The Reserve Bank of India (RBI) will not hurriedly close a special window for oil marketing companies (OMCs) to buy dollars for crude oil imports, said the RBI Governor Raghuram Rajan on November 13. The RBI is striving bring stability in the currency market.
The under-recovery, or revenue loss, applicable on diesel for the second fortnight effective from September 16, has been rised upwards at Rs 14.50 per litre, the Union Petroleum Ministry has on on September 15. Oil marketing companies (OMCs) incurring higher daily under-recovery of Rs 486 crore daily crude oil price of Indian Basket remains steady at $110.68/bbl on last September 13.
The public sector oil marketing companies (OMCs) have said that they do not look for any direct gains from the Reserve Bank of India's foreign exchange swap window. Such window was announced by RBI on August 28. The RBI announced the window to meet their daily dollar requirements to import crude oil. But the oil companies agreed the apex bank's measure would bring down rupee's volatility.
The Indian rupee's brisk fall against the US dollar was halted on August 29 with the Reserve Bank of India's move to directly supply dollar swaps to oil marketing companies (OMCs). The Indian currency on the day appreciated 225 paise to close at 66.55 per dollar, logging its biggest single-day gain in percentage terms in 26 years.
To save the falling rupee, the Reserve Bank of India (RBI) will sell dollars to the government-owned oil marketing companies (OMCs) in the counry, said the RBI on August 28. Through a designated bank, the RBI will, with immediate effect, is to sell dollars to Indian Oil Corp (IOC), Hindustan Petroleum Corp (HPCL) and Bharat Petroleum Corp.
Union Minister of State for Petroleum & Natural Gas Panabaaka Lakshmi on August 27 told the Rajya Sabha that State-run oil marketing companies have reported a combined loss of Rs 4,403 crore in April-June quarter of the current financial year. But, the three marketing firms - Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp managed 'meager profits' in previous financial years only after factoring in cash compensations provided by the government and discount on crude oil offere
Under-recovery on sale of one litre of diesel rose to Rs 14 over the last couple from around Rs 7 earlier because of global rise in crude oil price and depreciation of rupee. The rising under-recovery would adversely affect state-run oil marketing companies (OMCs) like IndianOil, Bharat Petroleum Corporation and Hindustan Petroleum Corp
The Union Minister of Petroleum & Natural Gas Marpadi Veerappa Moily informed the Lok Sabha in a written reply recently that the government has further decided on last July 3 that Oil Marketing Companies (OMCs) will procure ethanol from domestic sources to achieve the mandatory requirement of 5 per cent ethanol blending with petrol by October, 2013 in areas/parts of the country where sufficient quantity of ethanol is available.
The continuing depreciation of rupee and the rise in global crude oil price may prompt state-run oil marketing companies (OMCs) to raise diesel and petrol price, reports indicate. While the global crude price rose to 108.5 per barrel recently, the Indian rupee rose up to 62 a dollar in recent session. In rupee terms, the crude price increased to Rs 6,68
The three state-run oil companies have paid Rs 15,000 crore as subsidy to public sector oil marketing companies (OMCs) for the Apr-Jun 2013 quarter. Of the Rs 15,000 crore, Oil and Natural Gas Corporation (ONGC) paid around Rs 12,300 crore, Oil India Rs 2,000 crore, and GAIL Rs 700 crore. It may be recalled that of the total under-recovery incurred by state-run OMCs, 40 percent is shared by the gov