IndianOil’s plea to government on motor spirit price
New Delhi   20-Apr-2012

The International motor spirit prices have gone up progressively and stand at USD 132.45 per barrel in the current pricing period. This is much higher than the price of USD 109.03 per barrel at which IndianOil and other Oil Marketing Companies (OMCs) are selling MS (excluding State levies). The company's inability to effect the price increases during the period December l6, 2011 to March 31.2012 has resulted into total under-recoveries of Rs. 1036 crore (for all OMCs about Rs. 2287 crore). IndianOil has suffered under-recoveries of Rs. 331 crore (Rs. 745 crore for all OMCs) in the first 15 days of April 2012. The company, along with other OMCs has, therefore, requested the Government to declare MS a regulated product temporarily and provide hundred percent cash compensation to the OMCs and reduce the excise duty on MS from Rs. 14.78 per litre by an amount equivalent to the under-recoveries on MS. At the current rates, the under-recoveries of the company during the year 2012-13 is estimated to be over Rs. 1,08,000 crore (for all OMCs over Ps. 2,04,000 crore).