"Oil marketing companies are to take decision depending on cost of their imports. It is market related as per as oil market companies are concerned on petrol," Mukherjee told reporters.
Cooking gas LPG price on Wednesday was hiked by Rs 15 per cylinder in line with a surge in international fuel prices. Rates of both subsidised and non-subsidised LPG prices were hiked, oil company officials said. Cooking gas now costs Rs 899.50 per cylinder in Delhi.
The fuel delivery scheme mainly targets consumers that buy in bulk.
With the government reducing the net worth for new entities in fuel-marketing space to Rs 250 crore, the market is open for new players like Total, Adani, and Saudi Aramco -- and even supermarkets - to open fuel outlets.
'I would not suggest buying these stocks in the dip, as the upside in profit is dented without a safety net for a rainy day.'
India has taken up the issue of high oil prices with producer nations and OPEC, demanding affordable rates, Minister of State for Petroleum and Natural Gas Rameswar Teli told the Lok Sabha on Monday. Petrol and diesel prices have shot up to record highs across the country after relentless price increases since early May. Petrol is retailing above Rs 100 a litre in more than a dozen states.
The Union government has collected Rs 94,181 crore through levy of excise duty on petrol and diesel in the first three months of the current fiscal on the back of a record tax on fuel that yielded 88 per cent higher revenue the previous financial year, the Lok Sabha was informed on Monday. Excise duty on petrol was hiked from Rs 19.98 per litre to Rs 32.9 last year to recoup gain arising from international oil prices plunging to multi-year low as pandemic gulped demand. The same on diesel was raised to Rs 31.8 from Rs 15.83 a litre, according to a written reply by Minister of State for Petroleum and Natural Gas Rameswar Teli in the Lok Sabha. This led to excise collections on petrol and diesel jumping to Rs 3.35 lakh crore in 2020-21 (April 2020 to March 2021), from Rs 1.78 lakh crore a year back, he said.
More than half of the total subsidy provisioning, amounting to 54 per cent, is going towards food subsidy, which is estimated at Rs 184,220 crore for 2019-20 - a 7.5 per cent increase over the revised estimates for 2018-19.
As the world's third-largest oil importer and consumer, India is running out of options as the relentless surge in international oil prices make it imperative to pass them on to consumers, officials said on Monday. India imports 85 per cent of its crude oil needs and about half of its natural gas requirement. While the imported crude oil is turned into fuels such as petrol and diesel, gas is used as CNG in automobiles and fuel in factories.
The dealers are protesting against the use of petrol pumps for government campaigns and seeking of personal data of over a million people working there
A special Central Bureau of Investigation court in Hyderabad on Friday remanded Mehfuz Ali Khan, personal assistant of mining baron and former Karnataka minister Gali Janardhana Reddy, to judicial custody till October 17 in connection with the Obulapuram Mining Company scam.
I admire Kejriwal's intelligence but pity the fact that he had to use all the ingenuity and scheming to achieve his revenue enhancement goal, says Sudhir Bisht.
This rule came after Prime Minister Narendra Modi's call to conserve oil in 'Man Ki Baat'
In Maharashtra, the oil industry had tenancy protection till 1999.
Since May 1, the dynamic fuel pricing model has been applied on a pilot basis in 5 cities
BPCL gained nearly 4% to Rs 674, while HPCL gained more than 2% to Rs 451.
OMCs are currently incurring daily under-recovery of Rs 230 crore.
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Investment can only be by prospective dealers.
OMCs losing Rs 20 crore daily on sales, 18 months after prices were deregulated.
A surge in international oil prices may translate into an increase in the retail selling price of petrol and diesel in India as oil companies face extreme margin squeeze, sources said. Petrol and diesel prices have remained unchanged for 12 days but now the international rate surge is exerting pressure. Current prices of petrol and diesel in the international market are higher by around $4-6 per barrel as compared to average prices during August. However, no increase in retail prices has been affected by oil companies so far, sources said.
