(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: Financial Times)

Reducing America’s reliance on oil by raising petrol prices to European levels through increased taxes or regulation is not politically feasible, says Steven Chu, US secretary of energy.

The admission comes as Congress considers a cap- and-trade system that opponents say will substantially increase petrol prices just as oil prices soar to their highest level in six months.

In the past Mr Chu, a Nobel laureate, has argued that, if the US wanted to reduce its carbon emissions, policymakers would have to find a way to increase petrol prices to levels in Europe. But in an interview on Wednesday with the Financial Times, Mr Chu said: “At this moment, let me be frank, it is not politically feasible.”

(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.”

On Friday, June 19, America 2050 will be co-hosting the next “Rebuilding and Renewing America” forum, focused on infrastructure strategies for the Southwest Megaregion, encompassing Southern California, the Las Vegas metropolitan area and Baja California.    The forum will aim to build support for a national infrastructure plan needed for America to respond to the big challenges of rapid population growth, our dependence on foreign oil, climate change, global competitiveness, and deteriorating infrastructure, and identify the major transportation, energy and water infrastructure priorities in the Southwest Megaregion that are issues of national significance. 

Likewise, we hope to find common ground among metropolitan areas in the Southwest Megaregion on programs and policies that would help regions and subregions meet their core infrastructure challenges.  The forum marks the first major convening of the west coast office of America 2050, housed at the USC Bedrosian Center. The forum aims to establish a network of business, civic, government and academic organizations through the America 2050 west coast office who will continue to work on building the Southwest Megaregion and pushing its collective agenda.    

The forum will take place at the Davidson Conference Center on the campus of the University of Southern California in Los Angeles on Friday, June 19 from 8:00am to 3:30pm. There is a fee of $25.00 to attend.  Register online here.

(Source: The Brookings Institution)

The Obama administration’s move to increase vehicle fuel economy standards and reduce greenhouse gas emissions addresses the source of one-third of U.S. CO2 emissions—transportation. In this report, the authors analyze the current state of carbon emissions by metropolitan area, listing the places that emit the least per capita and proposing policy avenues to move the entire nation toward reduced climate impact.   

America’s Challenge

The nation’s carbon footprint has a distinct geography not well understood or often discussed. This report quantifies transportation and residential carbon emissions for the 100 largest U.S. metropolitan areas, finding that metro area residents have smaller carbon footprints than the average American, although metro footprints vary widely. Residential density and the availability of public transit are important to understanding carbon footprints, as are the carbon intensity of electricity generation, electricity prices, and weather. 

Limitations of Existing Federal Policy
Numerous market and policy distortions inhibit metropolitan actors from more aggressively addressing the nation’s climate challenge. Economy-wide problems include underpriced energy, underfunded energy research, missing federal standards, distorted utility regulations, and inadequate information. Policy impediments include a bias against public transit, inadequate federal leadership on freight and land-use planning, failure to encourage energy- and location-efficient housing decisions, and the fragmentation of federal transportation, housing, energy, and environmental policies. 

A New Federal Approach
Federal policy could play a powerful role in helping metropolitan areas—and so the nation—shrink their carbon footprint further. In addition to economy-wide policies to motivate action, five targeted policies are particularly important within metro areas and for the nation as a whole:

• Promote more transportation choices to expand transit and compact development options
• Introduce more energy-efficient freight operations with regional freight planning
• Require home energy cost disclosure when selling and “on-bill” financing to stimulate and scale up energy-efficient retrofitting of residential housing
• Use federal housing policy to create incentives for energy- and location-efficient decisions
• Issue a metropolitan challenge to develop innovative solutions that integrate multiple policy areas

Click here to Read/Download Full Report

(Source: The Infrastructurist)

Our friends at The Infrastructurist compiled the national results from that study and compare them with the demographics of transit systems in three U.S. cities: Washington, D.C., Portland, Oregon, and San Francisco (well, the Bay Area). The snapshot offers an intriguing insight into which Americans choose not to drive to work.

If FTA can spend a bunch of money on such a compilation for the entire US,  that would greatly benefit many of our professionals engaged in transportation planning & policy research.  An analysis on the issue of social equity and its underpinning to transportation alternatives would be very helpful to say the least as the country’s demographics has undergone a signficiant shift in the past decade or two.

(Source: earth2tech via Reuters)

Cities have thrown down the gauntlet for electric car charging in recent months, and utilities are increasingly eager to tout infrastructure efforts. Among automakers, the Renault-Nissan Alliance has been out in front working to coordinate governments, utilities and charge station companies to develop regional networks of hardware and services that drivers will need to make the automakers’ upcoming electric cars practical for daily use. But what steps follow a big partnership announcement, after a utility, a vendor or an automaker says it’s done a deal to ready the power grid for an EV rollout?

For at least one of the 26 partners that the Renault-Nissan Alliance has lined up so far — utility San Diego Gas & Electric — the vision for how to support plug-in vehicles at even a pilot scale is just beginning to take shape. In an interview last week, SDG&E’s Clean Transportation manager, Bill Zobel, gave us a glimpse of what the utility has accomplished so far, and what it has in the works.

At this point, Zobel said, the company is still in the process of assembling its internal team for the project. When that group is fully established next month, it will help develop milestones and oversee outreach to customers and “integration across the broader utility.” By September, SDG&E aims to have commitments from fleet operators in the San Diego area to trial at least 100 electric cars coming from Nissan next year. Zobel said the University of California, San Diego is “ecstatic” about the program. The city and county of San Diego, several nearby cities and the U.S. military may also sign up to try the vehicles. SDG&E plans to have at least 15 of the cars in its own fleet.