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India Oil & Gas
Gov’t to pay up to half of fuel subsidy — The gov’t will now cover up
to half of the losses of state-run OMCs from selling fuels at rates
that are below cost, as their losses mount with crude staying above
US$100/bbl. The under-recoveries, could reach as much as Rs1 trillion,
oil minister S. Jaipal Reddy said, higher than a Rs750bn estimate
earlier. “OMCs are facing increasing under recoveries," Jaipal Reddy
said. "Global crude oil prices have started to go up. At the moment,
we are not thinking of increasing fuel prices." With high inflation
and the gov’t embroiled in a slew of corruption cases ahead of key
state elections this year, raising diesel and other fuel prices
appears highly unlikely. One option that the gov’t may consider is to
slash duties on crude and refined products to ease the burden of OMCs
that are forced to sell diesel and cooking fuels at below market
rates. (Reuters, 15th Feb)
Gov’t not to hike diesel, LPG prices, says Reddy — The gov’t said it
would not increase the prices of petroleum products like diesel,
domestic cooking gas and kerosene despite skyrocketing global prices.
Oil minister S Jaipal Reddy said that the gov’t was not contemplating
any rise in the price of petroleum products. “Global prices have again
started showing upward trend. We have to get the empowered group of
ministers (EGoM) apprised of price changes. At present, nothing is
contemplated,” Reddy added. (Financial Chronicle, 15th Feb)
5% customs duty on LNG may go; to aid power, fertiliser units — The
gov’t is looking at scrapping 5% customs duty on LNG as it seeks to
help power and fertiliser producers that are facing reduced
availability of natural gas due to declining domestic gas production.
Removing the import duty on LNG would help in lowering the cost of
both CNG and PNG. Besides, when the gov’t eventually institutes the
gas pooling mechanism to make the fuel available to all fertilizer and
power producers at the same price, the removal of import duty on LNG
will help in lowering the price that individual pool customers will
have to pay. The gov’t is also considering the possibility of cutting
basic customs duty on petrol and diesel to 2.5% from 7.5% so that the
proposed removal of the 5% duty on crude oil sought by the oil
ministry becomes meaningful. (Financial Express, 15th Feb)
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
India Oil & Gas
Gov’t to pay up to half of fuel subsidy — The gov’t will now cover up
to half of the losses of state-run OMCs from selling fuels at rates
that are below cost, as their losses mount with crude staying above
US$100/bbl. The under-recoveries, could reach as much as Rs1 trillion,
oil minister S. Jaipal Reddy said, higher than a Rs750bn estimate
earlier. “OMCs are facing increasing under recoveries," Jaipal Reddy
said. "Global crude oil prices have started to go up. At the moment,
we are not thinking of increasing fuel prices." With high inflation
and the gov’t embroiled in a slew of corruption cases ahead of key
state elections this year, raising diesel and other fuel prices
appears highly unlikely. One option that the gov’t may consider is to
slash duties on crude and refined products to ease the burden of OMCs
that are forced to sell diesel and cooking fuels at below market
rates. (Reuters, 15th Feb)
Gov’t not to hike diesel, LPG prices, says Reddy — The gov’t said it
would not increase the prices of petroleum products like diesel,
domestic cooking gas and kerosene despite skyrocketing global prices.
Oil minister S Jaipal Reddy said that the gov’t was not contemplating
any rise in the price of petroleum products. “Global prices have again
started showing upward trend. We have to get the empowered group of
ministers (EGoM) apprised of price changes. At present, nothing is
contemplated,” Reddy added. (Financial Chronicle, 15th Feb)
5% customs duty on LNG may go; to aid power, fertiliser units — The
gov’t is looking at scrapping 5% customs duty on LNG as it seeks to
help power and fertiliser producers that are facing reduced
availability of natural gas due to declining domestic gas production.
Removing the import duty on LNG would help in lowering the cost of
both CNG and PNG. Besides, when the gov’t eventually institutes the
gas pooling mechanism to make the fuel available to all fertilizer and
power producers at the same price, the removal of import duty on LNG
will help in lowering the price that individual pool customers will
have to pay. The gov’t is also considering the possibility of cutting
basic customs duty on petrol and diesel to 2.5% from 7.5% so that the
proposed removal of the 5% duty on crude oil sought by the oil
ministry becomes meaningful. (Financial Express, 15th Feb)
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