Petro-products prices to come down by 2002: Ramamurthi

The terminal year for dismantling will be 2001-02, Ramamurthi said while giving details of the various levels of duty structure that would result from dismantling of APM.

Noting that the process of dismantling APM in the petroleum sector had already been initiated from April 1, this year, he said cost plus formula for indigenous crude oil producers had been withdrawn, however, as a temporary measure and a minimum floor price has been fixed. The system of retention pricing for all the refineries has been abolished, he said.

The minister said,however, that refinery gate prices of controller products like petrol, high speed diesel, kerosene, liquefied petroleum gas (LPG) and aviation turbine fuel (ATF) are being fixed on principles of "adjusted import parity" for price for existing refineries.

Ramamurthi said consumer prices of petrol, diesel, kerosene (public distribution system), LPG (for domestic use) and ATF continue to be administered and consumer price of one of the five products, namely diesel, is being fixed on principles of import parity pricing up to ex-storage point level.

The prices of other petroleum products like naphtha, furnace oil, bitumen and paraffin-wax have been decontrolled from April 1 this year and oil companies have been allowed to fix their prices based on market consideration, the minister said, adding that cost plus formula for shipping of crude oil has been withdrawn.

Imports and exports of all petroleum products, except crude (slop crude and crude condensate), ATF, petrol and diesel will be decanalised during thetransition period, he said. Customs duty on crude oil has been reduced from 27 per cent to 22 per cent from June two, this year, he added.