Reliance reopens 900 oil stations, selling at PSU rates

According to Reliance’s refinery business head P Raghavendran, most of the oil stations are in the Western and Southern markets are selling fuels at the price being offered by state-run oilmarketers. The prices of governent firms are cheaper than market costs due to subsidy.

"We are selling where we can match PSU price," he said.

Raghavendran said we are the only nation that is so heavily dependent on imports to meet oil needs yet subsidies the fuel heavily.

IOC, BPCL and HPCL get bonds from the government and discounts from crude producer ONGC for selling petrol, diesel, domestic LPG and kerosene below cost.

Unlike sectors like fertilizers, the oil subsidy is limited only to public sector firms, he said, and pointed out that in the 2008-09 fiscal, the government issued oil bonds worth over Rs 103,000 crore to PSU fuel retailers for selling petrol, diesel, domestic cooking gas and kerosene below cost.
The same compensation is not given to private retailers like Reliance Industries, Essar and Royal Dutch Shell, he pointed out.

Source:http://business.rediff.com/report/2009/nov/24/reliance-reopens-900-oil-stations-selling-at-psu-rates.htm