News Release Details
Package for oil refiners this week
Mumbai 09-Oct-2007
The UPA government is likely to announce a package for oil marketing companies later this week. A final call seems to have been taken at the meeting of Prime Minister Manmohan Singh, finance minister P Chidambaram and petroleum minister Murli Deora where various options of facing the spike in international prices were discussed. Speaking to reporters, Deora did not divulge details of the meeting. He did not comment on a specific query on whether a decision on oil bonds is likely to be taken this week. Senior officials maintained that a "price hike was not likely". Oil bonds are used to compensate oil-marketing companies, for losses incurred by selling auto and cooking fuels below trade parity prices. While the writing on the wall is still not clear with regard to oil bonds, sources say a fiscal resign may also accompany the bonds this time. An excise duty cut, without any change in prices at the consumer end, could benefit oil marketing companies and give the government a point to score it can claim to have borne the burden of the international price rise directly. At present, petrol attracts 8.16% plus Rs 13.26 a litre excise duty, while diesel 8.16% plus Rs 3.32 a litre.
Mumbai 09-Oct-2007
The UPA government is likely to announce a package for oil marketing companies later this week. A final call seems to have been taken at the meeting of Prime Minister Manmohan Singh, finance minister P Chidambaram and petroleum minister Murli Deora where various options of facing the spike in international prices were discussed. Speaking to reporters, Deora did not divulge details of the meeting. He did not comment on a specific query on whether a decision on oil bonds is likely to be taken this week. Senior officials maintained that a "price hike was not likely". Oil bonds are used to compensate oil-marketing companies, for losses incurred by selling auto and cooking fuels below trade parity prices. While the writing on the wall is still not clear with regard to oil bonds, sources say a fiscal resign may also accompany the bonds this time. An excise duty cut, without any change in prices at the consumer end, could benefit oil marketing companies and give the government a point to score it can claim to have borne the burden of the international price rise directly. At present, petrol attracts 8.16% plus Rs 13.26 a litre excise duty, while diesel 8.16% plus Rs 3.32 a litre.