Now, fertiliser dept questions RIL’s marketing margins | business | Hindustan Times
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Now, fertiliser dept questions RIL’s marketing margins

After the Central Vigilance Commission (CVC), it is now the fertiliser ministry asking the petroleum ministry to issue a clarification on the issue of levying of marketing margins by Reliance Industries Ltd (RIL). Anupama Airy reports.

business Updated: Sep 18, 2011 22:07 IST
Anupama Airy

After the Central Vigilance Commission (CVC), it is now the fertiliser ministry asking the petroleum ministry to issue a clarification on the issue of levying of marketing margins by Reliance Industries Ltd (RIL).

The department of fertilisers has asked the petroleum ministry to urgently take up the issue of levying of marketing margins by RIL on sales of its KG-D6 gas to fertiliser companies with the Empowered Group of Ministers (EGoM).

In a recent letter to petroleum secretary GC Chaturvedi, fertiliser secretary Sutanu Behuria said the levy was leading to huge under-recoveries for fertiliser companies and in the absence of a clarity the fertiliser ministry has held up the reimbursement of these losses by the fertiliser companies.

“The issue is pending for the last one year and has not so far been taken up for discussions,” Behuria said in his September 8 letter to the petroleum secretary.

The CVC, in a recent letter on September 1, had also sought a similar clarification from the petroleum ministry over the levy.

On the petroleum ministry’s statement that the government is not responsible for fixing the marketing margins, the CVC had even asked the ministry to furnish details of the policy of NELP in support of this contention (see HT of September 14.)

While RIL’s spokesperson refused comments, a source close to the company said, “RIL is not the only company levying this charge. Marketing margins are also being charged by state-owned GAIL and the levy by RIL is much less than what is being charged by GAIL.”

The gas from KG-D6 supplied by RIL contains charges as marketing margin at the rate of $0.135 per unit apart from government approved rate of $4.205 per unit.

“We have requested the petroleum ministry that the entire issue of applicability of marketing margin and reasonability of its quantum on Reliance gas may be examined by the ministry,” the fertiliser secretary said.