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
Tag: under recovery
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Net profit of OIL India declines 34.5% in June quarter
During April-June 2013, the net profit of Oil India (OIL) declined 34.5 percent to Rs 609.08 crore or Rs 10.13 per share compared to Rs 929.93 crore, or Rs 15.47 per share in the year-ago period. Net profit of the firm declined during the quarter because net realisation fell to $45.88 per barrel from $53.78 in first quarter last
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Net loss of IOC declines to Rs 30.9 bn in June quarter
During Apr-Jun 2013-14, the net loss of Indian Oil Corporation (IOC) declined to Rs 3,093 crore from Rs 22,451 crore in the corresponding quarter previous year. The company managed to reduce its loss as it received compensation for selling fuel below market cost from the government
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OMCs raise petrol, diesel prices
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
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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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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
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State-run OMCs raise diesel, petrol prices
State-run oil marketing companies (OMCs) raised the price of diesel by 50 paisa per litre, the sixth increase in rates since January 2013, when the government allowed these firms to raise the price once every month. Government allowed state-owned OMCs to raise diesel prices by up to 50 paisa per litre every month till entire losses on the fuel are wiped out