The last price adjustment of Website Heart (MS) was affected by IndianOil on 1st Dec. 2011 when the Company reduced the price by Rs. 0.65 per liter on top of an formerly loss of Rs.1.85 per liter affected on 16th Nov. 2011. These two price reductions were affected due to relaxing down of the globally MS expenditures which decreased from USD 120.83 per gun gun barrel to USD 115.03 per gun gun barrel and further to USD 109.03 per gun gun barrel in the appropriate expenditures times.
The globally MS expenditures have since gone up progressively and take a place at USD 132.45 per gun gun barrel in the existing expenditures period. This is much higher than the purchasing value of USD 109.03 per gun gun barrel at which IndianOil and other OMCs are advertising MS (excluding Situation levies). The Company should have enhanced the MS price by Rs.1.89 on 01.01.12; Rs.4.08 on 16.01.12; Rs.3.13 on 01.02.12, Rs.3.47 on 16.02.12, Rs.5.09 on 01.03.12; Rs.6.43 on 16.03.12 and Rs.7.66 on 01.04.12. The increase now known as for is Rs.8.04 per liter (excluding Situation levies).
The Organization's deficit of ability to effect the price increases during the period 16th Dec. 2011 to 30 first Mar. 2012 has cause into finish under-recoveries of Rs.1036 crore (for all OMCs about Rs. 2287 crore). The under-recoveries knowledgeable by IndianOil during the period 2011-12 due to its deficit of ability to finish the increase to clients, has led to finish under-recoveries of Rs.2236 crore (Rs.4859 crore for all OMCs).
In the existing period beginning 1st Apr 2012 too, IndianOil has knowledgeable under-recoveries of Rs.331 crore (Rs.745 crore for all OMCs) in the first 15 times of Apr 2012. The Company, along with other Oil Marketing Companies has, therefore, predicted the Government to:-
1. Declare MS a handled product briefly and provide absolutely cash agreement to the OMCs, or
2. Reduce the Excise Execute on MS from Rs.14.78 per liter by an amount relative to the under-recoveries on MS and as well suggest the States to reduce costs of Income Tax, which change from 15% to 33% (that functions out and varies from Rs.10.30 per liter to Rs.18.74 per litre).
In the formerly times also, IndianOil, along with other OMCs, has approached the Government several times on the issue of MS expenditures with the suggestions that MS may be presented under the ambit of ‘controlled products’ briefly or government costs on MS may be reduced to the stage of decrease being knowledgeable by OMCs due to their deficit of ability to finish the increase in MS expenditures to clients for various aspects.
The exclusive conditions where OMCs have to exchange raw oil at a price of USD 121.29 per gun gun barrel (relevant for the second weeks duration of Apr 2012) and provide at USD 109.03 per gun gun barrel is not maintainable and therefore cannot continue. Expansion of such expenditures will only avoid the ability of the Company to exchange raw oil and may effect product supply-demand balance; or else the Company increase the purchasing value of petrol by Rs.8.04 per liter (excluding Situation levies) with immediate effect. The Company is looking forward to for Government’s respond to its needs and should no relaxation come forward, it will have no option but to effect the aforesaid increase in MS expenditures.
It may also be provided that the finish under-recoveries knowledgeable by IndianOil during the period 2011-12 on the three sensitive and handled products, viz. Diesel fuel petrol, LPG and SKO against which Government has to provide absolutely cash agreement, are Rs.75,620 crore (all OMCs about Rs.1,38,800 crore). The expenditures of sensitive products were enhanced only once during the period, i.e. on 25.06.2011. Since the last adjustment, the globally expenditures of these products have confirmed a exclusive increase. The under-recovery on HSD has gone up from Rs.6.13/litre to Rs.14.29/litre, for SKO (PDS) from Rs.24.16/litre to Rs.31.03/litre and for LPG (Domestic) from Rs.331.13/cylinder to Rs.570.50/cylinder as on 16th Apr 2012. This work out to an under-recovery of Rs.305 crore per day for IndianOil (for all OMCs Rs. 573 crore per day). At the existing costs, the under-recoveries of the Company during the period 2012-13 is calculated to be over Rs.1,08,000 crore (for all OMCs over Rs.2,04,000 crore).
