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
Tag: under recovery
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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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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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Majority of developing countries subsidise fuel products
A study by World Bank shows that about two-thirds of the developing countries (considered in the study) have kept domestic prices of one or more petroleum products below market-clearing levels in the past three years. It adds that with the additional burden sharing by the oil and gas companies included, fuel subsidies amount to about 2
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Moody’s raises concern on IOC’s debt level
Moody's Investors Service warned about the record high level of borrowing of State-run refiner Indian Oil Corp and said its debt partially offset the improvement in margins of the company during October-December 2012 quarter. The company's borrowings at end-2012 increased to Rs 94,900 crore as against Rs 75,400 crore as of March 201
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Moody’s raises concern on IOC’s debt level
Moody's Investors Service warned about the record high level of borrowing of State-run refiner Indian Oil Corp and said its debt partially offset the improvement in margins of the company during October-December 2012 quarter. The company's borrowings at end-2012 increased to Rs 94,900 crore as against Rs 75,400 crore as of March 201
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Brokerage expects progressive hike in fuel prices
In a recent research note, securities firm Angel Broking said it expects the government to raise diesel prices progressively during the calendar year 2013 and 2014. This may reduce subsidy burden for state-run oil marketing companies (OMCs) and upstream oil companies, the note said. The brokerage further said that the recent hike in diesel price was in line with its expectations as government had permitted OMCs to make small price hikes in prices of dies
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Brokerage expects progressive hike in fuel prices
In a recent research note, securities firm Angel Broking said it expects the government to raise diesel prices progressively during the calendar year 2013 and 2014. This may reduce subsidy burden for state-run oil marketing companies (OMCs) and upstream oil companies, the note said. The brokerage further said that the recent hike in diesel price was in line with its expectations as government had permitted OMCs to make small price hikes in prices of dies