Vedanta reduced crude oil supplies to Indian Oil Corp for about three months until October even as the two negotiated oil rates for the year, and restored it to the officially-allocated level only after the government intervened, according to multiple people familiar with the matter.
The government allocates all locally-produced crude to refineries based on their location, processing capability and transport logistics. All state-run and private oil producers and refiners must stick to these allocated quantities for the year.
But producers and refiners are free to decide oil price formula between them, which is usually for 12 months and agreed to at the beginning of the financial year Read More
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