India's State-owned fuel retailing oil company, Indian Oil Corp is to get cash payment for the fiscal first quarter subsidy from the government on September 17, the company's officials said on August 26. The Union government provides the subsidy to its fuel retailers-Indian Oil Corp, Hindustan Petroleum Corp (HPCL.NS) and Bharat Petroleum Corp (BPCL.NS) to sell diesel, kerosene and cooking gas at discounted rates to the poor and tame inflation.
Tag: cooking gas
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Govt to release remaining dues to OMCs
Media reports indicate that the government would release the remaining dues to state-run oil marketing companies (OMCs) towards the under-recoveries incurred by these firms while selling fuel products at subsidised price. Earlier, Prime Minister Manmohan Singh asked the finance ministry to pay Rs 45,000 crore as its share of subsidy for Jan-Mar 2013 quarter
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Oil ministry adopts finance ministry’s terms of reference
Reports indicate that the union petroleum ministry adopted the terms of reference proposed by the finance ministry for the committee set up under former Planning Commission member Kirit S Parikh. Originally, the oil ministry had proposed that the committee be asked 'to revisit the current pricing methodology of import parity or trade parity' for petro
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OMC underecovery on the rise due to rupee weakness
Media reports indicate that state-run oil marketing companies (OMCs) are incurring an under-recovery of Rs 8.60 for per litre sale of diesel because of the sharp depreciation in rupee. This may be compared to the under-recovery of just Rs 2.62 in March. Owing to the decline in the rupee value against dollar, losses on diesel rose to 8.60 per litre and after adding local sales tax or VAT, the desired increase in retail
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Weakening rupee may hit finances of OMCs
The financial position of state-run oil marketing companies (OMCs) may be adversely affected because of the depreciation of rupee against the dollar. Rupee's depreciation would put strain on the working capital of oil companies. Some reports indicate that the borrowing of oil companies, which was in the range of Rs 1.5 lakh crore, may rise further if they don't raise domestic fuel prices to compensate for the rise in import cost.
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State-run OMCs raise diesel, petrol prices
State-run oil marketing companies (OMCs) raised the price of diesel by 50 paisa per litre, the sixth increase in rates since January 2013, when the government allowed these firms to raise the price once every month. Government allowed state-owned OMCs to raise diesel prices by up to 50 paisa per litre every month till entire losses on the fuel are wiped out
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Govt made over 1 mn direct cash transfers for LPG
According to an official statement, the central government has made over 1 million (10 lakh) direct cash transfers to consumers' bank accounts under its Direct Benefit Transfer for LPG (DBTL) scheme, launched in 18 districts on June 1. The government has so far given Rs 41 crore of subsidy to consumers directly under the above scheme since June 1, the statement shows
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Weakening rupee may prod OMCs to raise petrol price
Owing to the sharp depreciation of rupee against the dollar, Oil marketing companies (OMCs) may hike the price of petrol Rs 1.5-2 per litre, industry sources informed. In recent trading sessions, the Indian currency declined to a record low of 58.96 against the dollar because of global financial market developments. The weakening of rupee in the last four weeks caused Rs 20,000 crore of under-recoveries for state-run OMCs, medi
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Govt to release compensation for state-run OMCs
Media reports indicate that the government may release about Rs 70 billion in six tranches of an equivalent amount every Tuesday to state oil marketing companies (OMCs) for under-recoveries during January-March period. State-run OMCs incur under-recoveries or revenue loss as they sell diesel, kerosene and cooking gas at subsidised price. The government compensates these firms for the under-recoveries every year
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Govt to prepare scheme for piped gas supply
Madhya Pradesh government would prepare a scheme in association with GAIL to start the supply of piped domestic gas to the residents of Bhopal-Mandideep. Recently, the state urban administration and development Minister Babulal Gaur discussed this project with the officials of GAIL. Bhopal city Mayor Krish