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.
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.
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.
All subsidies will be eliminated by March 2018
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.
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.
Despite raising petrol prices by around Rs 2.95 a litre - the second-biggest increase in this calendar year so far - public and private retailers are losing Rs 50 crore a day on selling the auto fuel.
The Supreme Court on Monday allowed Obulapuram Mining Company, belonging to the Reddy brothers, to resume mining in the undisputed region of the Bellary reserve forest in Karnataka.
The government-controlled oil marketing companies (OMCs) decided to review retail prices of petrol on a monthly basis. However, the date for the next price review and the mechanism to fix the price are yet to be finalised.
Prices of petrol were reduced 32 times and increased 21 times while diesel prices were slashed 19 times and raised 28 times since 2013.
Karnataka Lokayukta Police on Tuesday raided the premises of former minister and mining baron Janardhan Reddy in Bellary for alleged illegal mining and possession of disproportionate assets.
Rebuffing petroleum ministry, Siddaramaiah launches Pradhan Mantri Ujjwala Yojana-like scheme months before state polls
The country is facing no shortage of domestic cooking gas at the moment, Petroleum Minister Murli Deora told the Rajya Sabha on Tuesday. As on October 1, 2007, OMCs were serving 9.79 crore LPG customers through their 9,355 distributorships. OMCs have released 27.7 lakh new LPG domestic connections in the country during April-September.
Credit card payments to buy fuel at petrol pumps will from October 1 not get a 0.75 per cent discount that State-owned oil companies had introduced more than two-and-a-half years back to promote digital payments.
In early trade on Monday, the rupee fell to 63.33 to a dollar, its weakest since September 18.
Declining crude price translates into lower under-recoveries for OMCs
Govt looks to take cooking gas to tiger reserves, Naxal-hit areas
Given that the target was to reach 80.34 million families under PMUY - within three months starting April 1 - the government should have distributed at least 241.02 million cylinders by the end of June. It actually ended up distributing only 119.7 million cylinders.
The Union government will gain close to Rs 1.6 lakh crore in additional revenues this fiscal from a record hike in excise duty on petrol and diesel that has pushed the total incidence of taxation on auto fuels to 70 per cent of the price. Late on Tuesday evening, the government hiked excise duty on petrol by Rs 10 per litre and that on diesel by Rs 13 a litre to mop up gains arising from international oil prices falling to a two-decade low.
#GiveItUp but no matching LPG connections for BPL
Ministry may seek to retain control even after underrecovery becomes zero.
Move likely to be rolled back atleast for state transport undertakings
Prime minister's office wants OMCs to bear credit subsidy for remaining 8 subsidised units on reimbursement basis.
Plans to increase price progressively.
The private companies want a level playing field so that they can compete with the government companies in fuel retailing.
'I have no problems with the finance ministry or with state governments treating petrol pump prices as the last resort for meeting their ambitious spending targets with very limited revenue resources.' 'But let's do away with this smokescreen of free pricing of petrol and diesel and go back to administered pricing regime,' says Dr Sudhir Bisht.
Next phase of rise will unlikely be a combined exercise from the three oil marketing companies.
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