(Source: Bloomberg & Wall Street Journal)

India may lift a 5 1/2-year cap on pump prices of gasoline and diesel, the first market-opening move by Prime Minister Manmohan Singh since his election victory this month. Shares of refiners surged.

Oil Minister Murli Deora said he plans to seek cabinet approval within six weeks to free up fuel prices from state control. “The government has taken notice and is working on” a proposal, he told reporters in New Delhi.“We will ensure that fuels reach people at the right time and at the right price,” Deora said today.

Indian state-owned refiners used to set retail fuel prices twice a month after the government ended controls on oil products in April 2002. That stopped in December 2003 after the then Bharatiya Janata Party-led government barred them from raising rates before the May 2004 elections.

Mr. Deora said the government would consider deregulating prices of natural gas only after a decision on deregulating oil prices is taken.

Indian Oil gained 6.8 percent to 609 rupees in Mumbai trading, the highest level since Jan. 17, 2008. Bharat Petroleum Corp., the second-biggest state-run refiner, climbed 3.7 percent to 464.70 rupees, while Hindustan Petroleum Corp. added 8.4 percent to 362.95 rupees.

Indian Oil shares have climbed 42 percent since Prime Minister Singh’s government was re-elected on May 16 without the support of communist lawmakers who oppose fuel-price increases. That led to speculation that the government will relax the pricing curbs. The benchmark Sensitive Index has gained 20 percent in the same period and advanced 52 percent this year.

State refiners sell automobile and cooking fuels below cost, at prices fixed by the government, to curb inflation which has held below 1 percent for 11 straight weeks. Retail fuel prices haven’t been changed since January, when they were cut for the second time in two months.

(Source: Automobile Magazine & Autoblog & CNN Money)

(Source: Times Online, UK)

Fiat has pulled out of talks with the German Government about Opel, blaming “unreasonable” funding demands, but emphasised that it was not withdrawing its bid for General Motors’ European unit, which owns Opel and Vauxhall.

Sergio Marchionne, Fiat’s chief executive, said that Germany had asked his car group to provide emergency funds for Opel, which would expose it to “extravagant risks”.

Mr Marchionne said “The last round of requests which would require Fiat, among other things, to fund Opel on an emergency basis while the German Government determines the exact timing and conditions of interim financing, would expose Fiat to unnecessary and unwarranted risks.”

Mr Marchionne said that he had not been granted full access to Opel’s financial records and so it was unreasonable to ask Fiat to provide emergency funds. Because today’s meeting will focus specifically on Opel, Fiat would not be attending, he said. However, he said that Fiat remained interested in a potential deal with GM.

“We remain committed to finding ways to bridge the expectations of both General Motors and the German Government, but the emergency nature of the situation cannot put Fiat in a position to take extravagant risks,” he said.

Gareth Thomas, the Trade Minister, will attend the emergency talks in Brussels today. A Commission spokeswoman said: “The aim of the meeting is to exchange information and ensure a level playing field for co-ordination.”

(Source: Autobloggreen & Royal Automobile Club Foundation)

A new study by the Royal Automobile Club Foundation found that as many as 6.75 million British drivers are thinking about or could consider buying an electric vehicle – once they become available, of course. RAC surveyed 1,000 motorists over two weekends this month and asked the question: “Would you consider or are you planning on purchasing an electric car within the next five years?” Twenty percent picked either “Yes, would consider” or “Yes, planning on purchasing an electric car.” We’re right there with you, says the UK government, which will offer incentives worth up to £5,000 for EVs starting in 2011.

Also, the RAC points out that 20 percent of 33.8 million drivers means there could be a lot of people who want but can’t buy an EV. They say, “The RAC Foundation has discovered that by the Government’s own reckoning electric vehicles won’t be available on the mass market until at least 2017, leaving millions of potential buyers frustrated.”

Commenting on the findings, the director of the RAC Foundation Professor Stephen Glaister had the following words:

• “What the Government is in danger of doing is putting the cart before the horse. It is actively promoting the purchase of electric vehicles long before there is any chance of manufacturers making them widely available.”
• “It has gone out of its way to encourage people to make green choices, yet these choices are not yet realistic.”
• “Ministers’ thinking on green technology is all over the place. They talk of incentives of up to £5,000 for prospective buyers of electric cars from 2011. Yet at that stage there will be almost nothing in the showroom for people to purchase.”
• “The RAC Foundation fully supports the introduction of green vehicles. But electric cars are not the short-term solution. What the Government should be doing is improving the road network and encouraging manufacturers to refine existing technology. That means increasing road capacity to cut congestion and CO2 emissions; focussing on producing leaner petrol and diesel engines; and making smaller and lighter cars.”

