Lok Sabha Question No. 804 (UNSTARRED), answered on 2016-11-21
Subject: Subsidy to Petroleum Companies
Ministry: PETROLEUM AND NATURAL GAS
Asked by: HEMANT TUKARAM GODSE, SHARAD TRIPATHI, NEELAM SONKER, LALLU SINGH, RABINDRA KUMAR JENA, SIRAJUDDIN AJMAL, S.P. MUDDAHANUMEGOWDA

## LOK SABHA UNSTARRED QUESTION NO. 804 TO BE ANSWERED ON 21 ST  NOVEMBER, 2016

## SUBSIDY TO PETROLEUM COMPANIES

## 804. SHRI GODSE HEMANT TUKARAM:

SHRI SHARAD TRIPATHI:

SHRIMATI  NEELAM  SONKER:

SHRI LALLU SINGH:

SHRI RABINDRA KUMAR JENA:

SHRI SIRAJUDDIN AJMAL:

SHRI S.P. MUDDAHANUME GOWDA:

## isVªksfy;e vkSj izkÑfrd xSl ea=h

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

- (a)  whether  the  Government  plans  to  revisit  the  subsidy  formula  of  petroleum  products including crude oil for upstream/ downstream companies and petroleum products producing States in view of the recent fall in international crude oil prices and if so, the details thereof;
- (b)  the  details  of  under-recoveries/  subsidy  provided  by  the  Government  on  petrol,  diesel, LPG  and  kerosene  to  downstream  companies  and  part  of  burden  borne  by  upstream companies during the last three years and the current year along with the profit/loss incurred by various OMC in view of low crude oil prices/ subsidy given to them, OMC/product-wise; (c) the State-wise basic price/refining cost of said petroleum products of various OMCs and price of petrol after levying different Central/State taxes on it;
- (d) the details of increase/decrease in the prices of petrol, diesel, LPG, CNG, PNG, Kerosene including  reasons  for  not  reducing  the  oil  prices  in  proportion  to  the  reduction  of  price  of crude oil in the international market during the said period; and
- (e)  whether  the  Government proposes to control the petroleum production/prices to keep a check on export-import of petroleum products and if so, the details thereof

## 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): For the financial year 2016-17, it has been decided that entire burden on sale of PDS Kerosene and Subsidized Domestic LPG will be borne by the Government.
- (b): The  total  subsidy/under  recovery  on  petroleum  products  since  2013-14  is  given below:

(Rs. crore)

| Particulars   |   2013-14 |   2014-15 |   2015-16 |   H1 2016-17 |
|---------------|-----------|-----------|-----------|--------------|
| Diesel        |     62837 |     10935 |         0 |            0 |
| PDS Kerosene  |     31255 |     24804 |     11496 |         4123 |
| Domestic LPG  |     52247 |     40569 |     16074 |         4557 |
| Total         |    146339 |     76308 |     27570 |         8680 |

The  burden  sharing  of  the  under-recoveries  by  the  upstream  companies  since  2013-14  is given below:

(Rs.crore)

| Particulars                                  |   2013-14 |   2014-15 |   2015-16 |   H1, 2016-17 |
|----------------------------------------------|-----------|-----------|-----------|---------------|
| Total Under-recoveries                       |    139869 |     72314 |     11515 |          4123 |
| Under-recoveries borne by Upstream Companies |     67021 |     42822 |      1251 |             0 |

The  details  of  Net  Profit  After  Tax  (PAT)  reported  by  the  PSU  OMCs  since  2013-14  are given below:

(Rs. crore)

| Companies   | 2013-14   | 2014-15   | 2015-16   | Q1, 16-17   |
|-------------|-----------|-----------|-----------|-------------|
| IOC         | 7,019     | 5,273     | 10,399    | 8,269       |
| HPC         | 1,734     | 2,733     | 3,863     | 2,098       |
| BPC         | 4,061     | 5,085     | 7,432     | 2,621       |

- (c): Refining of crude oil is a process industry, where crude oil constitutes around 90% of the total cost. Crude oil is processed through several processing units.  Each of these units produces intermediate products streams, which require extensive reprocessing and blending. This  results  in  difficulty  in  apportioning  the  total  cost  of  individual  refined  products  with reasonable accuracy.  Therefore, individual product-wise costs are not identified separately. The State wise Retail Selling Price of petrol effective 16 th November 2016, as per IOCL, is at Annexure-I.
- (d) & (e): The  details  of  revision  in  the  Retail  Selling  Prices  (RSP)  of  Petrol,  Diesel, PDS  Kerosene,  Domestic  LPG  and  CNG  at  Delhi  since  1 st April,  2013  are  given  in Annexure II.

