Marketing Margin for Supply Gas to Fertilizer Units Allowed

  • Approved by the Union Cabinet chaired by the Prime Minister Mr Narendra Modi.
  • Approval for determination of Marketing Margin on supply of domestic gas to Fertilizer (Urea) Units for the period from May 1, 2009 to November 17, 2015.

Highlights:

  • This is a structural reform.
  • Marketing Margin is charged by gas marketing companies from consumers over and above the cost of gas for taking on the additional risk and cost associated with marketing of gas.
  • Government had previously determined a marketing margin on the supply of domestic gas to urea and LPG producers in 2015.
  • This will provide additional capital to the various Fertilizer (Urea) Units for the component of marketing margins paid by them on domestic gas procured during the period 01.05.2009 to 17.11.2015, based on rates already being paid from 18.11.2015 onwards.
Posted in Current Affairs.