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Year 1 (1998-99)
i) Removal of cost plus formula and payment
to crude producers as percentage of weighted average FOB price
of actual imports
ii) Products to be controlled during
transition
iii) Withdrawal of retention margin concept
for the refineries and refinery gate prices for controlled
products
iv) Products to be decontrolled
v) Exim Policy
vi) Soucing of crude
vii) Customs duties
viii)Increase in prices of :
Kerosene(PDS)
LPG(Domestic)
ix) Freight and other under
recoveries
X) Shipping of crude oil
Year 2 (1999-2000)
i) Payment to crude producers as percentage
of weighted average of FOB
ii) Increase in prices of
Kerosene (PDS)
LPG (Domestic)
iii)Freight and other under recoveries
iv) Rationalisation of duties
Year 3 (2000-01)
i) Payment to crude producers as percentage
of weighted average FOB price
ii) ATF
iii) Increase in prices of
Kerosene(PDS)
LPG (Domestic)
iv) Freight and other under-recoveries
Year 4 (2001-02)
i) Payment of crude producers as percentage
of weighted average FOB price
ii) Increase in prices of :
Kerosene (PDS)
2002 onwards
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75 per cent
MS, HSD, Kerosene, ATF and LPG
Adjusted import parity prices to existing
refineries and tariff adjusted import parity prices to new
refineries
Naphtha, FO, LSHS, Bitumen, Paraffin Wax, etc.
Decanalisation of imports/ exports of all
petroleum products except crude (slop crude and crude condensate),
NGL, ATF, MS and HSD)
Sourcing of crude to be liberlised an import to
be allowed for joint and private sector refineries under actual
user license
Rationalisation done in a phased manner
30 per cent of existing ex-storage point price
33 per cent of subsidy passed on
33 per cent to be passed on, in an equated
manner
Withdrawal of cost plus formula for shipping of
crude oil and more towards market related rates
77.5 per cent
30 per cent of revised ex-storage point price
at the end of year 1
A further 33 per cent of subsidy to be passed
on
A further 33 per cent to be passed on in an
equated manner
To continue
80 per cent
Deregulation of imports and pricing
20 per cent of the revised ex-storage point
price at the beginning of the year
Suitable adjustments in prices to reach subsidy
level at 15% of import parity
Balance subsidy to be passed on, in an equated
manner
82.5%
Suitable adjustments in prices to reach subsidy
level at 33.33% of import parity.
Full deregulation
Transfer of subsidy on SKO (PDS), LPG(Domestic)
and Freight Subsidy on supplies to far-flung areas to the fiscal
budget of the Government
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Implemented. Since import parity prices were
low, as a temporary measure a minimum floor price of Rs.1991 MT
payable under APM was fixed
Consumer prices of MS, HSD, SKO(PDS), ATF and
LPG (Domestic) are being administered by the Government. Prices of
other products have been decontrolled.
The system of retention pricing for all the
refineries has been abolished. Refinery gate prices of controlled
products are being fixed on principles of import parity.
These products have been decontrolled.
Furnace Oil has been decanalised w.e.f.13.7.98.
Naphtha exports have also been decanalised w.e.f. 22.7.1998. In
October’99 export of MS, HSD & ATF has been decanalised.
Private & Joint Sector refineries have been
permitted to import crude oil freely without import license for
actual use in their own refineries.
Custom duty on crude oil has been reduced to 22
per cent in the Union Budget for 1998-99
Action not taken
The consumer price of LPG (Domestic) at
ex-storage point has been increased by Rs.14/cylinder exclusive of
duty, sales tax and other local levies effective midnight of 31st
January/1st February, 99. To reduce the burden on
consumers, the Government has reviewed the cylinder compensation
for the oil companies and have decided presently to reduce the
amount by Rs.10.cylinder and this amount is to be adjusted against
the price increase, thus reducing the subsidy on LPG (Domestic)
further
Freight under-recoveries on HSD to the extent
of 20% passed on in the selling prices effective January 9, 1999.
Cost plus formula withdrawn IOC to finalise COA
on market rates, on behalf of industry.
Implemented. A minimum floor price of Rs.1991
MT payable under APM shall continue to operate.
Action yet to be taken
Action yet to be taken
Action yet to be taken
Not implemented. Only crude product duties
reduced by 2% in the Union Budget for 1999-2000.
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