Lok Sabha Question No. 5919 (UNSTARRED), answered on 2017-04-10
Subject: Profit/Loss to Oil Companies
Ministry: PETROLEUM AND NATURAL GAS
Asked by: BHOLA SINGH, AJAY (TENI) MISRA

## LOK SABHA

## UNSTARRED QUESTION NO. 5919 TO BE ANSWERED ON 10 TH  APRIL, 2017

## PROFIT/LOSS TO OIL COMPANIES

## 5919.   DR. BHOLA SINGH: SHRI AJAY MISRA TENI:

## isVªksfy;e vkSj izkÑfrd xSl ea=h

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

- (a) whether the public sector oil companies are in financial crisis due to interference of the Government in pricing  of  petroleum  products  and  if  so,  the  details  thereof  along  with  the reaction of the Government thereto;
- (b) the total profit/loss of upstream and downstream companies including GAIL during the last three years and the current year;
- (c) the financial health of the public sector oil companies as compared to private sector oil companies during the said period;
- (d)  whether  the  Government  proposes  to  reduce  the  huge  expenditure  incurred  by  public sector oil companies in non-core activities in order to improve their viability and if so, the details thereof along the total expenditure incurred by such companies during the said period; and
- (e)  whether  such  expenditure  by  public  sector  oil  companies  is  in  consonance  with  other similarly  placed  companies  across  the  world  and  if  so,  the  details  thereof  along  with  the corrective steps taken in this regard?

## ANSWER

## isVªksfy;e vkSj izkÑfrd xSl ea=h ( Lora= izHkkj ) ¼Jh /keZsUnz iz/kku½

## MINISTER OF STATE (I/C) IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI DHARMENDRA PRADHAN)

- (a) : Pricing of petroleum products, except Subsidized Domestic LPG and PDS Kerosene, is deregulated and Public Sector Oil Marketing Companies (OMCs) take appropriate decision on  pricing  of  these  products  in  line  with  their  international  prices  and  other  market conditions.

The Government continues to modulate the effective price to consumer for Subsidized Domestic LPG and Retail Selling Price (RSP) of PDS Kerosene, resulting in under recovery on sale of these products to Public Sector OMCs.   For the financial year 2016-17, the entire burden of under recovery has been borne by the Government.

(b) & (c): The profit/loss of Public Sector and Private Sector Oil Companies during the last three years and current year is given as under:-

(Rs. Crore)

| Companies          | 2013-14   | 2014-15   | 2015-16   | 2016-17 (April- December 2016)   |
|--------------------|-----------|-----------|-----------|----------------------------------|
| Upstream PSUs      |           |           |           |                                  |
| ONGC               | 22,095    | 17,733    | 16,004    | 13,560                           |
| OIL                | 2,981     | 2,510     | 2,330     | 1,529                            |
| GAIL               | 4,375     | 3,039     | 2,299     | 3,243                            |
| Downstream PSUs    |           |           |           |                                  |
| IOCL               | 7,019     | 5,273     | 10,399    | 15,386                           |
| HPCL               | 1,734     | 2,733     | 3,863     | 4,390                            |
| BPCL               | 4,061     | 5,085     | 7,432     | 6,198                            |
| MRPL               | 601       | -1,712    | 1,148     | 1,700                            |
| CPCL               | -304      | -39       | 771       | 859                              |
| NRL                | 371       | 718       | 1,222     | 1,503                            |
| Private Companies  |           |           |           |                                  |
| RIL**              | 21,984    | 23,566    | 27,630    | 21,825                           |
| Essar Oil          | 126       | 1,522     | 2,162     | *                                |
| Cairn India Ltd.** | 12,432    | 4,480     | (9,432)   | 1,742                            |

Source:  Petroleum Planning & Analysis Cell

* Being unlisted company quarterly results not declared.

** Profit/Loss are on consolidated basis.

(d) & (e): The decision about investment/expenditure in Public Sector Oil Companies is taken by their managements as per commercial considerations..

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