Reliance Industries, which recently converted its existing 33-million tonne refinery
in Jamnagar, Gujarat, into an export house, has sought international price for
LPG (cooking gas) it sells to public sector oil companies.
almost the entire 2.3-million tonnes of LPG it produces at Jamnagar to public
sector refiners at lower than import prices. PSU refiners - Indian Oil, Bharat
Petroleum and Hindustan Petroleum are short on cooking fuel production.
In a letter to petroleuim secretary M S Srinivasan, the company sought
import parity for gas it supplies to PSU refiners.
"We would request
you to allow us to supply LPG to the PSU system under international competitive
bidding procedure as required under the export-import policy," the company
PSU refiners are not allowed to price LPG, kerosene, petrol and
diesel in line with rise in cost and international bidding for gas would imply
that these refiners would have to pay Reliance a price close to the cost of importing
"We have just converted our existing refinery at Jamnagar
into an EOU (Export Oriented Unit)," Reliance wrote, while also seeking grant
of deemed export status for such supplies.
An EOU status entitles Jamnagar
refinery exemption from 5 per cent
import duty on crude oil. RIL''s subsidiary Reliance Petroleum is building another
export-oriented 29 million tonne a year refinery adjacent to this unit by end-2008.