The  prices of  Petrol  and  Diesel  have  been  made  market  determined  by  the Government effective 26 th June, 2010 and 19 th October, 2014 respectively.   Since then, the 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.  Further, price of CNG/PNG is fixed by the concerned City Gas Distribution (CGD) entities as per market dynamics.

x-x-x-x-x

Annexure referred to in reply to part (c) of the Lok Sabha Unstarred Question No. 804 asked by Shri  Godse  Hemant Tukaram, Shri Sharad Tripathi,  Shrimati  Neelam  Sonker, Shri Lallu Singh, Shri Rabindra Kumar Jena, Shri Sirajuddin Ajmal and Shri S.P. Muddahanume Gowda to be answered on 21 st November, 2016 regarding 'Subsidy to Petroleum Companies'.

## Retail Selling Price of petrol effective 16 th November 2016.

| State Capital      |   RSP(Rs./Ltr) |
|--------------------|----------------|
| NEW DELHI          |          65.93 |
| CHANDIGARH         |          66.39 |
| SRINAGAR           |          70.85 |
| SHIMLA             |          66.95 |
| JAMMU              |          68.09 |
| JALANDHAR          |          71.1  |
| AMBALA             |          65.44 |
| JAIPUR             |          68.36 |
| LUCKNOW            |          68.96 |
| DEHRADUN           |          70.59 |
| MUMBAI             |          72.29 |
| GANDHINAGAR        |          67.85 |
| PANJIM             |          60.03 |
| BHOPAL             |          73.03 |
| RAIPUR             |          66.86 |
| CHENNAI            |          65.41 |
| PUDUCHERRY         |          62.12 |
| THIRUVANANTHAPURAM |          70.03 |
| BENGALURU          |          70.69 |
| HYDERABAD          |          70.37 |
| KOLKATA            |          68.67 |
| GANGTOK            |          68.13 |
| PORT BLAIR         |          57.18 |
| PATNA              |          68.49 |
| RANCHI             |          67.84 |
| BHUBANESWAR        |          66.03 |
| GUWAHATI           |          68.47 |
| AIZWAL             |          61.54 |
| ITANAGAR           |          61.97 |
| SHILLONG           |          64.8  |
| IMPHAL             |          64.01 |
| KOHIMA             |          64.08 |
| AGARTALA           |          61.27 |
| FARIDABAD          |          66.1  |
| GURGAON            |          65.86 |
| NOIDA              |          68.84 |

## Annexure-II

Annexure referred to in reply to part (d) of the Lok Sabha Unstarred Question No. 804 asked by Shri Godse Hemant Tukaram, Shri Sharad Tripathi,  Shrimati  Neelam  Sonker, Shri Lallu Singh, Shri Rabindra Kumar Jena, Shri Sirajuddin Ajmal and Shri S.P. Muddahanume Gowda to be answered on 21 st November, 2016 regarding 'Subsidy to Petroleum Companies'.

## Revision in RSP of Major Petroleum products at Delhi since 1.4.2013

| Date       | Petrol      | Diesel      | PDS         | Domestic LPG      | Domestic LPG      |
|------------|-------------|-------------|-------------|-------------------|-------------------|
|            |             |             | SKO         | Subsidized        | Non- Subsidized   |
|            | (Rs./litre) | (Rs./litre) | (Rs./litre) | (Rs./14.2 KGCyl.) | (Rs./14.2 KGCyl.) |
| 01.04.2013 | 68.31       | 48.63       | 14.96       | 410.50            | 901.50            |
| 02.04.2013 | 67.29       |             |             |                   |                   |
| 16.04.2013 | 66.09       | 48.67       |             |                   |                   |
| 01.05.2013 | 63.09       |             |             |                   | 847.00            |
| 11.05.2013 |             | 49.69       |             |                   |                   |
| 01.06.2013 | 63.99       | 50.25       |             |                   | 802.00            |
| 16.06.2013 | 66.39       |             |             |                   |                   |
| 29.06.2013 | 68.58       |             |             |                   |                   |
| 01.07.2013 |             | 50.26       |             |                   | 832.00            |
| 02.07.2013 |             | 50.84       |             |                   |                   |
| 15.07.2013 | 70.44       |             |             |                   |                   |
| 01.08.2013 | 71.28       | 51.40       |             |                   | 875.00            |
| 01.09.2013 | 74.10       | 51.97       |             |                   | 932.50            |
| 14.09.2013 | 76.06       |             |             |                   |                   |
| 01.10.2013 | 72.40       | 52.54       |             |                   | 1004.00           |
| 01.11.2013 | 71.02       | 53.10       |             |                   | 954.50            |
| 01.12.2013 |             | 53.67       |             |                   | 1017.50           |
| 11.12.2013 |             |             |             | 414.00            | 1021.00           |
| 21.12.2013 | 71.52       | 53.78       |             |                   |                   |
| 04.01.2014 | 72.43       | 54.34       |             |                   | 1241.00           |
| 01.02.2014 |             | 54.91       |             |                   | 1134.00           |
| 01.03.2014 | 73.16       | 55.48       |             |                   | 1080.50           |
| 01.04.2014 | 72.26       | 55.49       |             |                   | 980.50            |
| 16.04.2014 | 71.41       |             |             |                   |                   |
| 01.05.2014 |             |             |             |                   | 928.50            |
| 16.05.2014 |             | 56.71       |             |                   |                   |