(Source: TreeHugger; HuffingtonPost & Bike Europe)

While news of the four-wheel variety remains bleak with news that GM is on the brinkof bankruptcy, news for the two wheel set is mostly good. In fact, more bicycles were bought in the first quarter of 2009 than cars and trucks. Dennis Markatos @ HuffingtonPost points out, the news isn’t all good. Overall, bicycle sales are down 30 percent for the year, but the good news is that bikes are outperforming cars. In total, around 2.6 million bicycles were sold, compared to less than 2.5 million cars and trucks.  That doesn’t mean all is well for the American bicycle market and it is hard to say that bicycle sales are unfazed by the recession.  In units the Americans imported 1.1 million bicycles less this year. Remarkably the average value increased by 37.2% in the same period. The average FOB value now stands at US$ 96.60 against US$ 70.41 in 2008.

But that percentage drop is slower than the35+% drop in sales for cars and trucks. Since nationwide gasoline prices are now rising above $2.40 per gallon at the pump, we may see another wave of US residents shifting to bicycles for their everyday trips. The large savings from riding a bike over short distances rather than driving can help consumer confidence and support economic recovery.

(Source:  Stateline.org via Planetizen)

States are hoping to use federal stimulus money to add technological advancements to their streets and highways to create “smart” roads.

Not all the highway improvement projects states plan to pay for with federal stimulus money involve widening roads, fixing bridges or repaving highways. Nearly half the states plan to use some of their new funds to pay for high-tech gadgets that will reduce congestion, help the environment and create jobs quickly.

At least 22 states have told the federal government they want to make their roads “smarter” by installing traffic cameras, creating express toll lanes, improving traffic signals and alerting drivers about accidents or delays ahead, according to the National Conference of State Legislatures.Such projects are “quick, they can move forward very fast, they create jobs and they’re effective in the short and long term,” said Jaime Rall, an NCSL analyst.States are under the gun to tell the federal government how they plan to use $26.7 billion in federal stimulus money for transportation. They have until June 29 to commit half of that money to specific projects, so states are focusing on projects that can get started quickly.Three-quarters of the money committed by states so far will pave or re-pave roads. Some of the money can go to passenger and freight rail efforts, too.

The Obama administration announced earlier this week that another $1.5 billion in transportation stimulus money can be used for innovative road projects.But included in the mix already are dozens of efforts to use technology to make roads function better. The “smart road” improvements include signals for on-ramps in Colorado, new E-Z Pass toll booths to allow drivers to pay without stopping in Delaware and traffic lights connected to fiber optic cable to reduce bottlenecks in Utah.

Technology improvements, in particular, have a bigger bang for the buck for the economy, the federal government points out, because more of the money goes straight to workers’ salaries. Only 20 percent of material-intense projects such as laying roads or fixing bridges typically goes to payroll, according to a January analysis by the U.S. Department of Transportation. For technology upgrades, about 50 percent goes to paychecks.

(Source: Autobloggreen)

With rising gas prices and often limited mass transit options in the United States, car pooling is often an excellent option for many urban commuters. However, finding people to car pool with can be problematic as can sharing costs fairly. The “creepiness” factor has often played against the willingness of many interested commuters to consider this as a viable option, at least until now.

Image Courtesy: Carbuddy

That’s where CarBuddy.com comes into play. When you sign up with CarBuddy, you enter information about your start and end points and whether you prefer to ride, drive or both. CarBuddy matches you up with ride partners that you can select from.

Participants also provide information about the car being driven and CarBuddy calculates fair costs for the trip being taken. The costs are updated weekly and based on more than fuel prices. CarBuddy also factors in wear and tear and depreciation on the car being driven. Based on distance traveled, a cost is calculated for each participant and passengers are charged each week and drivers reimbursed. CarBuddy takes 8 percent off the top of the transaction to pay for its services. Users can cancel at anytime or even switch car pool partners if they want.

The company will also pay for a cab service up to four times a year in the event a passenger gets stranded.

