While the resurgence in economy resulted in India joining the league of trillion-dollar economies, the global economy is expected to decelerate significantly in the second half of 2008, before recovering gradually in 2009 said Shri S. Behuria, Chairman, PetroFed and Chairman, IndianOil at the 7th Annual General Body Meeting of Petroleum Federation of India on August 8, 2008 at New Delhi. Adding to the woes of slowdown, inflation is mounting in both advanced and emerging economies, driven mostly by higher food and fuel prices, he added.  Global oil consumption, he said, grew by 1.1% in 2007 while oil production fell by 0.2%, the first decline since 2002.

The consumption of petroleum products in India recorded a year-on-year growth of 7% breaching a total of 129 million tonnes.  The insufficient pass-through of the global crude oil prices to the consumer continued to plague the Indian oil & gas industry, he added.  The prices of transport fuels in India, Shri Behuria said, correspond to international crude prices of US$ 66 per barrel.  The Oil Marketing Companies (OMCs) continue to lose almost Rs. six billion a day on fuel sales. Unable to match the artificial low retail prices of PSU OMCs, some Oil Marketing Companies in the private sector have begun closing down retail outlets, he added.

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

Shri Behuria welcomed the 12 entities who were admitted as members of the Federation during fiscal 2007-08 and said that three new members had been added during the current fiscal, taking the membership of the Federation to 58. 

The Annual General Body was informed by the Director General, Shri A. K. Arora that member company IndianOil was honoured at the recent 19th World Petroleum Congress at Madrid with the WPC Excellence Award 2008 in the Technical Development category where the other finalists in contention were Chevron, USA & Saudi Aramco.  The award was received by Chairman, IndianOil & Chairman, PetroFed, Shri Sarthak Behuria from the King of Spain at the inaugural ceremony.

The Director General complimented Tata Petrodyne Chairman, Shri M. A. Pathan for the entry of Tata Group company, Tata Steel in the Global Fortune 500 listing.

The General Body was informed by the Director General that the PetroFed Awards introduced last year had been received enthusiastically by the Industry.  The last date for receipt of applications for PetroFed 2008 Awards, he informed, is October 7, 2008 and requested members to submit applications at the earliest.

The Annual General Body passed a resolution adopting the Audited Balance Sheet and Profit & Loss Account of the Federation for the Financial Year ended March 31, 2008.  M/s Rakesh & Company, Chartered Accountants were also re-appointed as Auditors of the Federation until the conclusion of the next General Body Meeting.

Click to read Chairman’s address at the AGM.