| D at e     | Petrol                        | Diesel                        | PDS                           | Domestic LPG                  | Domestic LPG                  |
|------------|-------------------------------|-------------------------------|-------------------------------|-------------------------------|-------------------------------|
|            |                               |                               | SKO                           | Subsidized                    | Non- Subsidized               |
|            | (Rs./litre) (Rs./14.2 KGCyl.) | (Rs./litre) (Rs./14.2 KGCyl.) | (Rs./litre) (Rs./14.2 KGCyl.) | (Rs./litre) (Rs./14.2 KGCyl.) | (Rs./litre) (Rs./14.2 KGCyl.) |
| 01.06.2014 |                               | 57.28                         |                               |                               | 905.00                        |
| 07.06.2014 | 71.51                         |                               |                               |                               |                               |
| 25.06.2014 | 71.56                         |                               |                               |                               | 906.00                        |
| 01.07.2014 | 73.60                         | 57.84                         |                               |                               | 922.50                        |
| 01.08.2014 | 72.51                         | 58.40                         |                               |                               | 920.00                        |
| 16.08.2014 | 70.33                         |                               |                               |                               |                               |
| 31.08.2014 | 68.51                         | 58.97                         |                               |                               |                               |
| 01.09.2014 |                               |                               |                               |                               | 901.00                        |
| 01.10.2014 | 67.86                         |                               |                               |                               | 880.00                        |
| 15.10.2014 | 66.65                         |                               |                               |                               |                               |
| 19.10.2014 |                               | 55.60                         |                               |                               |                               |
| 23.10.2014 |                               |                               |                               | 417.00                        | 883.50                        |
| 01.11.2014 | 64.24                         | 53.35                         | 15.14*                        |                               | 865.00                        |
| 01.12.2014 | 63.33                         | 52.51                         |                               |                               | 752.00                        |
| 16.12.2014 | 61.33                         | 50.51                         |                               |                               |                               |
| 01.01.2015 |                               |                               |                               |                               | 708.50                        |
| 17.01.2015 | 58.91                         | 48.26                         |                               |                               |                               |
| 01.02.2015 |                               |                               |                               |                               | 605.00                        |
| 04.02.2015 | 56.49                         | 46.01                         |                               |                               |                               |
| 16.02.2015 | 57.31                         | 46.62                         | 15.24                         |                               |                               |
| 01.03.2015 | 60.49                         | 49.71                         |                               |                               | 610.00                        |

|            |        |        |         | Domestic LPG      | Domestic LPG                       |
|------------|--------|--------|---------|-------------------|------------------------------------|
| D at e     | Petrol | Diesel | PDS SKO | RSP               | Effective cost after DBTL Subsidy# |
|            |        |        |         | (Rs./14.2 KGCyl.) | (Rs./14.2 KGCyl.)                  |
| 01.04.2015 | 60.00  | 48.50  |         | 621.00            | 417.82                             |
| 16.04.2015 | 59.20  | 47.20  |         |                   |                                    |
| 1.05.2015  | 63.16  | 49.57  | 15.24   | 616.00            |                                    |
| 16.05.2015 | 66.29  | 52.28  |         |                   |                                    |
| 01.06.2015 |        |        |         | 626.50            |                                    |
| 16.06.2015 | 66.93  | 50.93  |         |                   |                                    |
| 01.07.2015 | 66.62  | 50.22  |         | 608.50            |                                    |
| 16.07.2015 | 66.90  | 49.72  |         |                   |                                    |
| 01.08.2015 | 64.47  | 46.12  |         | 585.00            |                                    |
| 15.08.2015 | 63.20  | 44.95  |         |                   |                                    |
| 01.09.2015 | 61.20  | 44.45  |         | 559.50            |                                    |
| 01.10.2015 |        | 44.95  |         | 517.50            |                                    |
| 16.10.2015 |        | 45.90  |         |                   |                                    |
| 01.11.2015 | 60.70  | 45.93  |         | 545.00            |                                    |
| 16.11.2015 | 61.06  | 46.80  |         |                   |                                    |
| 01.12.2015 | 60.48  | 46.55  |         | 606.50            |                                    |
| 09.12.2015 |        |        |         | 608.00            | 419.26                             |
| 16.12.2015 | 59.98  | 46.09  |         |                   |                                    |
| 01.01.2016 | 59.35  | 45.03  |         | 657.50            | 419.33                             |
| 02.01.2016 | 59.35  | 45.03  |         |                   |                                    |
| 16.01.2016 | 59.03  | 44.18  |         |                   |                                    |
| 19.01.2016 | 59.99  | 44.71  |         |                   |                                    |

