IOC hikes naphtha price by Rs 330 per tonne

Indian Oil Corporation (IOC) has increased the price of naphtha with effect from October 1, 2002. Major fertiliser companies, sourcing the p...

Indian Oil Corporation (IOC) has increased the price of naphtha with effect from October 1, 2002. Major fertiliser companies, sourcing the product from IOC may get affected due to the Rs 300-330 per tonne increase in naphtha. The company has also increased the price of ATF by around Rs 1,300 per kilo litre.

According to IOC officials, the prices have been increased for other consumers also. The prices at the various refineries have been increased by around Rs 300-Rs 330 per tonne of naphtha. With different states levying different excise duties, the price of the feedstock at the point of sale would vary, the official added.

In August, the company had reduced the price of naphtha by Rs 140-Rs 180 per tonne which is around Rs 13,290-Rs 13,430 and in September the price had been increased to Rs 14,200-Rs 14,490. The company revises the price of naphtha every fortnight. Thus the price of naphtha would be ranging between Rs 14,530 to Rs 14,810.

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As per industry sources, IOC supplies naphtha to four major fertiliser companies which include IFFCO, Zuari Industries Ltd, Chambal Fertilisers and Mangalore Chemicals and Fertilisers Ltd.

The Phulpur unit of IFFCO is the biggest customer with a consumption of 60,000 tonne of naphtha annually, followed by the Kota unit of Chambal fertiliser which buys 50,000 tonne of naphtha from IOC annually. Zuari and MCFL have a contract with IOC for 25,000 tonne and 15,000 tonne of the product annually.

According to the IOC official, the company has also revised the price of ATF, which is a decontrolled fuel, with effect from May 1, at all the storage points. The company has increased the price at most of the storage points by an average of Rs 1,300 per kilo-litre.

IOC is a leader in the ATF business and has a market share of over 65 per cent. The entire aviation fuel requirement of the Indian Navy and a major requirement of the Indian Army is met by IOC. Apart from this, Air-India and Indian Airlines also buy their requirements from IOC, in addition to some private airlines.

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