Lok Sabha Question No. 2313 (UNSTARRED), answered on 2017-07-31
Subject: Demand of Petroleum Products
Ministry: PETROLEUM AND NATURAL GAS
Asked by: RAMSINH PATALYABHAI RATHWA, T.G. VENKATESH BABU, GOWDAR MALLIKARJUNAPPA SIDDESHWARA, SISIR KUMAR ADHIKARI

## LOK SABHA UNSTARRED  QUESTION NO. 2313

TO BE ANSWERED ON 31 st  July, 2017

## Demand of Petroleum Products

2313.   SHRI RAMSINH RATHWA: SHRI VENKATESH BABU T.G.: SHRI G.M. SIDDESHWARA: SHRI SISIR KUMAR ADHIKARI:

## पेट्रोलियम और प्राक ृ लिक गैस मंत्री

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

(a)  whether the demand of petroleum products is expected to rise while the scope for increasing domestic production is limited and  if so, the details thereof;

(b)  whether price of imported petroleum products it lower than the domestic petroleum products and if so, the details of price difference between the imported and domestic products during the last three years;

(c) whether the Government has any proposal to unveil Enhanced Oil Recovery Scheme and if so, the details thereof along with the  salient features of the same;

(d) whether domestic production is also supplemented by oil and  gas assets acquired abroad and has helped to reduce import of crude oil and if so, the details thereof;

(e) whether the Government  proposes to reduce oil import from Iran and if so, the details thereof; and

(f) whether Iran proposes to reduce the payment window to  60 days and if so, the reason behind such  contention  and  the  reply  from  ONGC  Videsh  Limited  in  this  regard  along  with  the  action taken/being  taken  by  the  Government  with  their  Iranian  counterpart  to  conclude  the  attrition thereof?

## ANSWER

पेट्रोलियम और प्राक ृ लिक गैस मंत्रािय में राज्य मंत्री ( स्विंत्र प्रभार )

( श्री धमेंद्र प्रधान )

## MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI DHARMENDRA PRADHAN)

(a):    As per the Report of the Committee on roadmap to reduce import dependency in energy by 10% by 2021-22, the projected demand for petroleum products for the year 2021-22 is 226 Million Metric  Tonnes  (MMT).  Oil  PSUs,  namely,  Indian  Oil  Corporation  Ltd.,  Bharat  Petroleum Corporation Ltd. and Hindustan Petroleum Corporation Ltd. have decided to set up an integrated refinery-cum-petrochemical complex with a refining capacity of 60 MMTPA at Babulwadi, Taluka Rajapur  in  Ratnagiri  District.  In  addition,  Oil  PSUs  have  also  planned  to  increase  the  refining capacity in the country by 35 MMTPA (approx.) in next few years to meet the domestic demand of petroleum products.

- (b) :  Prices of petroleum products, except Subsidized Domestic LPG and PDS Kerosene, have been made  market  determined.  Accordingly,  Public  Sector  Oil  Marketing  Companies  (OMCs)  take appropriate decision on pricing of petroleum products in line with international product prices and other market conditions. The Government continues to modulate the Retail Selling Price of PDS Kerosene and effective cost to consumer for Subsidized Domestic LPG.
- (c):    Enhanced Oil Recovery (EOR) is the implementation of various techniques for increasing the amount  of  crude  oil  that  can  be  extracted  from  matured  oil  fields.  Directorate  General  of Hydrocarbons (DGH) has organized a workshop for conducting preliminary discussion/interactions with major stakeholders for their application in Indian oil fields.
- (d):        The  acquisition  of  oil  &  gas  assets  overseas  has  led  to  boosting  India's  energy  security. Indian oil & gas PSUs own over 25 MMT of oil equivalent.

(e) & (f):    Oil PSUs have been authorised to formulate policies for import of crude oil in their best commercial and operational interest.  Accordingly,  Oil  PSUs  import  crude  oil  as  per  commercial and operational considerations. In their strategy for import of crude oil in 2017-18, Oil PSUs have reduced import of Iranian crude oil in comparison to 2016-17. Free credit period for imports from Iran for the current financial year is 60 days.  OVL, being an upstream company, does not deal in imports of crude oil.

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