One of the reasons is that the retail prices are not bench-marked to crude but their respective international benchmark prices.
India Inc is likely to post a whoping 63 per cent growth in net profit in the second quarter, thanks to four oil marketing companies which are expected to post a combined net profit of Rs 2,730 crore (Rs 27.30 billion) in the quarter ended September.
RBI's steps will prevent rupee from slipping, even if OMCs meet entire $ demand from market
If the market starts getting nervous about the political risk factor, currency depreciation could be a lot more severe and movement's jerky.
The permission right now is for delivery only for stationary usage. This limits the service to those who operate units like diesel generation sets.
The programme being outlined under the aegis of the ministry of heavy industries and public enterprises is part of the National Electric Mobility Mission Plan 2020.
All subsidies will be eliminated by March 2018
RBML - the joint venture of Reliance Industries Ltd and supermajor BP - has told the government that fuel retailing for the private sector in India has become unsustainable after market-controlling public sector firms frequently froze petrol and diesel prices at rates way below the cost, sources said. Despite a surge in oil prices, state-owned Indian Oil Corporation (IOC), Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum Corporation Ltd (BPCL) first froze petrol and diesel rates for a record 137 days beginning early November 2021 when five states including Uttar Pradesh went to the polls, and last month again went into a hiatus that is now 47 days old. "They (Reliance BP Mobility Ltd) has written to the petroleum ministry over the fuel pricing issue," a highly placed source in the government, who didn't want to be quoted, told reporters.
IOC, BPCL and HPCL on Thursday afternoon stopped ATF supplies to Air India at six airports - Kochi, Pune, Patna, Ranchi, Vizag and Mohali - over payment defaults. AI flights from these places were tanking up from other airports.
The fall in crude prices has added to the gains.
FinMin recently stated that subsidy on petroleum products would not exceed Rs 80,000 crore, when exchange rate was around Rs 54.
The price of the Indian basket of crude oil jumped as much as 78 per cent to cross $50 a barrel last week, from a multi-year low of $28 in January.
After being left unchanged for more than 10 months, diesel prices may see an increase of around Rs 2 per litre next month, providing marginal relief to the oil marketing companies (OMCs) that incur a loss of Rs 16.10 on selling every litre.
The bail pleas of mining baron and former Karnataka minister Gali Janardhana Reddy and his brother-in-law B V Srinivas Reddy were on Thursday rejected by a local court; the third time since their arrest in the alleged illegal mining case, involving the Obulapuram Mining Company (OMC).
The Central Bureau of Investigation on Friday started questioning YSR Congress president Jagan Mohan Reddy at his Koti office in Hyderabad on Friday. The CBI is planning to ask the Jagan over a 1,000 questions about the alleged link between his front companies and the Obulapuram Mining Company.
In a meeting with stakeholders last week, the authority mooted setting up a Special Purpose Vehicle along with airlines and state-owned oil marketing companies to develop common infrastructure to import ATF, among others, at Chennai and Kolkata airports. While AAI and OMCs will hold 76 per cent in the proposed SPV, the airlines will participate in the remaining 24 per cent equity.
Foreign institutional investors (FIIs) have raised their stakes in public sector oil marketing companies (OMCs) in the three months ended September 30 - the first quarter after the government decontrolled petrol prices and announced plans to decontrol diesel rates as well.
With the government putting off an increase in diesel prices, Petroleum Minister Murli Deora sought an increase in government subsidy to bail out the three oil marketing companies (OMCs). Deora met finance minister Pranab Mukherjee in Mumbai to seek an immediate release of `10,000 crore as interim subsidy to Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation.
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RBI's forex swap window for oil marketing companies addresses an urgent issue but what happens when the dollars have to be returned?
Amid a spate of government proposals at its door, the Election Commission has asked all Union government departments to route their proposals through the Cabinet Secretariat.
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