The globally MS expenditures have since gone up progressively and take a place at USD 132.45 per gun gun barrel in the existing expenditures period. This is much higher than the purchasing value of USD 109.03 per gun gun barrel at which IndianOil and other OMCs are advertising MS (excluding Situation levies). The Company should have enhanced the MS price by Rs.1.89 on 01.01.12; Rs.4.08 on 16.01.12; Rs.3.13 on 01.02.12, Rs.3.47 on 16.02.12, Rs.5.09 on 01.03.12; Rs.6.43 on 16.03.12 and Rs.7.66 on 01.04.12. The increase now known as for is Rs.8.04 per liter (excluding Situation levies).
The Organization's deficit of ability to effect the price increases during the period 16th Dec. 2011 to 30 first Mar. 2012 has cause into finish under-recoveries of Rs.1036 crore (for all OMCs about Rs. 2287 crore). The under-recoveries knowledgeable by IndianOil during the period 2011-12 due to its deficit of ability to finish the increase to clients, has led to finish under-recoveries of Rs.2236 crore (Rs.4859 crore for all OMCs).
In the existing period beginning 1st Apr 2012 too, IndianOil has knowledgeable under-recoveries of Rs.331 crore (Rs.745 crore for all OMCs) in the first 15 times of Apr 2012. The Company, along with other Oil Marketing Companies has, therefore, predicted the Government to:-
1. Declare MS a handled product briefly and provide absolutely cash agreement to the OMCs, or
2. Reduce the Excise Execute on MS from Rs.14.78 per liter by an amount relative to the under-recoveries on MS and as well suggest the States to reduce costs of Income Tax, which change from 15% to 33% (that functions out and varies from Rs.10.30 per liter to Rs.18.74 per litre).
In the formerly times also, IndianOil, along with other OMCs, has approached the Government several times on the issue of MS expenditures with the suggestions that MS may be presented under the ambit of ‘controlled products’ briefly or government costs on MS may be reduced to the stage of decrease being knowledgeable by OMCs due to their deficit of ability to finish the increase in MS expenditures to clients for various aspects.
The exclusive conditions where OMCs have to exchange raw oil at a price of USD 121.29 per gun gun barrel (relevant for the second weeks duration of Apr 2012) and provide at USD 109.03 per gun gun barrel is not maintainable and therefore cannot continue. Expansion of such expenditures will only avoid the ability of the Company to exchange raw oil and may effect product supply-demand balance; or else the Company increase the purchasing value of petrol by Rs.8.04 per liter (excluding Situation levies) with immediate effect. The Company is looking forward to for Government’s respond to its needs and should no relaxation come forward, it will have no option but to effect the aforesaid increase in MS expenditures.
It may also be provided that the finish under-recoveries knowledgeable by IndianOil during the period 2011-12 on the three sensitive and handled products, viz. Diesel fuel petrol, LPG and SKO against which Government has to provide absolutely cash agreement, are Rs.75,620 crore (all OMCs about Rs.1,38,800 crore). The expenditures of sensitive products were enhanced only once during the period, i.e. on 25.06.2011. Since the last adjustment, the globally expenditures of these products have confirmed a exclusive increase. The under-recovery on HSD has gone up from Rs.6.13/litre to Rs.14.29/litre, for SKO (PDS) from Rs.24.16/litre to Rs.31.03/litre and for LPG (Domestic) from Rs.331.13/cylinder to Rs.570.50/cylinder as on 16th Apr 2012. This work out to an under-recovery of Rs.305 crore per day for IndianOil (for all OMCs Rs. 573 crore per day). At the existing costs, the under-recoveries of the Company during the period 2012-13 is calculated to be over Rs.1,08,000 crore (for all OMCs over Rs.2,04,000 crore).
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