Calculating آ‘import parityآ’ prices for naphtha and furnace oil

Vol 4, PW 15 (30 Aug 00) News in Brief
     

How does the government calculate prices for naphtha and furnace oil, which were "decontrolled" on 1st April 1998 Oil minister Ram Naik told parliament on 18th August that the government uses the following components to calculate the consumer selling price of domestically produced naphtha and furnace oil so that it matches the imported price: Monthly average of FOB price of decontrolled products Shipping costs Landing charges Insurance, ocean loss, bank charges Customs duty Naik said the final sale price to consumers is reached by adding excise duties, inland freight charges, sales tax and local levies to the ex-storage price.

Last year, 17.8% of domestic naphtha consumption came from imports. The figure for furnace oil is 8.6%, added Naik.