Fuel retailers sell diesel, domestic LPG and kerosene at government controlled rates which are below market price. The loss they thus incur is made good through cash subsidy from the government and dole from upstream firms like Oil and Natural Gas Corporation.
Embarking on a major promotional drive to popularise value-added products of coconut, the Coconut Development Board has tied up with BPCL to put up kiosks in petrol stations throughout the country.
If the reforms are implemented, multi-brand retail majors such as Future Group and Reliance Retail might enter the fuel retail space.
Analysts are enthused by BPCL's upstream foray and have re-rated the stock in the past couple of years.
In 16 days, petrol price has been hiked by Rs 8.3 per litre and diesel by Rs 9.46 - a record increase in rates of the fuel in any fortnight since pricing was deregulated in April 2002.
IOC has been forced to shut down its Digboi refinery in Assam and is operating Guwahati unit at minimal throughput, while OIL has been forced to shut LPG production and its crude oil production has dropped by 15-20%. Sources said the agitation has blocked the movement of tankers and trucks, which are mostly used to supply petrol, diesel and LPG from the refineries to different parts of the North East.
In the year to date, 61 PSUs have lost an average of 22 per cent, with five companies losing more than half their share value. The BSE PSU index is down 10.6 per cent.
Shankar Sharma of First Global says that earnings for HPCL, BPCL can quadruple, factoring in oil bonds.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
bp had last year bought 49 per cent stake in the 1,400-odd petrol pumps and 31 aviation turbine fuel stations owned by RIL for $1 billion.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
State-owned oil companies IOC, BPCL and HPCL are likely to post net losses in the first quarter of the current fiscal as a result of selling fuel below cost price.
This is the second hike in diesel price this month.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
Prime Minister Manmohan Singh on Monday pushed for phased rationalisation of energy prices to bring them in line with international prices to meet the targeted rapid inclusive and sustainable growth.
Oil firms' borrowings could fall by up to Rs 15,000 cr, govt's subsidy bill by 12% .
At a poll rally on Monday, Prime Minister Modi said the protests against the new citizenship law in Shaheen Bagh and other areas in New Delhi are not a coincidence but an 'experiment' ('sanyog nahi prayog') and a political conspiracy to destroy the country's harmony. Taking on the PM, Priyanka Gandhi said a report recently said 3.5 crore jobs have been lost in the last five years in seven important sectors.
India's fuel consumption slumped by over 66 per cent in the first week of April as a nationwide lockdown halted economic activity and travel, which eviscerated demand. Petrol and diesel demand is down 66 per cent in April, while aviation turbine fuel (ATF) consumption has collapsed by 90 per cent as most airlines have stopped flying, industry officials said.
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Investment can only be by prospective dealers.
Top losers in the Sensex pack included M&M, SBI, Yes Bank, Asian Paints, HDFC, Tata Steel and L&T, shedding up to 2.55 per cent. The broader NSE Nifty settled 79.80 points, or 0.72 per cent, down at 10,996.10.
Jet fuel (ATF) price was on Monday hiked by a steep 56.5 per cent and that of non-subsidised cooking gas LPG by Rs 11.5 per cylinder on the back of firming up of international oil rates, but petrol and diesel prices continued to remain on freeze for a record 78th day. Aviation turbine fuel (ATF) price was hiked by Rs 12,126.75 per kilolitre (kl), or 56.5 per cent, to Rs 33,575.37 per kl in the national capital, according to a price notification by State-owned oil marketing companies.
To help them make up for the revenue lost on selling auto and cooking fuel below cost.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
Abhijeet Gupta's silver medal ended a long drought for Indians in the Open section of the Chess Olympiad. After a gap of 22 years -- the last one being Dibyendu Barua's gold medal on board two in Novisad 1990 -- an Indian won a medal for individual performance.
Among top losers that dragged down key indices were Infosys, TCS, Reliance, SBI, Tata Steel and ITC, falling up to 2.15 per cent.
Richest Indian Mukesh Ambani-led RIL was the top private sector company from the country as it jumped from 203rd rank last year to 148th.
IndianOil Corp Ltd, for instance, saw a growth of around 22 per cent in volumes and nearly two per cent in its market share. It traded nearly 10,517 million tonnes (mt) of auto gas in December against 8,593 mt of auto gas in September.
Walmart CEO Douglas McMillon came first in the CEOWORLD magazine's global ranking of the best chief executives across all industries for 2019.
The government on Thursday sanctioned Rs 17,772 crore (Rs 177.72 billion) cash subsidy to fuel retailers like IOC to cover for half of the revenues they lost on selling diesel and cooking fuels below cost in the September quarter.
According to data compiled by BS Research Bureau for BSE 100 companies, seven public sector companies -- Indian Oil Corporation (IOCL), Bank of India, Union Bank, Bharat Petroleum (BPCL), Oil and Natural Gas Corporation (ONGC), Hindustan Petroleum (HPCL) and GAIL -- have reduced their employee costs ranging from one per cent to 21 per cent.
The broader NSE Nifty too fell below the 10,100 level by dropping 100.10 points to end at 10,094.25
Losses on sale of diesel at government-controlled rates have hit a record Rs 19.26 a litre, sending state-owned oil companies scrambling for ways to cover the mounting losses.
BPCL plans to save Rs 500-800 cr, while HPCL eyes 10% reduction in total costs.
"Air India is unable to pay even after a 90-day credit period. They owe us about Rs 300 crore without interest. There is also no bank guarantee from Air India to any of the oil marketing companies. We do not know when will the company honour its dues," said a BPCL official on condition of anonymity.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
'By holding forth on Swadeshi economics, Bhagwat is showing his intent to fight back,' says Shekhar Gupta.
Viswanthan Anand got back into the reckoning by defeating compatriot M Shyam Sundar in a one-sided affair in the Isle of Man International chess tournament on Wednesday. On a good day for Indians, former World junior champion Abhijeet Gupta tamed the highly-regarded Liem Le Quang of Vietnam.
Attractive pricing coupled with improving prospects make the offer lucrative
Sitharaman raised excise duty and road and infrastructure cess on the auto fuels by Rs 2 per litre each to raise over Rs 28,000 crore.
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