Private refiners Reliance Industries and Essar Oil have become the biggest beneficiaries of Cairn India’s Rajasthan crude oil.
Till the third quarter of the current fiscal, Cairn has sold around seven million barrels to RIL for its domestic refinery at Jamnagar, about 6.9 million barrels to Essar for its Vadinar refinery, and around 3 million barrels to IndianOil Corp at an average price of $95.6 a barrel.
Rajasthan crude is sold at a 12.5 per cent discount to Brent, while the price at which Indian refiners have been sourcing crude oil has averaged at $105.56 a barrel for April 2013 till date. The Brent for the period has averaged at $107.63 a barrel.
At the time of deciding the Rajasthan crude oil price, the domestic refiners were comparing it with Maya (Mexican crude variety) or Ratawi (neutral zone), which were being sold at a substantial discount then because of the crude quality.
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