State refiners will supply products from RIL at a rate cheaper than the import cost, sources said. We will be buying about a million tonnes of oil products in four-five months begining May… Annual deal is yet to be finalised, the source.
Our future imports may not be there, he said, adding that RIL would export products at a discount to the Indian pricing formula, which is 80% import cost and 20% export price of the product. Another HPCL official said his firm has already bought some gasoline and diesel from RIL for May 2009. He did not specify the volumes. We will try to get as much as possible to make up for the shortfall but we are still negotiating volumes and price for the annual contract.
Traders say HPCL may not award the gas oil tender seeking 80,000 tones for mid-May 2009 but the second HPCL source said his firm may buy something. Pending a final agreement with RIL, HPCL on May 5, 2009, also issued a tender seeking a prompt cargo of 40,000 tones of gas oil for delivery between May 20-24, 2009.
The tender will close on May 8, 2009. HPCL and Bharat Petroleum Corporation Limited (BPCL) scrapped their auto fuel import tenders, expecting an early deal with RIL. We hope to sign the deal with Reliance next month. Nothing has been finalised… we have not bought anything as of now, said BPCL chairman Ashok Sinha.
A higher official at BPCL had earlier said his firm was anticipated to import 400,000-500,000 tone of diesel this fiscal because of shutdowns at its two refineries. An official at Indian Oil Corp said his firm has reached an understanding with RIL to buy products but a final agreement had yet to be signed.
