Press Release on MS Price Revision

The Motor Spirit (MS) charges were de-regulated by Government of India w.e.f. 25.06.2010. Since then, OMCs encompassing IndianOil have the flexibility to rectify the MS prices. In the present year (2011-12), as a outcome of increasing worldwide MS charges, IndianOil has modified MS charges up by Rs.4.17 per litre on 15th May’11; Rs.2.62 per litre on 16th Sept’11 and Rs.1.50 per litre on 4th Nov’11.

IndianOil reconsiders the MS charges on fortnightly cornerstone and founded on the reconsider, repairs the MS charges for the next fortnight. In holding with this perform, IndianOil has reconsidered the charge cycle as common in the last fortnight. The reconsider discloses that at the present charges, there will be an over-recovery of Rs.1.85 per litre. It has, thus, been determined to modify the MS charges down high ground by Rs.1.85 (excluding State levies and levies) w.e.f. 16th Nov.’11.

The decrease has been likely as a outcome of favourable influence of skid down both in the worldwide charges of MS and in the Rupee / Dollar parity. The Rupee / Dollar exchange rate which had shifted high in the second fortnight of Oct’11, came down marginally and stayed more or less steady in the locality of Rs.49.30 per USD in the applicable first fortnight of Nov’11. It may be documented that the rupee has endured important depreciation yesterday and today. If the Rupee / Dollar parity continues at this grade or proceeds farther away, its influence would get echoed in the next charge cycle. The applicable charge cycle applicable for the fortnight starting 16th Nov’11 has thus stayed free from any foremost disturbance in the Rupee / Dollar parity.

With the overhead modification, there will be no under / over recovery on MS charges throughout the fortnight starting 16th Nov’11. Although, the charge conclusion in esteem of three perceptive goods namely HSD, SKO (PDS) and LPG (Dom) is taken by the Government, IndianOil has been distributing the influence of under-recoveries on them. In case of High Speed Diesel (HSD), the worldwide charges have made solid up (a tendency precisely converse to MS) throughout the fortnight and as a outcome, the under-recovery of the Company on HSD has expanded from Rs.8.58 to Rs.10.17 per litre. The charge in esteem of SKO (PDS) and LPG (Dom) pursues a monthly cycle and thus in esteem of these two perceptive goods, the under recovery continues at Rs.25.66 per litre on SKO and Rs.260.50 per LPG cylinder as was the case in the preceding fortnight.

IndianOil’s Gross Turnover up by 25.5% to Rs. 93,868 crore Still Posts Rs. 7486 crore decrease for Q2

Indian Oil Corporation Ltd. (IndianOil)’s Gross Turnover for the second quarter of the present economic year completed September 2011 increased by 25.5% to Rs. 93,868 crore from Rs. 74,766 crore throughout the identical time span last year. The Corporation has dispatched a decrease of Rs. 7486 crore for the second quarter of 2011-12 as in evaluation to a earnings of Rs. 5294 crore for the identical quarter of the preceding year. The decrease is mostly on account of boost in unmet under-recoveries and boost in concern expenditure.

For the six month time span of April-September 2011, the Gross Turnover increased by 26.8% to Rs. 1,93,625 crore from Rs. 1,52,738 crore throughout the identical time span last year. The Corporation has dispatched a decrease of Rs. 11,204 crore for the first half of 2011-12 as in evaluation to a earnings of Rs. 1906 crore for the identical time span of the preceding year.

The unaudited economic outcomes of the Corporation were taken on record at the gathering of the Board of Directors here today. The unmet under-recovery on account of non-realisation of market-related charges for Diesel, PDS Kerosene and LPG (Domestic) for the quarter was Rs. 7837 crore and Rs. 15,509 for the six-month time span of April-September 2011.

Mr. RS Butola, Chairman, IndianOil, said, “IndianOil’s merchandise sales volumes, encompassing trade items, increased by 4.6% to 17.693 million tonnes throughout the second quarter of 2011-12. Our quarterly perfecting throughput went up by 7.5% to 13.046 million tonnes as in evaluation to the corresponding quarter of the preceding year. The throughput of the Corporation’s countrywide pipelines mesh went up by 2.211 million tonnes to 17.755 million tonnes as in evaluation to the corresponding quarter of the preceding year.”

Press Release on Hike in Petrol Prices

During present fiscal year, so far, MS household trading charges have been modified thrice encompassing the modification w.e.f today i.e. 04.11.11, other two modifications occurred w.e.f 15.05.11 & 16.09.11.

The last cost change on 16.09.11 was for an allowance of Rs 3.14/litre (at Delhi) which eradicated the then current decrease of Rs 2.62/litre. However, by this time Indian Oil Corporation had currently built up a decrease of Rs 1134 Crore on sale of MS in household market. During Oct’11, there was no cost change and the Corporation built up another Rs 21 Crore decrease on MS sales. Thus, the Corporation has built up a decrease of Rs 1155 Crore on MS Sales throughout Apr-Oct11.

Since the last cost change wef 16.09.11, worldwide oil charges have softened marginally. While Indian basket of crude has turned down from &110.86/bbl to $108.60/bbl, MS FOB Singapore cost has gone down from $125.18/bbl to $121.67/bbl. However, the boost in USD-INR exchange rate has been so vertical (from 46.29 on 16.09.11 to 49.40 on 01.11.11) that it has more than swabbed out the influence of decreased worldwide oil prices.

Based on the tendency of crude oil, worldwide MS charges, exchange rate, household trading charges & influence of these diverse components on decrease per unit on household sale of MS since the last cost change wef 16.09.11 to present time span, MS worldwide cost (FOB Singapore) has gone down by $3.51/bbl producing in decrease of Rs 0.97/litre. However, throughout the said time span, the USD-INR exchange rate has shown a important uptrend of Rs 3.11/USD which had a contrarian contradictory influence of Rs 2.49/litre on MS charges, producing in a snare contradictory margin of Rs 1.52/litre on household sales of MS. At this rate, OMCs would have endured added decrease of Rs 130 Crore throughout 1st Fortnight of Nov’11 had the cost boost of Rs 1.80/litre not been effected.