The subsidy burden of upstream oil companiesOil Natural Gas Corporation (ONGC) and Oil India Ltd (OIL) have more thandoubled in the third quarter ended December 31. ONGC’s subsidy burden for thequarter is Rs 8,875 crore, compared to Rs 4,222 crore in the correspondingquarter of last year. OIL’s burden is expected to jump 135 per cent to Rs 1,313crore This year, the upstream companies willprobably have to bear the highest ever burden towards oil subsidy, as priceshave not been increased for long and under-recoveries of the three oilmarketers will be at a record high. The two government upstreamcompanies, along with GAIL, make good a third of the losses made by governmentoil marketing companies (OMCs) on selling diesel, kerosene and LPG atgovernment rates.
The OMCs — Indian Oil, Bharat Petroleum andHindustan Petroleum — purchase crude oil at market rates but are required tosell diesel, kerosene and liquefied petroleum gas (LPG) at government-setprices. These losses are usually compensated by a cash subsidy from thegovernment and discounts on crude purchase from ONGC and OIL. For the quarterjust ended, the OMCs incurred a revenue loss of Rs 32,413 crore on regulatedsale of the three products, of which a third, or Rs 10,805 crore, has to comefrom ONGC, Oil India and GAIL. Currently, the three OMCs are incurring arevenue loss of Rs 442 crore daily on sale of the three products. Their loss isRs 12.95 on every litre of diesel, Rs 28.50 on every litre of kerosene and Rs326 on every domestic LPG cylinder. The prices of these three politicallysensitive products that account of around 60 per cent of OMC sales, have notbeen revised since June 25 last year. Their prices are unlikely to be revisedtill early March, when five state assembly polls conclude.
In 2010-11, upstream companies were madeto bear 38.8 per cent of the OMCs’ gross revenue loss. This year, so far theone-third formula has been followed for calculating their subsidy share.However, watchers expect the share to be increased during the fourth quarter.
| Company Name | CMP |
|---|---|
| ONGC | 244.35 |
| Oil India | 445.05 |
| Jindal Drilling&Inds | 745.70 |
| Hind Oil Exploration | 194.15 |
| Deep Industries | 614.05 |
| View more.. | |
MoneyWorks4Me rating and ranking of funds for SIP is available to subscribers only. Moneyworks4Me is not a rating and ranking agency, however it is required that users have a way of selecting funds and building a Portfolio. The method used by it are described below to enable users to understand the logic behind the rating and ranking Subscriber will find more details on this in the various content made available from time to time. In case you need more please write to besafe@moneyworks4Me.com
MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
Make an informed decision for Stocks
Invest using an intelligent system with powerful data-driven tools that help you identify opportunities and make informed buy-hold-sell decisions
Buy quality Stocks when they are available at reasonable prices and supported by an upward price trend and Sell when they are Overvalued using the Decizen Rating System. Covers 3500+ stocks
Limited to the first 10 users today!
Practical Stock Investing Hand Book
By - Raymond Moses
Founder of MoneyWorks4Me | Consultant | Trainer | Author | TEDx Speaker
Register & Get Instant Access!Don't miss out! First 10 users today get it FREE
With this 4 hrs Masterclass, you’ll be able to:
Download APP
