh. Behuria advised the General Body that nine companies were admitted as members of the Federation during fiscal 2005-06 and five more had been approved for admission as ordinary members by the Governing Council on July 7, 2006 .

The Annual General Body passed a resolution adopting the Audited Balance Sheet and Profit and Loss Account of the Federation for financial year ended 31 st March 2006 . M/s. Nath & Mahesh Associates, Chartered Accountants were also re-appointed as auditors of the Federation until the conclusion of the next General Body meeting. The extension of the existing term of the Governing Council till October 15, 2008 and the re-appointment of Sh. S. Behuria, as Chairman, and Sh. P. Raghavendran as Vice Chairman, co-terminus with the term of the Governing Council, were also noted and endorsed by the General Body.

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