Note  -  1.Prices  of  Petrol  since  26.6.2010,  Non  Subsidized  Domestic  LPG  since  13.9.2012  and  Diesel  since 19.10.2014 are as per IOCL.

|            |                               |                               |                               | Domestic LPG                  | Domestic LPG                       |
|------------|-------------------------------|-------------------------------|-------------------------------|-------------------------------|------------------------------------|
| D at e     | Petrol                        | Diesel                        | PDS SKO                       | RSP                           | Effective cost after DBTL Subsidy# |
|            | (Rs./litre) (Rs./14.2 KGCyl.) | (Rs./litre) (Rs./14.2 KGCyl.) | (Rs./litre) (Rs./14.2 KGCyl.) | (Rs./litre) (Rs./14.2 KGCyl.) | (Rs./litre) (Rs./14.2 KGCyl.)      |
| 31.01.2016 | 59.99                         | 44.71                         |                               |                               |                                    |
| 01.02.2016 | 59.95                         | 44.68                         |                               | 575.00                        | 419.22                             |
| 18.02.2016 | 59.63                         | 44.96                         |                               |                               |                                    |
| 01.03.2016 | 56.61                         | 46.43                         |                               | 513.50                        | 419.13                             |
| 04.03.2016 |                               |                               | 15.42                         |                               |                                    |
| 17.03.2016 | 59.68                         | 48.33                         |                               |                               |                                    |
| 01.04.2016 |                               |                               |                               | 509.50                        |                                    |
| 05.04.2016 | 61.87                         | 49.31                         |                               |                               |                                    |
| 16.04.2016 | 61.13                         | 48.01                         |                               |                               |                                    |
| 25.04.2016 |                               |                               | 15.36                         |                               |                                    |
| 01.05.2016 | 62.19                         | 50.95                         |                               | 527.50                        | 419.15                             |
| 17.05.2016 | 63.02                         | 51.67                         |                               |                               |                                    |
| 01.06.2016 | 65.60                         | 53.93                         |                               | 548.50                        | 419.18#                            |
| 03.06.2016 |                               |                               | 15.02                         |                               |                                    |
| 16.06.2016 | 65.65                         | 55.19                         |                               |                               |                                    |
| 01.07.2016 | 64.76                         | 54.70                         |                               | 537.50                        | 421.16                             |
| 07.07.2016 |                               |                               | 15.27                         |                               |                                    |
| 16.07.2016 | 62.51                         | 54.28                         |                               |                               |                                    |
| 01.08.2016 | 61.09                         | 52.27                         | 15.53                         | 487.00                        | 423.09                             |
| 16.08.2016 | 60.09                         | 50.27                         | 15.68                         |                               |                                    |
| 01.09.2016 | 63.47                         | 52.94                         | 15.94                         | 466.50                        | 425.06                             |
| 16.09.2016 | 64.21                         | 52.59                         | 16.19                         |                               |                                    |
| 21.09.2016 |                               |                               | 16.40                         |                               |                                    |
| 01.10.2016 | 64.58                         | 52.51                         | 16.66                         | 490.00                        | 427.09                             |
| 05.10.2016 | 64.72                         | 52.61                         |                               |                               |                                    |
| 16.10.2016 | 66.45                         | 55.38                         | 16.92                         |                               |                                    |
| 28.10.2016 |                               |                               |                               | 492.00                        | 428.59                             |
| 01.11.2016 |                               |                               | 17.17                         | 529.50                        | 430.64                             |
| 06.11.2016 | 67.62                         | 56.41                         |                               |                               |                                    |
| 16.11.2016 | 65.93                         | 54.71                         | 17.43                         |                               |                                    |
|            | 65.93                         | 54.71                         | 17.43*                        | 529.50                        | 430.64#                            |

*Since there is 'Nil' allocation of PDS Kerosene in Delhi currently, RSP of PDS Kerosene 1.11.2014 onwards is at Mumbai.

# effective 1 st January 2015, Modified DBTL scheme has been implemented in entire country. The effective cost to consumer is after DBTL Subsidy.