labels: finance - general, economy - general
Petro products: Finance ministry for trade parity pricingnews
04 October 2006

The union finance ministry is in favour of trade parity pricing for petroleum production, and opposes a proposal to fix the prices of petroleum products on export parity. The trade parity pricing was mooted by the C Rangarajan panel, set up to suggest a pricing formula for petro products.

Trade parity is an average of the export and import parity model, in a 20:80 ratio. Export parity means setting the minimum price of a product, while import parity includes customs duty and other levies. The ministry opined that the export parity pricing model would benefit only 'one private sector refiner' whose basic market was export-oriented.

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Petro products: Finance ministry for trade parity pricing