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RIL seeks Rs 400 crore from oil PSUs
April 25, 2003 13:56 IST
Reliance Industries is seeking about Rs 400 crore (Rs 4 billion) from state-owned oil retailers in unrealised amount on liquefied petroleum gas and kerosene, it sells to them.
"Public sector oil firms IOC-IBP, BPCL and HPCL have stopped paying import parity prices for the petroleum products they buy from RIL's Jamnagar refinery. The price cap has put RIL into huge financial hardship," sources said in New Delhi.
The oil marketing companies have frozen the refinery transfer price on LPG since November 2002, when the price was $300 a tonne, while kerosene prices were capped at January prices.
LPG prices have since moved up to $350 a tonne.
Sources said RIL has already written to the petroleum ministry accusing oil marketing companies of reneging on product offtake agreement and has sought help in realizing close to Rs 400 crore in dues from oil PSUs.
Senior IOC officials, however, said the oil retailers had frozen the refinery transfer price of RIL, Mangalore Refinery and Petrochemicals, Oil and Natural Gas Corporation and Gail as well as from their own refining divisions, in a move to check losses.
"We have not been allowed to revise prices of LPG and kerosene in spite of firming up of crude prices. The subsidy provided by the government (of Rs 68 on LPG and Rs 2.5 on kerosene over an above the retail selling price) was insufficient to cover the cost," they said.
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