[image: Need a Real Sponsor here] APRIL 16, 2009, 7:25 A.M. ET Reliance Seeks to End Export Status of Refinery<http://online.wsj.com/article/SB123988080251024871.html#mod=rss_about_india> By GURDEEP SINGH<http://online.wsj.com/search/search_center.html?KEYWORDS=GURDEEP+SINGH&ARTICLESEARCHQUERY_PARSER=bylineAND>
NEW DELHI -- Reliance Industries Ltd. has sought to end the only-for-export status of its 660,000-barrel-a-day Jamnagar refinery to begin selling gasoline and diesel domestically, a senior company executive said Thursday. Press Trust of India Thursday reported that the export-oriented-unit or EoU status of the refinery has ended. "Obviously, we want to sell in the local market now because of the market condition overseas," the executive told Dow Jones Newswires on condition of anonymity. "We've been trying to end the EoU status." He said the start of the company's new 580,000-barrel-a-day refinery, also in Jamnagar, gives it the flexibility to meet its export commitment as well as sell gasoline and diesel in the local market from the older refinery. The EoU status makes it mandatory for Reliance to export most of its products as the tax regime for such units makes local sales prohibitive. Reliance may sell its products to state-run fuel retailers, as analysts said the company may find it difficult to restart its gasoline service stations in the country because of government control on pricing. The company had earlier asked the government to remove pricing controls to provide it a level playing field with state-run fuel retailers, which are subsidized by the government. "Reliance would not find it easy to sell its products in India, as prices for the bulk of the products - be it LPG (cooking gas), diesel, gasoline or kerosene - are regulated," said Deepak Pareek of Mumbai-based Angel Broking. State-run fuel retailers like Indian Oil Corp. buy products at international prices and sell them at government-determined prices. The government partially compensates them for revenue losses due to fuel subsidies, which are aimed at keeping prices low compared with international prices. Reliance will continue to export most of the products from the old refinery but may sell 2.5 million to 3 million tons of diesel a year to local state-run fuel retailers, said Press Trust of India. A Reliance spokesman couldn't comment immediately. Reliance's new refinery started operations Dec. 25. The two refineries make up the world's largest refining complex, with a capacity of 1.24 million barrels a day. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en -~----------~----~----~----~------~----~------~--~---
