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
Tag: pricing
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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
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Govt subsidy may rise under pricing formula of panel
According to some estimate, government will have to bear an additional subsidy burden of Rs 28,800 crore if it implements the Rangarajan committee formula for pricing natural gas. The committee, set up under Prime Minister's Economic Advisory Council Chairman Rangarajan, suggested a price formula which is the mean of the prod
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Govt may restart IOC stake sale
Reports suggest that the government may restart the process of divesting its stake in Indian Oil Corporation following the considerable rise in the share price of oil companies in recent trading sessions. In 2010, the government deferred its plan to offload 10 percent (of its 78.92 percent) stake in Indian Oil because of poor market condition
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Weak pricing power may have hit profitability of steel firms
Weak pricing power and high cost of raw materials may have eroded the profitability of many steel makers in India, some brokerages feel. Despite high cost of raw material, domestic steelmakers are unable to raise prices because of subdued demand. Therefore, analysts expects steel firms to a
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NMDC board may revise price or ore next month
Agency reports suggest that the board of NMDC would meet on in the first week of February in order to review the price of iron ore. Industry sources expect the firm to raise prices for February given that ore price at the international market is rising considerably. From $90 a tonne in last September, iron ore price has
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Panel suggests production-linked deals
In order to overcome problems associated with the cost-recovery contracts in oil and gas exploration sector, a high level panel recommended the government to adopt production-linked contracts wherein companies would be chosen based on the amount of output they are willing to share with the government. The committee, under the PM's Economic Advisory Council ( PMEAC) Chairman C Rangarajan, proposed a mod
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Panel suggests annual revision of gas price
A committee headed by C Rangarajan, Chairman of the Prime MinisterÂ’s Economic Advisory Council (PMEAC), suggested an annual revision in the price of natural gas produced in the country. The revision should be based on monthly moving average of net back price for producers of Indian LNG and the other volume weighted price of USÂ’s Henry Hub, UKÂ’s
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Finance panel to study pricing of utilities
Former RBI Governor YV Reddy would head the 14th Finance Commission, which was set up by the government to study the pricing of public utilities, disinvestment, GST compensation, sale of non-priority PSUs and subsidies. The panel would submit its report by October 31, 2014 and its recommendations would apply for the period
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KPMG to work on pricing plan for NMDC
Consulting firm KPMG would work on the pricing mechanism for iron ore supplied by NMDC to steel companies in the country. The country's largest iron-ore producer has hired KPMG to devise a pricing mechanism following complaints by steel companies that NMDC is overcharging them. Media reports suggest that the new pricing mechanism may be implemented