Private refiners made Rs 10k crore on flawed pricing: CAG A draft report of Comptroller & Auditor General (CAG) has criticised state-run oil companies for using a pricing system that helped private refiners gain Rs 10,196 crore in five years. The report has also censured the oil ministry for causing a revenue loss of over Rs 1,56,000 crore over the same period. The draft also criticised state-run fuel retailers for buying petrol, diesel, cooking gas and other petroleum products from private and standalone refineries located in India on the basis of a formula that gave 80% weightage to import parity pricing (IPP) and 20% export parity pricing (EPP), also known as trade parity pricing, or TPP. The transaction helped private refineries get benefits worth Rs 10,196 crore while standalone refineries made Rs 9,485 crore during the five-year period, the draft report said. Standalone refineries are owned by public sector companies but do not belong to the three fuel retailers - Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp. economictimes.indiatimes/news/news-by-industry/energy/oil-gas/private-refiners-made-rs-10k-crore-on-flawed-pricing-cag/articleshow/21609062.cms
Posted on: Mon, 05 Aug 2013 15:52:33 +0000
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