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Tuesday, June 7, 2016

State Refiners(IOC:BPCL and HP) Clinch Deal With RIL, Essar To Restart Diesel Buy on Revised Terms

State-owned Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corp have struck a temporary deal with Reliance Industries and Essar Oil to resume buying petrol and diesel from private refiners on revised terms.

Short of own production, state refiners Indian Oil Corporation, Hindustan Petroleum Corp and Bharat Petroleum Corp buy about 12 million tonnes of diesel annually from the Jamnagar refineries of RIL and the Vadinar unit of Essar.

The arrangement, however, broke down earlier this year, with the private refiners seeking a better deal.

Now, an ad hoc deal has been reached wherein the private refiners will pay the central sales tax and state-run marketing firms will bear the cost of coastal shipping.

Note

The broke down earlier this year, with the private refiners seeking a better deal.

The private refiners previously paid central sales tax as well as coastal freight for shipping the fuel from their plants in Gujarat to consumption points in southern and eastern India

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