New Delhi: India will pay Rs 30,000 crore to state-owned fuel retailers forced to sell at cheaper government-set rates in the first half of the year, said three sources who saw the finance ministry's confirmation letter. The government fixes retail prices of liquefied petroleum gas, kerosene and diesel to protect the poor, leading to revenue losses at state-run Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp.
The payout by the finance ministry, nearly 46 per cent less than the Rs 55,400 crore the oil ministry had been seeking, will be released after parliamentary approval is granted, the sources said. The finance ministry pays cash subsidies to state oil retailers while state-run upstream companies - Oil and Natural Gas Corp, Oil India Ltd and GAIL (India) - sell crude oil and associated products at a discount.
India raised the price of diesel in mid-September, after a gap of more than a year, and capped annual sales of subsidised cooking gas cylinders to six per household. The three fuel retailers received the letter from the finance ministry on Thursday morning, the sources said. IOC, the largest fuel retailer, will receive a government subsidy of about 161 billion rupees, while HPCL and BPCL's share will be about 66.7 billion rupees and 72 billion rupees respectively, they said.
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08:50 AM, Nov 09, 2012
New Delhi: The steepest ever Rs 5.63 a litre hike in price not withstanding, diesel in India is still cheaper than its neighbours Pakistan and Bangladesh as also the US and the European countries. Diesel prices were on September 14 raised by Rs 5.63 per litre to Rs 46.95 a litre in Delhi. Even so, diesel in India costs less than Bangladesh where a litre costs Rs 49.08, and in...
02:14 PM, Sep 16, 2012
Mumbai: The eastern belt of Mumbai is one of India's most sensitive zones. Adjacent to the Bhabha Atomic Research Centre are the HPCL and BPCL oil refineries - one of India's most important fuel supply hub. While BARC is now on a high alert after an inter-state terror module was busted, its now the storage depots of these refineries which face a specific terror threat. The number of terrorists plotting...
07:59 PM, Sep 06, 2012
Mumbai: Mumbai's oil refineries have been put on a high alert after an intelligence warning of a possible terror attack. The security at the oil refineries has been stepped up. This comes after an intelligence alert about a plot to target HPCL and BPCL oil depots. The alert specifies the number of terrorists, their method and the target spot. It even states the name of the area they hail from....
01:31 PM, Sep 06, 2012
New Delhi: After oil and gas field contracts, the Comptroller and Auditor General (CAG) wants to audit huge under-recoveries or revenue losses reported by state-run oil retailers on sale of diesel and cooking fuels. Indian Oil Corp (IOC), Hindustan Petroleum (HPCL) and Bharat Petroleum (BPCL) sell diesel, domestic cooking gas (LPG) and PDS kerosene at government controlled rates that are way below market price. The difference between the retail sale...
11:17 AM, Sep 02, 2012
Mumbai: State-run oil companies rallied after the government allowed them to raise the prices of petrol, though the action was more mixed for auto stocks. BPCL gained 3 per cent, HPCL added 2.3 per cent, while IOC advanced 2.7 per cent. The impact on auto stocks was more mixed given the proportion of petrol and diesel vehicle sales are different per company. Maruti Suzuki shares fell 2.6 per cent, while...
12:44 PM, May 24, 2012
New Delhi: State-owned oil firms are pushing for at least Rs 3 per litre hike in petrol price from April 1 to cover part of the spike in cost of raw material. "We are losing Rs 6.43 per litre on petrol and after adding 20 per cent sales tax, the desired increase in rates in Delhi is Rs 7.72 per litre," a senior oil company official said. "We understand that...
10:09 PM, Mar 30, 2012
New Delhi: Cash strapped Kingfisher Airlines is in trouble. Top sources say the airline may have to shut down if they don't secure working capital loans soon. The airlines grounded one third of its 66 aircraft fleet cancelling over 80 flights over the last two days. The Director General of Civil (DGCA) could take the airline to task. Kingfisher Airlines chief Vijay Mallya on Thursday said, "Decision to reschedule and...
09:42 AM, Nov 11, 2011
New Delhi: Kingfisher Airlines is going through troubled times as over 100 pilots have quit after they were not paid their salaries even as the company cancelled over 80 flights in the last two days. The cancellation of 80 flights in the past couple of days left thousands of passengers in the lurch prompting the Directorate General of Civil Aviation to demand an explanation from Kingfisher. Kingfisher Airlines chief Vijay...
05:35 PM, Nov 10, 2011
b>New Delhi: Over 100 Kingfisher pilots have submitted their resignations, sources said on Thursday. It is reported that the reason behind the mass resignation is because employees are yet to get their salary for the month of October. The cash-strapped airline cancelled almost 80 flights saying it had to drop flights as the company were trying to reconfigure its aircraft. Chaos followed after passengers complained that they were not intimated...
