"It will help the PSU OMCs to continue their commitment to the Atmanirbhar Bharat Abhiyaan, ensuring unhindered domestic LPG supplies," the Centre said.
"BPCL is doing well now, divestment is not on the table right now," the minister said.
Most airlines in India are in talks with oil marketing companies including Bharat Petroleum Corporation, Hindustan Petroleum Corporation, and Indian Oil Corporation and will sign supply agreements with OMCs by October.
The government has raised the windfall profit tax on the export of diesel to Rs 13.5 a litre and the levy on ATF has been increased to Rs 9 a litre
This additional demand for ATF at a time when they are selling at record high prices will boost revenue of the OMCs at a time when they are booking losses on the retail sale of fuel.
The Universal Service Obligation will make it obligatory for OMCs to provide supply to retail pumps across the country for the benefit of the end-customers.
There is no change in the basic price of ethanol from the different feedstock and the vendors have to maintain the prevailing rates in the invoices.
AIPDA, which represents 22 state fuel dealers associations in India, met petroleum ministry officials, who assured them that their demand will be fast-tracked and that the centre will set up a meeting between fuel dealers and oil marketing companies.
With the excise duty cut alone, the effective retail price of petrol will be reduced by around Rs 9.5 per litre and of diesel by Rs 7 per litre.
Dealers said they have been asked to restrain sale to new customers as oil marketing companies are losing Rs 28 per litre on diesel and Rs 8 per litre on petrol.
The company’s downstream petroleum business reported revenue of Rs 105,236 crore in Q4FY22, up almost 24% on year. But the business saw its earnings before tax, interest income, interest expenditure, and dividend falling almost 44% year-on-year to Rs 2,261.67 crore.
IOC’s pre-tax earnings from the sale of petroleum products declined by 8 percent to Rs 8,251.29 crore in the March quarter, while that for its petrochemicals business fell 72 percent to Rs 570.18 crore.
New Delhi is considering inviting bids for a 20%-25% stake in BPCL, instead of an outright sale of its entire 52.98% holding, the two government officials, who declined to be named, told Reuters.
The Singapore gross refining margin has touched the $20 per barrel mark, a level last seen in 2012
Beginning March 22, oil marketing companies have increased the prices on 13 of the last 15 days, almost every time by 80 paise. With the 80-paise increase on April 5, the total increase stands at Rs 9.20 per litre.
With this, the retail prices of petrol and diesel have been increased for the third time this week after a 137-day freeze.
While industry expects while the OMCs will further hike the retail prices, the government will again step in with a tax cut
Given that crude oil prices have gone up by about $38 a barrel since November, retail fuel prices are bound to rise, although the increases may be gradual and the entire burden may not be passed on to consumers.
Petrol pump dealers believe that a tax cut by Centre and states may be the only way to offer some relief to consumers
Oil marketing companies have left price of petrol and diesel unchanged for the 89th day on February 2, despite rise in crude oil prices.
Current prices of petrol and diesel in the international market are higher by around $4-6 per barrel as compared to average prices during August.
Sitharaman said that as of 31 March, 2021, there were Rs 1.31 lakh crore in outstanding principles and Rs 37,340 crore in interest yet to be repaid on the oil bonds dating back to the UPA-era.
On Sunday, petrol price in the national capital continued to be sold for Rs 101.84 per litre, while diesel is also being sold at the unchanged price of Rs 89.87 a litre.
Blending petrol with more of home-grown ethanol can reduce India’s oil import bill by $4 billion a year, and is great news for sugar mills as it is produced from a byproduct. It also helps farmers.
Delivery boys visit 65-75 lakh houses, accessing more than three crore people daily, which makes them vulnerable to infection; Federation asks for immediate vaccination