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Mar 06, 2013
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Oil subsidy: Export parity pricing to kick off from FY14
The finance ministry has calculated the oil subsidy for 2013-14 on the basis of estimating under-recoveries through “100% export parity pricing” of petroleum products. According to sources, in comparison to the existing “trade-parity pricing,” the export-parity model will help the government save R10,000-R12,000 crore for the full year on diesel subsidy .Export parity pricing mechanism is being implemented from 2013-14 as part of the larger exercise to make petroleum pricing more transparent and reduce the “under recovery” claims of oil companies,” said a government official privy to the development. The finance ministry has estimated oil subsidy for next fiscal at R65,000 crore against the R96,880 crore (revised estimate) for the current fiscal. In addition to the deregulation of diesel prices,
Source -
http://www.financialexpress.com
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