The Hindu Business Line : Petro purchases: Oil marketing cos may seek more rebates

AFTER locking horns over the discount offered by the private and standalone refiners on the petroleum products supplied to the public sector oil marketing companies for retail sale, the marketing and finance heads of these companies may approach the refiners for more rebates.

According to sources, a meeting was held to evaluate the offer made by Reliance Industries Ltd (RIL) and standalone refiners such as MRPL.

Indications are that the marketing companies would be holding another round of meetings with RIL soon and seek further discount.

The top honchos of the marketing companies are trying to work out the best discount they can get from the private and standalone refiners on the petroleum products, particularly kerosene and LPG.

The negotiations are on between the two entities for a discount on fuel purchase price in order to ease the subsidy burden of the marketing companies.

The refiners have offered a discount up to Rs 1,500 crore to all marketing companies.

RIL, which has categorically refused to be a party to subsidy burden sharing, has assured that it is ready to consider offering the products on better commercial terms.

RIL is understood to have offered a discount worth Rs 750 crore and MRPL has offered a discount of Rs 200-250 crore on import parity price.

A final decision on the discount price is now expected only after the response from RIL is received, sources said.

The marketing companies have been seeking higher quantities of kerosene for 2005-06 at a price that could offset their subsidy burden.

RIL has agreed to supply 1.13 million tonnes of kerosene and 2.6 million tonnes of LPG in this fiscal to IOC.

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