Lok Sabha Question No. 4958 (UNSTARRED), answered on 2018-03-26
Subject: Import of Crude Oil
Ministry: PETROLEUM AND NATURAL GAS
Asked by: N.K. PREMACHANDRAN

## GOVERNMENT OF INDIA LOK SABHA UNSTARRED QUESTION NO. 4958 TO BE ANSWERED ON 26 th  MARCH, 2018

## IMPORT OF CRUDE OIL

## 4958: SHRI N.K. PREMACHANDRAN:

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

(a) whether the Government proposes to increase the oil mining and introduce alternates of crude oil to reduce its import and if so, the details thereof;

(b)  whether  the  Government  regulates  the  price  of  petroleum  products  produced  from  the imported  crude  oil  and  crude  oil  produced  domestically  in  different  tariffs  and  if  so,  the details thereof and the reasons therefor; and

(c) whether the petroleum products produced from the domestic crude oil are exported to other countries and if so, the details thereof?

## ANSWER

## MINISTER OF MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI DHARMENDRA PRADHAN)

(a)  Government has taken several steps to enhance exploration & production of oil and gas and  promote  clean  alternative  fuels  in  order  to  reduce  imports  of  crude  oil.  In  order  to increase domestic production, a number of policy initiatives have been taken which include inter-alia  Hydrocarbon  Exploration  Licensing Policy  (HELP)  and Open Acreage  Licensing Policy (OALP), Discovered Small Fields (DSF) Policy, gas pricing reforms with premium for difficult  areas,  grant  of  marketing  freedom  for  gas  produced  from  difficult  areas,  National Seismic Programme for unappraised areas, National Data Repository, easing out rigidities in the existing Production Sharing Contracts (PSCs) and transparent and clear policy for grant of  extension  under  the  PSC  regime.  Government  has  also  taken  a  number  of  initiatives  to encourage  the  use  of  alternative  fuels  such  as  Ethanol  and  Bio  Diesel  and  promote  the conservation of petroleum products. Some of the important achievements/initiatives in these areas  include inter-alia  award of  30 hydrocarbon bearing contract areas  under DSF Policy, launch of  bids  under  OALP  for  55  oil  &  gas  blocks,  approval  of  40%  capital  grant  under Pradhan Mantri Urja Ganga to promote gas based economy, improvement in the supply of ethanol, direct sale of bio-diesel to all consumers for blending with High Speed Diesel and setting up of 2 G ethanol plants.

(b)  The prices of petrol and diesel have been de-regulated with effect from 26 th June, 2010 and 19 th October, 2014 respectively, barring prices of PDS kerosene and subsidized domestic LPG. Public Sector Oil Marketing Companies decide on the prices of finished products in line  with  the  changes  in  the  international  markets.  Prices  of  PDS  kerosene  and  subsidized domestic LPG prices continue to be modulated by the Government, in order to insulate the common  man  from  the  impact  of  rise  in  international  crude  prices  and  the  domestic inflationary conditions and the consumers continue to get these products at subsidized rates. The prices in the domestic market are uniform for these petroleum products, produced either from imported or domestic crude oil.

(c)  Oil  marketing  companies  -  private  and  public  -  export  petroleum  products  to  various countries. 65.51 Million Metric Tonnes (MMT) and 56.26 MMT of petroleum products were exported during 2016-17 and April'17 to January'18 respectively.

********