OMCs agree to refund Rs 142.88 cr discounts to MRPL
MRPL on Thursday said it will receive Rs 142.88 crore as public sector OMCs like - IOC, HPC and BPC - have agreed to refund discounts extended by the company on domestic liquefied petroleum gas and kerosene sold under the public distribution system.
By PTI |
MUMBAI: State-run Mangalore Refinery and Petrochemicals Ltd (MRPL) on Thursday said it will receive Rs 142.88 crore as public sector Oil Marketing Companies (OMCs) like -- IOC, HPC and BPC -- have agreed to refund discounts extended by the company on domestic liquefied petroleum gas and kerosene sold under the public distribution system.
The discounts of Rs 142.88 crore were accounted during the first two quarters of the current financial year, due to pending receipt of formal confirmation from OMCs toward the payment of full Refinery Transfer Prices (RTP), MRPL informed the Bombay Stock Exchange.
These discounts would now be reversed in the third quarter resulting in a credit of Rs 142.88 crore. The impact of getting full RTP without discounts for the full financial year would be around Rs 290 crore.
Public sector oil marketing companies like Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation have now agreed to make payment of full Refinery Transfer Prices (RTPs) to MRPL towards the sale of LPG in domestic market and kerosene under the PDS scheme with effect from April 1, without deducting any discounts.
Earlier MRPL approached the state-owned oil marketing companies to consider refunding the discounts extended by the company on domestic liquefied petroleum gas and kerosene sold under the public distribution system.
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MRPL saw its net profit during the second quarter ended September 30, declined by 94.58 per cent due to a sharp reduction in product prices, increased exports and discounts on LPG to OMCs. The company earned a lower net profit of Rs 9 crore for the second quarter of the financial year 2006-07 as against Rs 166 crore in the corresponding quarter last year.Earlier, RIL had declined to offer any discounts to retailers during the current fiscal on the ground that it was not part of the subsidy-sharing mechanism extended by the Government.
Shares of the company were trading at Rs 42.45, 1.07 per cent on the BSE.
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