Media reports suggest that the government's move to create dual-pricing system in the diesel market has created leakages with bulk buyers turning to retailers for taking advantage of lower prices. While oil marketing companies (OMCs) are allowed to charge market-determined price for bulk diesel buyers, they must charge a subsidised
Tag: OMCs
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OMCs unsure on cash transfer for cylinders
State-run Oil Marketing Companies (OMCs) in Hyderabad and Ranga Reddy districts seem to have no clarity on how the cash transfer will take place for subsidized cylinders. Some industry sources feel that the finance ministry will transfer the amount to the respective oil companies who will then reimburse the amount in the individual bank acco
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OMCs unsure on cash transfer for cylinders
State-run Oil Marketing Companies (OMCs) in Hyderabad and Ranga Reddy districts seem to have no clarity on how the cash transfer will take place for subsidized cylinders. Some industry sources feel that the finance ministry will transfer the amount to the respective oil companies who will then reimburse the amount in the individual bank acco
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Petrofed warns against shifting to export parity pricing
The Petroleum Federation of India (Petrofed), an apex body of entities in hydrocarbon sector, warned the union finance ministry against its proposed norm for calculation of under-recoveries of state-run oil marketing companies (OMCs). Recently, the finance ministry proposed that the export parity price should be considered for calculating under-recoveries of OMCs instead of the present trade parit
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Private firms eye bulk diesel sale market
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
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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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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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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