IMPLEMENTATION OF BS-III/IV FUELS
- BS-IV Petrol and Diesel were introduced in 13 identified cities on a single day from April 1, 2010, in line with the road map laid down in the auto fuel policy.
- All these 13 cities account for about 17% of the total diesel and 27% of the total petrol consumption in the country.
- Similarly, BS-IV petrol and diesel were introduced in the rest of the country between April 1 and September 22, 2010, much before the deadline of October 1, 2010 approved by the government.
- Efforts are being made to progressively expand coverage of BS-IV fuels with introduction of these fuels to 50 more cities to phases by 2015.
- Selection of additional cities for extension of supply of BS-IV fuels is based on the pollution level and vehicular pollution in the city. Cities with population of more than 1 crore and state capitals are being given preference.
- Accordingly, BS-IV auto fuels have also been introduced in additional 10 cities namely Puducherry, Mathura, Vapi, Iamnagar, Ankleshwar, Hisar, Bharatpur, Daman, Diu and Silvassa during 2012.
PRICING OF PETROLEUM PRODUCTS
- The Administered Pricing Mechanisarn (APM) or cost plus pricing for petroleum products which was introduced in 1976 was abolished with effect from April 1, 2002, consequent to the de-regulation of the oil sector in India.
- Government notified that pricing of all petroleum products except PDS kerosene and domestic LPG would be market determined.
- In June 2006, based on the recommendations of the Rangarajan Committee, the Government changed the pricing mechanism for petrol and diesel from import parity to trade parity (trade parity being the weighted average of import parity and export parity prices in the ratio of 80:20) while the pricing of PDS kerosene and domestic LPG continues on import parity basis.
- The Government also took a decision ‘in principle’ on June 25, 2010 to make the price of diesel market determined, both at refinery gate and at retail level. However, in order to insulate the common man from the impact of rise in international oil prices and domestic inflationary conditions, Government continues to modulate the RSP of diesel.
- Thus, the RSI of diesel is below the required market price, resulting in incurrence of under-recovery to the OMCS.
- Govt has been decided to continue subsiding PDS kerosene and domestic LPG.
INDIAN OIL CORPORATION LIMITED (Indian Oil)
- Indian Oil is India’s flagship national oil company with works in refining, pipeline transportation and marketing of petroleum products to exploration and production of crude oil and gas.
- With a sales turnover of Rs.4,09,957 crore (US $ 85 billion) for the year 2011-12, Indian Oil is the country’s largest commercial enterprise with Maharatna status and India’s highest ranked company in the prestigious Fortune ‘Global 500′ listing of the world’s largest corporates.
- The Indian Oil Group of companies own and operate 10 of India’s 22 refineries with a combined refining capacity of 2 million metric tonnes per annum.
- Indian Oil’s cross-country network of crude oil and product pipeline spans 10,909 km with a capacity of 55 MMTPA of crude oil and petroleum products and 96 MMSCMD of gas. This network is the largest in the country.
- It operates more than 20,000 outlets, the largest and most extensive network of retail outlets.
- Indian Oil has grown by expanding its own operations, bringing independent refineries like Chennai Petroleum Corporation Ltd (CPCL) and Bongaigaon Refinery and Petrochemicals Ltd. (BRPL) under its fold and by merging Assam Oil Company (AOC) and IBP Co. Ltd with itself.
- Indian Oil has set up subsidiaries in Sri Lanka, Mauritius and the United Arab Emirates.
