Why should be the oil companies be negative in ethanol doping?
Most of the oil companies are integrated refining and marketing companies. The refining division/companies sell petro-products to marketing division / companies at import parity prices. The final selling price of petroleum products which the consumer has to pay is fixed on the basis of import party price, excise duties, sales tax, octroi, marketing margins, dealers commission etc. By putting 5% ethanol into petrol an equivalent quantity of petrol is displaced. Since the refining divisions/companies will not be able to sell this quantity to the marketing divisions/companies for consumption within the country refineries will have no option but to export the said quantity. Given below is the total quantity of exports of MS/Naptha by oil companies in the years 2000-01, 2001-02 & 2002-03.
