Under Recoveries

Kerosene price hike will lead to rerating of ONGC, OIL: IDBI Cap

Sudeep Anand, IDBI Capital Markets Services believe with reduction in under recoveries rerating of upstream companies is on the cards.

Ad-hoc subsidy mechanism needs to be resolved: RS Sharma

RS Sharma Former Chairman, ONGC, says the news is very positive for upstream companies. However, he adds that the ad-hoc subsidy mechanism needs to be resolved.

Bullish oil marketing cos on subsidy share clarity: Goldman

Goldman Sachs expects another Rs 2,700 crore to come from the government towards direct transfer of LPG subsidy, taking the OMCs' total receipts to Rs 8,000 crore.

OMCs to see inventory gains; GAIL derating likely: Antique

Amit Rustagi of Antique Stock Broking says there is no clarity on whether in FY16, the same ad-hoc mechanism will continue or whether the government will provide subsidy sharing clarity.

Oil price slump to help cut rev loss on fuel sales: Govt

The under recoveries of the downstream oil companies for the financial year 2013-14 were Rs 1,40,000 crore which came down to Rs 86,000 crore around July, when Finance Minister Arun Jaitley presented the NDA government's maiden budget.

ONGC stake sale after new subsidy sharing formula: Pradhan

The Department of Disinvestment will take a call on time of divestment of ONGC, he told reporters after meeting with Finance Minister Arun Jaitley.

Oil cos, govt may split LPG subsidy sharing 50:50

Sources say the PMO has already agreed to share the subsidy burden 50:50 and taking this forward, the oil ministry is now arguing that the same rationale should be applied for diesel and kerosene.

Gas price to be next big trigger for sector: Moody's

Credit rating agency Moody's in a recent note has said that it expects credit profile of OMCs to improve over the next 12 months on the back of falling crude prices and subsidy burden.

Subsidy burden in FY14 will not be worse than FY13: ONGC

If the rupee trades at around 62/USD and the oil price is about USD 110/barrel then the subsidy burden would be something like Rs 159,000 crore, which is just about the same as last year which was Rs 1,61,029 crore.

Seek one-time hike in diesel price: IOC

Rupee has depreciated roughly 12 percent during the current year. On every rupee depreciation, under-recoveries for the sector jumps by roughly Rs 8,000 crore

Lower net realisation at $42/bbl has disappointed: ONGC

Lower realisations remains a concern for ONGC which saw it come down to USD 42/bbl from USD 48/bbl year-on-year

We are still losing Rs 3-4/ltr on diesel sale: BPCL's CMD

After the government allowed fuel retailers to hike diesel price at regular intervals, companies have witnessed a significant cut in under-recoveries.

Fuel price hike: How much will HPCL, BPCL, IOC gain

Oil companies may cut losses by around Rs 10,000 crore by year-end on regular diesel price hikes, say analysts. Bharat Petroleum, Hindustan Petroleum and Indian Oil Corp are still losing around Rs 9.50/litre on diesel sale, despite raising price for the second time in a month, after the government allowed them to do so.

45 paise/L diesel hike to cut BPCL, ONGC losses

The government had said last month it would allow fuel retailers to raise the price of subsidised diesel by 0.40 rupees-0.50 rupees a litre every month and asked bulk buyers to pay market rates. Major oil marketing companies have taken the decision to hike fuel prices, which should be encouraging for the market.

FinMin for export parity pricing of diesel

In a move that will hit oil PSUs hard, the Finance Ministry wants changes in the way petrol and diesel are priced by suggesting excluding the element of import duties to save about Rs 18,000 crore in subsidy bills.

Reliance subdued on Q3 eve, HPCL, BPCL, IOC close 5-10% up

Ahead of its December quarter earnings announcement, Reliance Industries closed the day at Rs 897.20, up 0.85%. On the other hand,Indian Oil Corp, Bharat Petroleum and Hindustan Petroleum rose between 5-10% after the government allowed them to raise diesel price in small quantum and in phases till the time they make up losses their losses.

Government recalculates OMCs under recoveries

The oil marketing companies (OMCs) have projected under-recoveries at Rs 1.6 lakh crore. Currently, government‘s total subsidy burden stands at Rs 2.06 lakh crore and the government is trying to meet a fiscal deficit target of 5.3 percent, reports Akansha Sethi of CNBC-TV18.