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What are oil bonds?

oil bonds

About oil bonds

What are oil bonds?

Oil bonds are issued by the government to compensate OMCs to offset losses that they suffer to shield consumers from rising crude prices.
 
These bonds do not qualify as statutory liquidity ratio securities, making them less liquid when compared to other government securities.
 

Oil bonds in news

Finance Minister Nirmala Sitharaman on August 16, 2021 said that the government is paying off dues to oil marketing companies (OMCs) for oil bonds that the Manmohan Singh-led UPA government had issued.
 
As of March 31, 2021, there was Rs 1.31 trillion in outstanding principal and Rs 37,340 crore in interest yet to be repaid on
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Latest Updates on oil bonds

Strong dollar vs foreign inflows: Rupee in fine balance ahead of Fed meet

Analysts expect rupee to trade in the range of 78-80 per dollar, for now

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Updated On : 19 Sep 2022 | 11:10 PM IST

Decoded: What is windfall tax on oil companies and where does India stand?

If a windfall tax is imposed in India, it will not only be aimed at private companies like Reliance, but also at state-owned behemoths

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Updated On : 01 Jun 2022 | 6:03 AM IST

Cash flood, not green dreams, leads to slump in oil bond sales

The slump in fossil-fuel issuance isn't necessarily a sign bankers have woken up to the seriousness of climate change

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Updated On : 07 Apr 2022 | 12:50 AM IST

IOC raises Rs 1,500 cr via bonds at interest rate lower than sovereign

IOC priced its five-year rupee bonds at a coupon rate of 6.14 per cent tighter than a similar maturing government bond that is trading at an annualised yield of 6.29 per cent

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Updated On : 19 Feb 2022 | 12:33 AM IST

Oil slips from record seven-year high ahead of indirect US-Iran talks

Ahead of the resumption of indirect talks between the United States and Iran on Tuesday, oil prices eased

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Updated On : 09 Feb 2022 | 12:42 AM IST

Govt makes largest-ever payment for slashing oil bond dues

Total interest outgo to top Rs 1.6 trn, against bonds of Rs 1.44 trn since FY10

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Updated On : 05 Dec 2021 | 10:32 PM IST

BS Number Wise: The name's bond, oil bond!

Do you think the government will bite the bullet and cut excise duties?

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Updated On : 24 Aug 2021 | 10:28 PM IST

No room to cut excise duty on petrol and diesel, says FM Sitharaman

On inflation, FM said she expected the retail price inflation rate to remain in the range mandated by the Monetary Policy Committee

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Updated On : 17 Aug 2021 | 2:16 AM IST

RBI to conduct first OMO for state bonds worth Rs 10,000 cr on Oct 22

Size may be enhanced in the subsequent auctions depending on market response

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Updated On : 16 Oct 2020 | 2:40 PM IST

Oil bonds seep into liquidity operations

The Reserve Bank of India (RBI) late on Friday said oil bonds can also be considered as security for liquidity operations

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Updated On : 26 Nov 2016 | 12:27 AM IST