Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
CO-PRESENTED BY
LIVE TV DownloadNews18 App
News18 English
272
nda:
Needmore seats to Win
Needmore seats to Win
upa:
»
1-min read

Daily Fuel Price Revisions to Boost OMCs' Bottomlines: Report

A pilot for the daily price revision was launched in Puducherry, Vizag in Andhra, Udaipur in Rajasthan, Jamshedpur in Jharkhand and Chandigarh from May 1 and will be gradually extended to other parts of the country.

PTI

Updated:May 8, 2017, 11:23 PM IST
facebookTwittergoogleskypewhatsapp
Daily Fuel Price Revisions to Boost OMCs' Bottomlines: Report
Representative image. (Reuters)
Loading...
Mumbai: Government decision to revise retail fuel prices daily is likely to result in improvement marketing margins for oil companies leading to better profitability, says a report.

In a report, India Ratings on Monday said the move, effective May 1 in select cities, is another positive structural change in the downstream sector after petrol price deregulation in 2010, diesel de-regulation in 2014, direct benefit transfer for LPG, give-it-up scheme for LPG, lowering PDS kerosene allocation and gradual hike in its prices.

This has resulted in lower under-recoveries which in turn has led to the state-run oil marketers' market borrowing to fall steeply. Between financial year (FY) 2013-2014 and 2015-2016, gross borrowing of state-run oil marketing companies (OMCs) fell by 29 per cent and interest cost has consequently declined by 37 per cent, it said.

A pilot for the daily price revision was launched in Puducherry, Vizag in Andhra, Udaipur in Rajasthan, Jamshedpur in Jharkhand and Chandigarh from May 1 and will be gradually extended to other parts of the country.

The report listed three reasons for possible increase in marketing margins for state-run IndianOil, Hindustan Petroleum and Bharat Petroleum: First this gives companies greater flexibility to pass on crude price volatility to the end-consumers; secondly it lowers the need for steep price hikes as in the fortnightly pricing regime thus lowering the possibility of political intervention; and lower chances for hoarding by dealers in anticipation of price hike.

Stating that the daily price revision is the best global practise, it said in the US, where the prices are revised daily, the maximum upward price change was 60 paisa/litre, while the maximum cut was 50 paisa/litre with a median change of around 1 paisa/litre in fiscal 2017. Against this back here the maximum hike in the year was Rs 3.38/litre, and maximum cut Rs 2.25/litre for petrol.
(Get detailed and live results of each and every seat in the Lok Sabha elections and state Assembly elections in Andhra Pradesh, Odisha, Arunachal Pradesh and Sikkim to know which candidate/party is leading or trailing and to know who has won and who has lost and by what margin. Our one-of-its-kind Election Analytics Centre lets you don a psephologist’s hat and turn into an election expert. Know interesting facts and trivia about the elections and see our informative graphics. Elections = News18)
| Edited by: Nakshab Khan
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwittergoogleskypewhatsapp
 
 
Most Active
Company Price Change %Gain
Reliance 1,331.50 -0.18
SBI 351.50 2.72
GRUH Finance 314.20 -4.70
ICICI Bank 424.30 3.27
IndusInd Bank 1,634.20 2.22
Company Price Change %Gain
GRUH Finance 313.00 -4.51
Reliance 1,332.25 -0.27
Axis Bank 788.30 1.45
SBI 350.80 2.48
SpiceJet 137.65 6.62
Top Gainers
Company Price Change %Gain
Bharti Airtel 350.85 3.56
Larsen 1,526.65 3.42
ICICI Bank 424.30 3.27
M&M 660.25 3.24
Eicher Motors 20,932.90 3.01
Company Price Change %Gain
Bharti Airtel 350.70 3.63
Larsen 1,526.60 3.45
ICICI Bank 423.65 3.18
M&M 659.65 3.15
SBI 350.80 2.48
Top Losers
Company Price Change %Gain
ONGC 171.35 -1.61
Tech Mahindra 734.00 -1.25
HCL Tech 1,055.15 -1.05
HUL 1,745.00 -0.50
Wipro 280.75 -0.51
Company Price Change %Gain
ONGC 171.50 -1.47
HCL Tech 1,055.70 -1.02
NTPC 129.40 -0.38
HUL 1,745.95 -0.29
TCS 2,049.00 -0.23

Live TV

Loading...
Countdown To Elections Results
  • 01 d
  • 12 h
  • 38 m
  • 09 s
To Assembly Elections 2018 Results