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Currently, diesel is priced at trade parity, of which 80 percent is import price and 20 per cent export rate.
The current formula is ad hoc in nature and won't prevail for a long time. Currently, diesel is priced at trade parity of which 80 per cent is import price and 20 per cent export rate, says Kirit Parikh.
According to oil marketing companies (OMCs) switching to the EPP model will make them sick. They also fear that with this regime retaining foreign direct investment (FDI) would become difficult.
Red-flagging the Finance Ministry move to cut subsidises by changing fuel pricing norm, Oil Minister M Veerappa Moily today said not compensating oil PSUs for their losses will put question mark on their survival.
The Finance Ministry is mulling export parity pricing for petro products, reports CNBC-TV18‘s Aakanksha Sethi quoting sources.