(Source: Wheels Blog – NY Times & Autoblog)

Asia’s premier auto exhibition, the Tokyo Motor Show, held every other fall at the sprawling Makuhari Messe convention center, is still scheduled to take place Oct. 23-Nov. 4, but the cast of characters shrinks almost daily.  The exhibition has suffered in recent years with sales declines in the Japanese domestic market. Now, automakers around the world are experiencing sales and production slowdowns and are canceling plans for many new models.

Image Courtesy: Tokyo Motor Show

In fact, the display area for the 2009 show will be less than half of what it was in 2007, the last time the show was held. That show, in turn, was substantially smaller than the one in 2005. This year, the show is also being shortened by four days. Canceling the show entirely, J.A.M.A. said, would complicate its ability to revive it in future years.

(Source:  The Infrastructurist & Asia Times)

The Chinese are at it again.  The Asian juggernaut is rolling ahead with its investment in beefing its modern infrastructure – this time with a massive investment in railways.   With the dedication and determination that has become a hallmark of all things Chinese, be it sports or the development, the country has proved time and again that it is among the best in the world.  Dithering and doing things half-way are not among the national character flaws that might be pinned on the Chinese.  And, perhaps, they’re already at it with this plan to build the world’s largest high-speed rail network. 

China’s rail links totaled 76,600km by end of 2006. But most of them were built at least 30 years ago and some even date back to the early 20th century.   The economic boom of the past two decades has generated soaring demand for rail transportation. In 2006, China’s rail network handled 25% of the world’s cargo and passenger travel, although the country’s railway network only accounts for 6% of the world’s total by mileage. 

In 2006, China’s railway network carried 662.2 billion passenger-kilometers – 2.7 times that of Japan – while it carried 2.87 billion tons of freight, a billion tons more than in the US, and 4.8 times that in India.  To cope with the skyrocketing demand for rail transport, the Chinese government has kept expanding its plans for rail construction. As of March 31, China has committed $259 billion to building its high-speed rail network project, and plans to spend nearly a half trillion dollars more in the next three years, boosting the total investment to $730 billion by 2012.

Of the Chinese investment, at least $1 billion is going to the German conglomerate Seimens for the purchase 100 high speed train sets. They will be, on average, 16 cars–or 1300 feet–in length, capable of carrying 1000 passengers, and capable of traveling 218 mph. Moreover, they will be running on tracks designed to accommodate that speed. Unlike, say, the Acela.  Ultimately, the Chinese government plans to buy 1000 high speed trains to run on a track network of around 25,000 miles. 

A little context here: The US–a country with a per capita GDP about 16 times that of China–has set rail as a national priority and has committed… $13 billion. Or, about 2 percent as much in China. This, of course, is in a place where it costs a hell of a lot more to get anything done.   In the U.S., President Obama’s decision to make high-speed passenger rail service a centerpiece of his transportation agenda is funded in part through the recently passed $787 billion stimulus plan including a total of $8 billion for improvements in the U.S. rail system. The Obama plan also proposes a separate five-year, $5 billion investment in high-speed rail as part of the administration’s suggested fiscal year 2010 budget (FY10 budget outline) to make a down payment on constructing enhanced rail network.

(Source: Autobloggreen & Detroit Free Press)

It seems that calls from House Majority Leader Steny Hoyer (D-MD) and Senate Majority Leader Harry Reid (D-NV) to fast track the Cash-For-Clunkers bill through the legislative process may have fallen on deaf ears. According to the Detroit Free Press, the somewhat controversial bill will be tacked on the much broader Climate Change bill that’s currently being drafted by the House Energy and Commerce Committee.

 Ohio Rep. Betty Sutton’s amendment made it onto the American Clean Energy and Security Act, the legislation being marked up this week by the House Energy and Commerce Committee. Approved by a vote of 50-4, the amendment provides a voucher of up to $4,500 for trading in an old, lower mile-per-gallon vehicle to purchase a new one.

The measure wouldn’t favor domestic vehicles over those made by companies based overseas but it has incentives for trucks and sport-utility vehicles which could be of particular help to American automakers. President Barack Obama and key House Democrats agreed on the provisions contained in the amendment at a recent White House meeting.

U.S. Rep. John Dingell, a Dearborn Democrat and staunch advocate of domestic automakers, said the cash-for-clunkers amendment, if passed, “will result in meaningful reductions in vehicle fleet carbon emissions and fuel consumption, all while providing much-needed stimulus for our ailing automakers.”