Indian Oil Corporation Ltd. (IOC), the country’s second-largest producer of petroleum coke, has received poor responses in its online auctions of RPC (Raw Petroleum Coke) for intrastate consumers in Assam and Gujarat.
The auctions were conducted on 21st Mar’20 and the detailed results are enumerated as follows:
| Refinery | Reserve Price
(INR/MT) |
Quantity Offered Within State
(MT) |
Quantity Sold Within State
(MT) |
Quantity Offered Outside State
(MT) |
Date of Auction |
| Digboi Refinery | 13,720 | 5,000 | 0 | 5,000 | 24th Mar’20 |
| Koyali Refinery (Gr.A) | 12,780 | 25,000 | 0 | 25,000 | 24th Mar’20 |
| TOTAL | 30,000 | 0 | 30,000 |
There has been nil response in these auctions and no quantity was sold out from either of the refineries. The market participants have indicated that this is mainly due to sharp increase in reserve prices at both the refineries.
The reserve price was increased at Digboi by INR 2,370/MT from INR 11,350/MT of the last auction conducted on 27th Dec’19, wherein entire offered quantity of 6,900 MT was sold out at reserve price.
The increase in reserve price at Koyali was by INR 1,400/MT from INR 11,380/MT of the last auction conducted on 10th Feb’20.
Notably, in this last auction ex-Koyali, a total of 35,000 MT was put on auction, out of which 4,900MT was sold within state and 6,000 MT was sold out outside state. Thus, a total quantity of 10,900MT was sold out in the auction.
The leftover quantities are being auctioned as scheduled above. The delivery period for outside state e-auction will be for 45 days after the completion of the auction, i.e. from 25th Mar’20 till 8th May’20. Eligible bidders are required to submit earnest money deposit (EMD) amount to MSTC as per terms of the auction.
At this juncture, the response from consumers located outside the states in these auctions remains to be seen, particularly in view of the increased reserve prices, as mentioned above.
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