Public sector oil marketing companies (OMCs) hiked petrol prices by 70 paise per litre and diesel by 50 paise considering the increase in the international crude oil prices. But pump prices will vary from city to city depending on state and local taxes. Oil firms pointed out that the international price of petrol rose from $117.19 per barrel to $120.05 per barrel. The rupee-dollar exchange rate however, has marginally appr
Tag: oil marketing companies
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OMCs raise petrol price 4th time in 6 wks
On the backdrop of the depreciation of rupee against dollar, state-run oil marketing companies (OMCs) raised the price of petrol by a steep Rs 1.55 a litre, excluding local sales tax or VAT. According to the traditional price revision cycle, the change in the petrol price should be effective from July 16. But it was raised a day earlier. The hike, which is the fourth time in six weeks, comes as the falling value of rupee against the dollar incre
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Under-recovery set to rise to Rs 1.5 trillion
According to government sources, under-recovery on the sale of fuel products by state-run oil marketing companies (OMCs) at subsidised price may be around Rs 125,000 crore and Rs 150,000 crore in 2013-14. This estimate is sharply higher than the government's earlier estimate of Rs 80,000 crore because of a considerable depreciation of rupee and the marginal rise
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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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OMCs oppose finance ministry proposal on pricing method
Public sector oil marketing companies (OMCs) like Indian Oil (IOC) opposed the proposal of the finance ministry to adopt export pricing method for calculating under-recoveries on cooking gas and diesel. State-run OMCs argue that if the finance ministry's proposed formula for subsidy sharing is accepted, they stand to lose out on compensation and it will also impact their investment and expansion plans
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OMCs to buy dollar from state-run banks
In order to contain volatility in rupee exchange rate, state-run oil marketing companies (OMCs) agreed to buy dollars for importing crude oil from a single public sector bank. This follows the direction by Reserve Bank of India (RBI) to these companies to use a special window for buying dollars
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RBI may take steps to arrest rupee weakness
Some market analysts expect Reserve Bank of India (RBI) to take steps to arrest further depreciation of rupee against the dollar. In order to meet the demand for dollar to import crude oil by oil marketing companies (OMCs), RBI may look at opening a special window from where these firms could buy dollars. A large part of demand for dollar comes from OMCs and if this demand is eliminated from the m
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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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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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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