Finmin aims to make substantial savings in oil subsidy payouts
Alarmed by the R1.7-lakh-crore oil subsidy demand for this fiscal, the finance ministry has decided to revisit a suggestion made by expert committees in the past: Work out the subsidy entitlement of oil marketing companies (OMCs) according to 100% export-parity pricing of petroleum products. Under this system, the refinery-gate price of products — petrol, diesel, cooking gas and kerosene — due to OMCs will be arrived at as an average of export (FOB) prices of these product in select markets. The difference between the price realised by OMCs — they sell below cost in the subsidy regime — and the export price determined will be the “under-recoveries”, compensated through subsidy.
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Links:
[1] http://admin.indiaenvironmentportal.org.in/news/full-export-parity-price-petro-products-likely
[2] http://admin.indiaenvironmentportal.org.in/category/author/prashant-mukherjee
[3] http://admin.indiaenvironmentportal.org.in/category/newspaper/financial-express-new-delhi
[4] http://admin.indiaenvironmentportal.org.in/category/thesaurus/fuel-pricing
[5] http://admin.indiaenvironmentportal.org.in/category/thesaurus/subsidies
[6] http://admin.indiaenvironmentportal.org.in/category/thesaurus/diesel
[7] http://admin.indiaenvironmentportal.org.in/category/thesaurus/lpg
[8] http://admin.indiaenvironmentportal.org.in/category/thesaurus/kerosene
[9] http://admin.indiaenvironmentportal.org.in/category/thesaurus/energy-policy
[10] http://admin.indiaenvironmentportal.org.in/category/thesaurus/indian-oil-corporation-ioc
[11] http://admin.indiaenvironmentportal.org.in/category/thesaurus/energy