02:53 PM, Nov 10, 2011
Mumbai: India's No 2 carrier Kingfisher Airlines, controlled by liquor baron Vijay Mallya, plans to cancel 31 flights daily till November 19, including four international flights to Bangkok. The cash-strapped carrier, which has not reported a profit ever since it got listed and has undergone debt restructuring Once, has decided to cancel 27 domestic flights, the paper said, without specifying a reason. The cancellations include Delhi, Mumbai, Bangalore, Chennai, Kolkata...
11:36 AM, Nov 08, 2011
New Delhi: As the UPA allies pressurise the Centre to roll back the petrol price hike, oil companies fear that they may have to bear the brunt of coalition politics. HPCL Chairman S Roy Choudhury said, "We are not facing any pressure from the government for prices. We haven't got any instructions for any rollback of price. We still have 0.2 paise under recovery, so we cannot be reducing prices."...
08:13 AM, Nov 08, 2011
New Delhi: Oil Minister S Jaipal Reddy on Wednesday called for a meeting of the Empowered Group of Ministers (EGoM) to decide on revising the prices of diesel and LPG. "I have asked for a meeting of the Empowered Group of Ministers (EGoM)," Reddy told reporters after a meeting with Finance Minister Pranab Mukherjee, who heads the EGoM. State-owned oil firms are currently losing Rs 9.27 per litre of diesel,...
02:31 PM, Nov 02, 2011
New Delhi: New Delhi: Less than two months after raising fuel prices by a whopping Rs 5 per litre, the State-owned oil companies are pressing for a Rs 1.82 per litre increase in petrol prices. Oil company officials say this is because of rupee depreciation and hardening of crude oil prices. They also say that the hike may happen as early as this fortnight itself. Public sector oil firms had...
02:29 PM, Nov 01, 2011
New Delhi: State-owned oil marketer Hindustan Petroleum Corporation Ltd (HPCL) has resumed fuel supplies to Vijay Mallya-promoted Kingfisher Airlines. Sources say Kingfisher owes HPCL approximately Rs 100-130 crore and a non-payment of due had resulted in the fuel stoppage. Nearly six Kingfisher flights (KFA) out of Delhi airport were delayed on the supply interruption. The airline had also stopped check-ins for the time being. Sources say KFA and HPCL are...
07:46 AM, Oct 14, 2011
New Delhi: The state-owned Hindustan Petroleum Corporation Ltd (HPCL) on Thursday cut off Aviation Turbine Fuel (ATF) supply to Kinfisher Airlines leading to cancellation of Kinfisher flights flying out of Delhi. Kingisher has stopped check-ins at the T-3 of Indira Gandhi International (IGI) Airport after six flights were delayed due to fuel shortage. Vijay Mallya-owned Kingfisher Airlines owes HPCL roughly Rs 100 to Rs 130 crore against the ATF supplied...
08:45 PM, Oct 13, 2011
A sudden wave of volatility in the Indian rupee has increased the degree of risk for companies and the financial system as a whole. Over the past three months, the rupee has fallen 12 per cent against the dollar and could even slip to the 52 mark if European debt worries persist. Though many analysts foresee the currency clawing back to around 46, they believe that will take a while....
11:00 AM, Oct 11, 2011
Mumbai: Shares of oil marketing companies Indian Oil, HPCL and BPCL recorded smart gains in early morning trade on Friday, despite an overall downward move on the bourses. Analysts said that the stocks have added value amid reports that the government was moving in direction of de-control of diesel prices. The gains in these stocks were in sharp contrast to huge losses suffered by the overall market in early morning...
09:46 AM, Aug 05, 2011
Tehran: The Iran's Foreign Minister will visit India in the coming weeks, news agency ISNA quoted an official on Saturday as saying, as the two countries seek a way of ending a standoff over unmet payments for oil exports. Ali Akbar Salehi will hold talks with his Indian counterpart on bilateral and international issues, Mehdi Nabizadeh, Iran's ambassador to India, told ISNA. "(Salehi) will travel to India within the next...
12:44 PM, Jul 24, 2011
Ahmedabad: Around one lakh litres of diesel spilled off Mundra coast in Kutch district of Gujarat from the oil jetty of a private port on Tuesday, when a consignment of Hindustan Petroleum Corporation Limited (HPCL) was being off-loaded from a ship. "The incident took place when a diesel consignment of HPCL was being transferred from the ship to tanks. The valve of one of the tanks was tightened so much...
05:15 PM, Jun 21, 2011
