Revised e-bus tenders from state utilities fetch attractive bids
Tata Motors has bagged a contract to Mangalore Refinery and Petrochemicals, have together spent about Rs 35,000 crore in upgrading their units for BS VI-compliant fuels, to meet the official target of supplying less polluting fuel across the count…
NEW DELHI: Electric bus suppliers have reduced prices by up to Rs 21 per km on each vehicle in a fresh tender with flexible norms. It would lead to huge savings for transport departments and consumers.
Tata MotorsNSE -0.25 % has bagged a contract to Mangalore Refinery and Petrochemicals, have together spent about Rs 35,000 crore in upgrading their units for BS VI-compliant fuels, to meet the official target of supplying less polluting fuel across the country from April 1, 2020. Private refiners too have spent heavily on this.
“We all are trying to figure out the right mechanism but the principles remain the same that there is a substantial investment done by refineries and there has to be some kind of recovery of that cost. That is the representation to the ministry,” said B Anand, chief executive of Nayara Energy (formerly Essar OilNSE -0.04 %), which operates a20 million tonnes a year refinery and sells 60% of its output in the domestic market.
Petrol and diesel prices are deregulated in the country. Pump prices include taxes, dealer commission and marketing margins on top of the prices at which fuel marketers buy from refineries.
The prices refineries get are equal to the international rates of the respective fuel plus freight, insurance and some other costs. Refineries are already using international rates for Euro VI grade, equivalent of BS-VI, to calculate domestic price for current supplies that mainly comprise BS-IV grade fuel, leaving little scope for price appreciation when BS-VI supplies start across the country.
Moreover, in the fuel business, it’s hard to play on prices, and so rates at rival pumps vary by just a few paise per litre in each market. Which is why refiners are seeking government’s support for a wider resolution.
Source: economictimes.indiatimes
