Media reports indicate that the government may spare domestic cooking gas from the trade-parity pricing methodology that it proposes to adopt for calculating under-recoveries on fuel products. Thus, the government would calculate under-recoveries incurred by state-run oil marketing companies (OMCs) based on export parity price for diese
Tag: fiscal deficit
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RBI Governor supports moving towards panel structure
Reserve Bank of India Governor Duvvuri Subbarao said India must move towards a monetary policy committee structure. Subbarao said this in reply to a question following a speech at the Bank of Mauritius, which has such a committee in place. The governor said RBI must have more independence in order to have a monetary policy committee
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Banks may not cut lending rates soon
Banks in the country may not be able to cut lending rates soon in response to the 25 basis point reduction in the policy repo rate by the Reserve Bank of India (RBI) in its monetary policy review on Mach 19. Banks may not be able to reduce lending rate because doing so would reduce their net interest margin when deposit rate is high. Banks cannot reduce deposit rate at a time when they are trying to attract more depo
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Some analysts expect RBI to cut policy rate
The slowdown in economic growth and the government's commitment to reign in fiscal deficit may prompt Reserve Bank of India (RBI) to cut policy repo rate by 25 basis points in its monetary policy review in mid-March. The central bank may partly base its decision on the government's efforts to deliver fiscal consolidation as exemplified by the progress in 2012-13 and presented in th
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Court directs OMCs not to open new outlets
Karnataka high court directed all state-run oil marketing companies (OMCs) not to open new retail outlets till it completes the heading of a petition filed by an dealers association. The Karnataka State Petroleum Dealers Welfare Association filed a petition with the court after OMCs kept
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Oil minister does not favour change in formula
Union Petroleum Minister M Veerappa Moily warned against the move by the Finance Ministry to change the subsidy calculation formula for state-run oil marketing companies (OMCs). The finance ministry has proposed to shift from trade parity pricing of petroleum products to export parity pricing (for the sake of computing under-recoveries
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Govt’s fiscal moves may influence RBI rate decision
In an interview to a news agency, Finance Minister P Chidambaram remarked that Reserve Bank of India (RBI) would take a decision on reducing policy rate after taking into consideration the fiscal moves of government. On March 19, the central bank would release mid-quarter review of monetary policy. Shifting its focus from infla
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RBI has limited room for policy easing
In an interview to a leading media, Reserve Bank of India (RBI) Governor D Subbarao remarked that the roon for monetary easing is limited over the next few months because of the outlook for inflation and outlook for growth. He said the central bank would take into account the fiscal consolidation measures and deficit projections by the finance minister in the coming Budget to decide on t
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Ministry agrees to release Rs 250 bn to state-run OMCs
Government agreed to release Rs 25,000 crore as compensation to state-run oil marketing companies - Indian Oil, Bharat Petroleum and Hindustan Petroleum-for selling diesel, cooking gas (LPG) and kerosene at subsidised prices. The finance ministry gave a comfort letter to the OMCs intimating its plan to release the amount. How
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Govt to remove diesel under-pricing by mid-2015
The present under pricing of diesel will be removed progressively by mid-2015," Planning Commission Deputy Chairman Montek Singh Ahluwalia said in his address at India Energy Congress recently. Recently, oil marketing companies (OMCs) were allowed to charge market price for bulk diesel consumers. Also, for retail users of diesel, the gove