Union oil ministry is in favour of revising the price of natural gas on a quarterly basis as against the monthly revision suggested by the Rangarajan Committee. The ministry feels that the government may have to rely on limited sources for computation of the price if it is notified every month. This is because the ministry has to accommodate and reconcile price data from multi
Tag: price
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OMCs raise petrol price 2nd time in June
Considering the weakening of the Indian currency against the dollar, state-run oil marketing companies (OMCs) raised the price of petrol by Rs 2 a litre recently. This is the second increase in the price of the auto fuel this month as the cost of crude oil import has risen following the depreciation of rupee. On June 1, OMCs raised price of petrol by 75 paisa, excluding VAT
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India to have over 50 mn t LNG re-gassification capacity
Union Oil Minister M Veerappa Moily informed that India may have LNG re-gasification capacity of over 50 million tonne per annum by 2016-17 with a supply of 198 million standard cubic meters per day. Currently, India has 18.6 mn t of re-gasification capacity - 10 mn t terminal at Dahej and 3.6 mn t plant at Hazira in Gujarat and 5 mn t terminal at Dabhol in Maharashtra
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Govt to release compensation for state-run OMCs
Media reports indicate that the government may release about Rs 70 billion in six tranches of an equivalent amount every Tuesday to state oil marketing companies (OMCs) for under-recoveries during January-March period. State-run OMCs incur under-recoveries or revenue loss as they sell diesel, kerosene and cooking gas at subsidised price. The government compensates these firms for the under-recoveries every year
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Weakening rupee may prod OMCs to raise petrol price
Owing to the sharp depreciation of rupee against the dollar, Oil marketing companies (OMCs) may hike the price of petrol Rs 1.5-2 per litre, industry sources informed. In recent trading sessions, the Indian currency declined to a record low of 58.96 against the dollar because of global financial market developments. The weakening of rupee in the last four weeks caused Rs 20,000 crore of under-recoveries for state-run OMCs, medi
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Under-recovery on diesel sales rises
According to union oil ministry, the under-recovery incurred by oil marketing companies (OMCs) on sale of diesel at subsidised price for the second fortnight effective June 1 rose to Rs 4.87 per litre from Rs 3.73 per litre on May 16. However, under-recoveries towards PDS kerosene and domestic LPG declined to Rs 27.75 per litre (from Rs 27.93 per litre) and Rs 335.14 per cylinder (from Rs 378.38 per cylinder), respectively, the ministry said in a state
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Minister defends fuel price hike by OMCs
Union Petroleum and Natural Gas Minister Veerappa Moily defended the hike in petrol and diesel prices by state-run oil marketing companies (OMCs) citing high under-recovery. It may be recalled that OMCs hiked the prices of petrol by 75 paise and diesel by 50 paise per litre while effecting a Rs 45 cut in LPG cylinder price
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Minister hopes to control fuel subsidy at Rs 800 bn
Finance Minister P Chidambaram expressed confidence that the overall fuel subsidy burden during 2013-12 may not exceed Rs 80,000 crore. The finance ministry is relying on the partial de-regulation of diesel pricing, the cap on subsidised cooking gas (LPG) and export parity pricing to reduce its oil subsidy burden by at least 80 per cent. He said of the Rs 80,000 crore, government has Rs 2
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Ministry to pay Rs 450 bn compensation to OMCs
Union finance ministry agreed to pay Rs 45,000 crore to state-run oil marketing companies (OMCs) for incurring losses on sale of diesel, kerosene and cooking gas at below market price. The Rs 45,000 crore is in addition to the Rs 55,000 crore already paid to the OMCs as compensation for under-recoveries. Thus, for the financial year 2012-13 as a whole, the government will pay Rs 100,000 crore to stat
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Investors take cue from US jobs data
Nymex crude oil futures was trading around $95.02 a barrel while Brent North Sea crude for July delivery was hovering around $103.63 in recent trading sessions. Traders reduced their long position in crude oil futures following weak unemployment data and housing data in the US. Recent data showed initial jobless claims, a sign of the pace