Media reports suggest that private fuel retailers like Essar Oil, Reliance Industries (RIL) would attempt to grab the share of the bulk diesel customer market after the government de-regulated pricing in the segment. The government allowed oil marketing companies (OMCs) to charge market price for bulk customers of diesel, that include railways, industrial users and State Trans
Tag: fuel
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Private refiners reduce export to cater to domestic demand
Reports suggest that private sector oil refining firms like Essar Oil have reduced export of diesel recently in order to cater to the rising demand in the domestic market. Diesel is used in the industrial, agricultural and transport sectors in the country. For example, Essar Oil has reportedly offered only one d
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Ministry wants to cut subsidy bill by changing pricing formula
Union finance ministry wants the oil marketing companies (OMCs) to calculate under-recoveries from sale of fuel products based on export parity price rather than the presently followed import parity price. The ministry wants OMCs to discontinue import parity price because the 2.5 per cent customs duty was adding to the under-recoveries of the state-run oil marketing companies without contributing any revenue to th
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Demand for auto gas rises in recent months
Reports suggest that demand for auto gas or auto liquefied petroleum gas (LPG) has risen in the last few months. Oil Marketing Companies (OMCs) say the upswing in auto LPG growth augurs well for both the consumers and oil companies. OMCs attribute the rise in demand for auto gas to the governmentÂ’s decision to cap the number of subsidised LPG cylinders per
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Bulk users worried over sharp rise in diesel price
Bulk diesel users across different states are crying fowl over the government's move to allow oil marketing companies (OMCs) to charge market prices for these consumers. In order to reduce the fuel subsidy burden, the central government recently allowed OMCs charge mark
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OMCs deny cartelisation in oil industry
State-run Oil Marketing Companies (OMCs) deny the allegation that they form cartel while changing petrol or diesel prices. Competition Commission of India (CCI) is studying the allegation and is expected to come out with its obse
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TN govt urges centre to withdraw dual pricing of diesel
In a recent letter to the Prime Minister, the Tamil Nadu Chief Minister J Jayalalithaa asked the centre to withdraw the decision on dual pricing of diesel, which she terms as "ill-conceived, ill-timed". Jayalalithaa warned in the letter that if the centre does not hear the stateÂ’s request, the state government has no other option, but to approach the Supreme Court for
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Govt gets request for payment of Rs 500 bn subsidy
Government received a written request from the state-run oil marketing companies (OMCs) to pay Rs 25,000 crore for the first six months and Rs 25,000 crore for the third quarter of 2012-13. The compensation is towards the under-recovery incurred by the OMCs during the year for selling petroleum products below cost. So far, the companies have
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Minister hints at full de-regulation of diesel prices
Some media reports quoted Petroleum Minister Veerappa Moily as saying that the government would allow oil marketing companies (OMCs) to charge market price for all consumers in another 24 months. It may be noted that recently, government allowed these firms to charge market price for only bulk cons
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Transport sector accounts for 65.3% of diesel consumption
Data from the union petroleum ministry shows that almost 65.3 percent of the total diesel consumed in India is for transportation with road transport itself accounting for 60.4 percent. Around 8.2 percent of the total diesel consumed goes to power generation, while agriculture uses up 12.2 percent