PSU refiners to lose monopoly over domestic crude from October 1

NEW DELHI: Domestic producers will be free to sell crude from their fields to government and private refineries from October 1, ending the historical monopoly of state-run refiners over domestic crude.
The decision taken by the Cabinet’s panel on economic affairs, first reported by TOI, is expected to encourage upstream investments by expanding the market for domestic crude, lead to improved utilisation, boost realisation from each barrel and shore up government revenue.
Producers at present can sell crude only to state-run refiners and the Centre allots the quantity for each refiner. The price is calculated according to a traditional formula with Brent as a marker, instead of the global practice of a ‘five-cut’ – or yield of five most-used refined products – norm.