India In-Focus — Coal mines allowed to hike output; Ola chief says e-scooter fires are ‘rare’ but ‘might’ happen

The Indian government is forcing utilities to step up imports and Coal India to ramp up production (Shutterstock)
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Updated 11 May 2022
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India In-Focus — Coal mines allowed to hike output; Ola chief says e-scooter fires are ‘rare’ but ‘might’ happen

MUMBAI: India’s environment ministry has allowed coalmines with clearances to step up production by up to 50 percent, without seeking feedback from locals, it said in a memo reviewed by Reuters.

The decision was taken after a request from the coal ministry which pointed to “huge pressure on domestic coal supply in the country,” the ministry said, in a memo dated May 7, adding that the “special dispensation” will be valid for six months.

India is also planning to reopen more than 100 coalmines previously considered financially unsustainable, as the worst power crisis in over six years driven by a scorching heatwave forces the world’s third-biggest greenhouse gas emitter to double down on the fuel, after months of low consumption.

The projects “shall be granted expansion environmental clearance to increase their production capacity to 50 percent of original capacity within the same mine lease area, without requiring revised environmental impact assessment report for additional capacity and public consultation,” the memo read.

Demand for coal has risen due to post-pandemic economic recovery and an unrelenting heatwave. The government is forcing utilities to step up imports and Coal India to ramp up production to address supply shortages.

India’s Ola Electric chief says e-scooter fires rare but can happen

There may be more fires in electric scooters in the future, but such incidents are very rare, the chief executive of India’s Ola Electric said at a private company event, after safety concerns were heightened by a fire in one of its scooters in March.

“Will there be occurrences in the future, there might be,” CEO Bhavish Aggarwal replied, when asked a question about the fires at a private event on Sunday.

“But our commitment is that we will make sure we analyze every issue, and if there are fixes to be done we will fix them,” he said, according to a recording from the event reviewed by Reuters.

He described the fires as being “very rare and isolated” in a recording from the event, at which the company previewed a new operating system for its e-scooters.

Ola’s e-scooter fire was among a spate of similar recent incidents that triggered an uproar on social media and an investigation by the Indian government.

The company, backed by Japan’s SoftBank Group, has recalled more than 1,400 e-scooters and appointed external experts to investigate the cause.

 

(With inputs from Reuters) 


US pump prices surge as Iran war upends global energy supply

Updated 53 min 59 sec ago
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US pump prices surge as Iran war upends global energy supply

  • Fuel prices jump over 10 percent as oil prices surge
  • Analysts predict further price rises due to market conditions

MARIETTA/NEW YORK : US retail gasoline and diesel prices are soaring as the US-Israel war with Iran constrains oil and fuel exports, which could be a political test for President Donald Trump’s Republican Party ahead of midterm ​elections in November.
Fuel prices jumped more than 10 percent this week as oil rose above $90 a barrel, its highest in years, adding pain at the pump for consumers already strained by inflation.
Trump on Thursday shrugged off higher gasoline prices in an interview with Reuters, saying “if they rise, they rise.”
The president had vowed to lower energy prices and unleash US oil and gas drilling during his second term, but much of his tenure has been marked by volatility and uncertainty amid shifts in policies like tariffs and geopolitical turmoil.
The US is the world’s largest oil producer. It is a major exporter but also imports millions of barrels a day since it is the world’s largest oil consumer.
As of Friday, the national average prices for regular gasoline stood at $3.32 a gallon, up 11 percent from a ‌week ago and ‌the highest since September 2024, according to data from the motorists association AAA. Diesel was at $4.33, ​up ‌15 percent ⁠from a week ​ago, ⁠surging to the highest since November 2023.

Midwest, south feel the pinch
US motorists in parts of the Midwest and the South, including states that supported Trump, have seen some of the steepest increases in fuel costs since the conflict in Iran started.
In Georgia, a swing state, average retail gasoline prices rose 40.1 cents a gallon over the past week, according to fuel tracking site GasBuddy.
Andrenna McDaniel, a health care insurance worker in South Fulton, Georgia, said she was surprised to see prices skyrocket overnight.
“They jumped up so quickly,” she said on Friday, adding that she does not agree with the war at all.
McDaniel, a Democrat, said that for now she is only driving for the most important things, ⁠and feels lucky that she works from home so she does not have to drive as ‌much as other people do. Georgia voted for Donald Trump in the 2024 election.
Trump voter ‌Richard Soule, 69, a US Air Force veteran and a retired firefighter, said ​a little pain at the pump is worth Trump’s efforts to ‌protect America.
“When President Trump went in there and bombed out their nuclear, and they just thumbed their nose at it, ‌I believe he did the right thing at the right time,” Soule said on Friday as he filled up his Ford F-150 truck in Marietta, Georgia.
Other states, including Indiana and West Virginia have seen prices rise by 44.3 cents and 43.9 cents, respectively.

Prices may rise further
More pain may be on the way, analysts said, as oil prices continue to trend upward. On Friday, US oil futures settled at $90.90 a barrel, up nearly $10 and ‌the biggest single-day rise since April 2020.
“Given current market conditions, the national average price of gasoline could climb toward $3.50 to $3.70 per gallon in the coming days if oil continues rising and supply ⁠disruptions persist,” GasBuddy analyst Patrick De ⁠Haan said.
The disruptions in the Middle East and the Strait of Hormuz, a key trade conduit, have boosted demand for US oil abroad, which in turn has driven up prices for domestic refiners too.
“The US has weaned itself off of its dependence on Middle Eastern crude, but obviously Asian refineries, and to a lesser extent, European refineries have not,” Denton Cinquegrana, chief oil analyst with OPIS. “That’s what you’re seeing happen in the spot market, because the demand for US exports rise, and so the price rise.”
Seasonal factors could add further pressure. Gasoline prices typically go up in the spring and peak in the summer due to higher gasoline demand and production of summer-blend gasoline, which is more costly to produce. Diesel fuel saw an even more aggressive jump since Iran began retaliating against US and Israeli strikes, significantly disrupting shipping in the Strait of Hormuz.
Global diesel inventories have remained in tight supply due to heavy demand for heating and power generation during a prolonged winter in the US and other parts of the world and a structural tightness of refining ​capacity. Sticker prices of everything from food to furniture go up ​when the cost of diesel goes up, as the fuel is mainly used in freight transportation, manufacturing, agriculture, and global shipping, analysts said.
“In a world where buzzword seems to be ‘affordability’, that is certainly not going to help,” Cinquegrana said.