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Pricing under APM

Consumer prices fixed by the Govt. Assured reimbursement of costs to OMCs Assured 12% post tax return returns on investment. Pricing under APM. Pricing Post APM Dismantling. Refinery transfer prices (RTP) of products on Import Parity Principle (IPP)

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Pricing under APM

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  1. Consumer prices fixed by the Govt. Assured reimbursement of costs to OMCs Assured 12% post tax return returns on investment Pricing under APM

  2. Pricing Post APM Dismantling • Refinery transfer prices (RTP) of products on Import Parity Principle (IPP) • RTPs of MS/HSD on Trade Parity effective Jun 06 • Limited subsidies on PDS SKO and Dom. LPG • Revision in selling prices of MS, HSD, PDS SKO & Dom. LPG basis Govt. approval • Selling prices of other products market determined • Phased deregulation of Marketing activities • Lubes - Nov 1993 • Bitumen – Aug 1997 • FO, LSHS, Naphtha - Apr 1998 • ATF - Apr 2001 • MS, HSD, SKO & LPG – Apr 2002

  3. Import Parity Price (IPP) FOB & Premium ($/bbl) (Basis Published Quotes by Platts and Argus) Ocean Freight ($/MT) (Middle East to Port Refinery Location) Exchange Rate (Rs./$) (for conversion of $ prices to Rupees) Import Duties Import Incidental Elements (Ocean Loss, LC Charges, Insurance, Wharfage etc.) = Import Parity Price

  4. Export Parity Pricing (EPP) FOB & Premium ($/bbl) (Basis Published Quotes by Platts and Argus) Exchange Rate (Rs./$) (for conversion of $ prices to Rupees) Advance Licence Benefit on Crude (Rs/KL) (Based on Custom Duty of Crude) = Export Parity Price

  5. Trade Parity Pricing (TPP) 80% of Import Parity Price 20% of Export Parity Price = Trade Parity Price

  6. Periodicity of Pricing Revision • RTP of MS, HSD, FO & LSHS, Naphtha, Bitumen, ATF (Domestic) etc. revised fortnightly • RTP of ATF (International), SKO & LPG revised monthly • RTP of Speciality Products – Hexane, Solvent, JBO, MTO revised Monthly.

  7. Pricing MS/HSD/PDS SKO/Domestic LPG • Pricing is solely dependent on Town code irrespective of the source of supply if supplies are within state. • Supplies are only on Delivered basis. • Government control on Retail Selling Prices IND SKO/LDO/FO/LSHS/Naphtha • Pricing is on the supply location – Ex MI. • Supplies are Delivered & EX MI only. • Discounts/Delivery charges are linked to supply points. • State surcharge in case of Ex MI will be that of the state of supply plant. • No control of Government on Retail Selling Prices

  8. Pricing of Controlled Products • Pricing of MS, HSD, SKO & LPG being continued on APM structure • Uniform ex-storage selling price for all refineries including inland refineries • Depot prices worked based on • NRF from nearest refinery • Shrinkage allowances and local levies • State surcharge • Excise duty

  9. Retail Selling Price (RSP) • Retail selling prices at retail outlets are worked out basis: • Price at nearest depot • Road Delivery charges • Sales Tax • Dealer commission • Local levies & • Shrinkage allowance for hilly areas

  10. Buildup of MS RTP

  11. Buildup of HSD RTP

  12. Composition of RSP of HSD

  13. Buildup of RTP : FO 380 cST Marketing Cost & Margin of Rs. 2090/MT is added to RTP to workout BCSP.

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