Friday, 18 April 2014

Diesel Under-Recovery declines to Rs 5.49/litre for the fortnight commencing 16.4.2014

Combined Daily Under-Recovery on sale of Diesel, PDS Kerosene and Domestic LPG lower at Rs 337 crore effective from 16.4.2014 

Daily Crude oil price of Indian Basket increased to US$ 106.52/bbl on 15.4.2014 

The Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas has reviewed international prices of crude oil and petroleum products during the Ist fortnight of April 2014. Accordingly, the under-recovery on High Speed Diesel (HSD) applicable for 2nd fortnight of April effective 16.4.2014 fell to Rs 5.49 per litre. This was Rs 5.93 per litre during Ist fortnight of April 2014 w.e.f. 01.4.2014. In the case of PDS Kerosene and Domestic LPG the under-recoveries for the month of April 2014 remained same at Rs 34.43 per litre (Rs 36.34 per litre in March 14) and Rs 506.06 per cylinder(Rs 605.80 per cylinder for March’14) respectively.

 Product-wise Under-recoveries of Public Sector Oil Marketing Companies (OMCs):

Product
Unit
Under-recoveries effective 16.04. 2014
( Previous fortnight effective 01.4 2014)
Diesel
Rs/Litre
5.49               (5.93)
PDS Kerosene*
Rs/Litre
34.43              (34.43)
Domestic LPG*
Rs/Cylinder
506.06            (506.06)

*Additionally, a subsidy of Rs 0.82/Litre on PDS Kerosene and Rs 22.58/Cylinder on Domestic LPG is provided by the Government. Their refinery-gate prices are fixed on monthly basis.

Oil Marketing Companies (OMCs),   effective 16th April 2014, are now incurring combined daily under-recovery of about Rs 337 crore on the sale of Diesel, PDS Kerosene and Domestic LPG. This is lower than Rs 342 crore daily under-recoveries during previous fortnight effective 01.04.2014.

The OMCs reported a total under-recoveries of Rs 1, 00,632 crore during Ist nine months of 2013-14 (April-December) on sale of Diesel, PDS Kerosene and Domestic LPG. Following are product-wise details of the under-recoveries:-

Product

Under Recovery (Rs/Crore)

2013-14
(April-December 2013)
2012-13
2011-12
2010-11
Diesel
47,655
92,061
81,192
34,706
PDS Kerosene
22,373
29,410
27,352
19,484
Domestic LPG
30,604
39,558
29,997
21,772
Petrol
--
--
--
2,227
Total
1,00,632
1,61,029
1,38,541
78,190

Regarding daily international crude oil price of Indian Basket as computed/published today by PPAC, the price increased to US$ 106.52 per barrel (bbl) on 15.4.2014 as against US$ 105.91 per bbl on previous trading day of 14.4.2014. In rupee terms also, the price of Indian Basket increased to Rs 6418.90 per bbl on 15.04.2014 as compared to Rs 6383.20 per bbl on 14.04.2014. This was due to increase in price in dollar terms and rupee appreciation. Rupee closed slightly stronger at Rs 60.26 per US$ on 15.04.2014 as against Rs 60.27 per US$ on 14.4.2014.   

The table below gives details in this regard                              

Particulars
Unit
Price on April 15, 2014(Previous trading day i.e. 14.04.2014)
For Pricing Fortnight (Effective 16.4.2014) March 27 to April 10, 2014
Crude Oil (Indian Basket)
($/bbl)
106.52           (105.91)
104.25
(Rs/bbl
6418.90         (6383.20)
6262.30
Exchange Rate
(Rs/$)
60.26            (60.27)
60.07


Indian Industry has an Important Role to Play in Developing Standards: Cabinet Secretary Comprehensive Law to Look at Standards in a Composite Manner Extremely Important: Rajeev Kher

Shri Ajit Seth, Cabinet Secretary, Government of India today said that the Indian industry has an important role to play in developing standards in India. Shri Seth was delivering the inaugural address at the “Standards Conclave: Role of Standards in International Trade: Challenges Opportunities and Issues” organized by the Ministry of Commerce and Industry and Confederation of Indian Industry here today. 

Shri Seth observed that India does not have a standard driven culture and India’s manufacturing sector has been accustomed to developing in an environment where standards have been lax. He called for appropriate legislation to be put in place to provide an instrument to notify standards. 

He observed that internationally the role of standards had gained importance with the adoption of SPS and TBT Agreements during the Uruguay Round of WTO. He felt that India needs to take a leading role in the identification and development of standards. This will help improve the competitiveness of Indian industry and help it to improve its export prospects. 

In his address, Shri Rajeev Kher, Commerce Secretary, Department of Commerce, Government of India stated that standards had effectively replaced tariffs in the international trade discourse. He stated that development of rules had gained greater importance than tariffs. Countries around the world are developing higher standards and are designing products to meet these standards. He felt that the time had come for Indian industry to do the same. 

Elaborating further, Shri Kher highlighted how different countries in Africa had upgraded their standards for various products and many of these were now at par with developed country standards. He felt that Indian industry may find itself shut out of some of these markets if it does not enhance its quality. 

The Commerce Secretary also spoke of the enclavisation of international trade with the creation of mega trading blocs like the Trans Pacific Partnership (TPP), the Trans Atlantic Trade and Investment Partnership (TTIP) and the Regional Comprehensive Economic Partnership (RCEP) was leading to a paradigm shift in the trade regime. The emphasis had moved away from tariffs and these blocs would now be focused on creation of rules, regulations and standards. He felt that India needs to find a place in this new architecture. 

Shri Kher was of the view that government and industry needed to be on the same page in terms of development of standards. He felt that a comprehensive law needed to be formulated under which standards development could take place. He observed that there was a need to mainstream the acceptance of standards even within the Government of India and a consultative mechanism needed to be put in place to bring all stakeholders together while formulating standards. 

In his address Mr. Sunil Soni, Director General, Bureau of Indian Standards stated that India needed to greater advantage of the SPS and TBT agreements under the WTO. Of the 18,000 notifications issued under these agreements from various countries, regulations issued from India numbered only 93. Even these few were the topic of intense debate. This pointed to the need to put in place a sound regulatory environment in the country. 

Mr. Soni observed that while the BIS is the apex organization for the formulation of standards in India, there were other organisations involved in this process as well. He felt that there was a need to develop synergy between the BIS and these organisations. 

In his opening remarks, Mr. Deep Kapuria, Chairman, CII MSME Council and Chairman, Hi-Tech Group stressed on the need to make compliance with standards affordable. He felt that the high cost of compliance may lead to a large number of MSME’s not being able to export their products. 

Mr. Chandrajit Banerjee, Director General, CII in his welcome address stated that the enhancement of standards would not only boost India’s exports but also would restrict inferior imports which are causing serious injury to the domestic industry.