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Petrol cheaper by over Rs 2/litre, diesel by Re 1 since daily revision

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Petrol Price

New Delhi, July 3 : While petroleum is yet to come under the GST, since the dynamic pricing regime came into effect pan-India from last month, petrol prices have fallen by over Rs 2 a litre till date and of diesel by more than Re 1.

Petrol prices per litre have decreased by Rs 2.35, and of diesel by Rs 1.02, ever since the daily revision in rates was implemented throughout the country from June 16. On that day, petrol cost Rs 65.48 a litre in Delhi, while diesel sold for Rs 54.49 per litre.

Prices vary at locations according to state taxes. The Goods and Services Tax (GST), which rolled out pan-India, except in Jammu and Kashmir, from July 1 is a unified national tax subsuming the earlier myriad central and state levies and the petroleum industry has been demanding inclusion in the new regime so as not to lose the benefit of input tax refund available under the GST.

Following the success of a pilot project in five cities, India switched to the daily pricing mode for transport fuels in line with global rates.

Earlier, the state-run oil marketing companies (OMCs) used to review and revise retail fuel prices every fortnight on the basis of global crude oil prices, while the revision took effect from midnight.

Prices of petrol and diesel are now revised at 6 a.m. every day.

Dynamic fuel pricing is followed in many developed countries and India opted for it as a response to the recent volatility in global crude oil prices.

According to the government, this move will ensure that the benefit of even the smallest change in international oil prices can be passed down the line to the dealers and the end-users.

The pilot project on daily revision of retail selling prices was implemented in Udaipur, Jamshedpur, Visakhapatnam, Chandigarh and Puducherry from May 1.

The accumulated daily revision leading to a decrease of over Rs 2 in petrol, for instance, is the result of the recent trend in global prices.

The Indian basket of crude oils again went below the psychologically important $50-a-barrel mark last month as geopolitical tensions in the Middle East raised market concerns.

Crude prices have continued on their downward spiral following the 13-nation Organisation of Petroleum Exporting Countries (OPEC) cartel’s decision in May to extend output cuts in response to a supply glut that has been pushing down prices over a prolonged period.

According to the latest official data, the Indian basket, comprising 73 per cent sour-grade Dubai and Oman crudes, and the balance in sweet-grade Brent, closed trade on the previous trading day on Friday at $46.72 for a barrel of 159 litres.

Business

Jio signs $1 bn loan to finance goods procured from Samsung, Ace Technologies

The facility was arranged by Australia and New Zealand Banking Group Limited and The Hongkong and Shanghai Banking Corporation Limited, the statement said.

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Samsung

Mumbai, June 25 (IANS) Reliance Jio Infocomm (RJIL) has signed a $1 billion equivalent term loan facility covered by Korea Trade Insurance Corporation (K-SURE) on June 22, 2018, a company statement said here on Monday.

It will be used to finance goods and services procured primarily from Samsung Electronics and Ace Technologies Corp. It has “door to door tenor of 10.75 years”, the statement said.

“The facility is K-SURE’s largest deal in India as well as the largest deal supported by K-SURE in the telecom sector globally,” it said, adding that: “This transaction marks the fourth K-SURE covered facility for Reliance group in last 5 years and the second K-SURE covered facility for RJIL in the last 3 years.”

The facility was arranged by Australia and New Zealand Banking Group Limited and The Hongkong and Shanghai Banking Corporation Limited, the statement said.

In addition, it saw participation from BNP Paribas; Commerzbank AG; Citibank N.A.; ING Bank; JPMorgan Chase Bank, N.A.; Mizuho Bank, Ltd.; MUFG Bank, Ltd. and Banco Santander, S.A.

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Global cues depress equity indices, Sensex ends 200 points lower

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SENSEX NIFTY MARKET

Mumbai, June 25: Weak global cues pulled the key Indian equity indices lower on Monday, with the benchmark BSE Sensex falling over 200 points.

According to analysts, heavy selling pressure was witnessed in the auto, banking and capital goods stocks.

Globally, stock markets slumped due to the escalating trade war concerns.

In the domestic market, the wider Nifty50 of the National Stock Exchange (NSE) provisionally closed at 10,762.45 points (3.30 p.m.), down 59.40 points or 0.55 per cent from the previous close of 10,821.85 points.

Similarly, the barometer 30-scrip Sensex of the BSE, which had opened at 35,783.75 points, closed at 35,470.35 points (3.30 p.m.) — down 219.25 points or 0.61 per cent from its previous session’s close of 35,689.60 points.

The Sensex touched an intra-day high of 35,806.97 points and a low of 35,430.11. The BSE market breadth was bearish with 1,733 declines and 855 advances so far.

The top gainers on the Sensex were Infoys, Kotak Mahindra Bank, Vedanta, IndusInd Bank, HDFC Bank whereas Tata Motors (DVR), Tata Motors, ICICI Bank, Coal India and Larsen and Toubro were the major losers.

On the NSE, Vedanta, Sun Pharma and Ultratech Cement were the highest gainers while Tata Motors, BPCL and Hindustan Petroleum lost the most.

IANS

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Oil drops after OPEC+ output deal, but markets to stay tight

Prices initially jumped after an OPEC deal to increase output was announced late last week, as it was not seen boosting supply by as much as some had expected.

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OPEC

Despite the increase, which is intended to stop the gap between global supply and demand from becoming too wide, analysts said global oil markets would likely remain relatively tight this year.

Brent crude futures were down 78 cents at $74.78 a barrel at 0917 GMT, while U.S. light crude was up 25 cents at $68.83 a barrel, supported in part by a Canadian supply outage.

Prices initially jumped after an OPEC deal to increase output was announced late last week, as it was not seen boosting supply by as much as some had expected.

OPEC and non-OPEC partners including Russia have since 2017 cut output by 1.8 million bpd to tighten the market and prop up prices.

“As yet there is no plan as to how the limits will be reallocated. One simple approach would be to reduce the limits of those not producing enough by 600,000 bpd and increase the limits of members with spare capacity by 600,000 bpd – this would enable 100 percent compliance,” said Callum MacPherson, Investec head of commodities.

“However, it seems unlikely members like Venezuela would give up unused limits in this way. Instead those unused limits might be left in place, so 100 percent compliance would in theory mean an additional 1.2 million bpd hitting the market, even though this would not be achievable in practice.”

Largely because of unplanned disruptions in places like Venezuela and Angola, the group’s output has been below the targeted cuts, which it now says will be reversed by supply increases, especially from OPEC leader Saudi Arabia. Analysts warn however there is little spare capacity for large-scale output increases.

After officially meeting on Friday, OPEC gave a press conference on Saturday that implied a bigger increase in supply.

“Saturday’s OPEC+ press conference provided more clarity on the decision to increase production, with guidance for a full 1 million bpd ramp-up in 2H18,” Goldman Sachs said in a note on Sunday.

“This is a larger increase than presented Friday although the goal remains to stabilize inventories, not generate a surplus,” the U.S. bank added.

Edward Bell, commodity analyst at Dubai’s Emirates NBD bank, said when the Vienna agreement was priced into the market, he expected prices “in a range between $65-$70 per barrel for Brent for the remainder of the year”.

Goldman Sachs also warned that an “outage at Syncrude Canada’s oil sands facility could leave North America short of 360,000 bpd of supply for all of July”.

It added that this “will exacerbate the current global deficit, making the increase in OPEC production all the more required”.

Source : Reuters

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