Reliance Petroleum may be allowed to sell products at homeAugust 19th, 2008 - 10:27 pm ICT by IANS
New Delhi, Aug 19 (IANS) The petroleum ministry will suggest changes in taxation norms to allow Reliance Petroleum, a 100 percent export oriented company, to sell its products in the domestic market, a senior official of an oil major said Tuesday.The Mukesh Ambani-headed Reliance Petroleum will also be allowed to introduce different pricing for power and industrial consumers, said Indian Oil Corp chairman Sarthak Behuria.
The decision is being taken following a surge in diesel demand of late.
“An approach is being made to ministries of commerce and finance so that the double taxation liability (on Reliance Petroleum) is completely waived, so that it becomes a win-win situation,” he added.
Behuria was referring to the fact that since Reliance Industries’ Jamnagar refinery is an export-oriented unit, catering to the domestic market meant it had to pay customs and excise duties, as well as income tax on profits.
Behuria said there had been unprecedented growth in diesel demand, mainly powered by power and industrial consumers.
While transport and agriculture demand for diesel has grown 10-12 percent in recent times, consumption by power plants and other sectors such as road construction had risen 30 percent.
“We are looking to see if we can charge a differential price to meet the industrial power sector. That note is going to be put up to the government,” he said, adding that Indian Oil’s “commitment to meet (the demands of) transport and agriculture is complete”.