Lok Sabha Question No. 943 (UNSTARRED), answered on 2018-12-17
Subject: New Petroleum Policy
Ministry: PETROLEUM AND NATURAL GAS
Asked by: SANKAR PRASAD DATTA, RANJANBEN BHATT, K. MARAGATHAM

## GOVERNMENT OF INDIA MINISTRY OF PETROLEUM AND NATURAL GAS LOK SABHA

## UNSTARRED QUESTION No. 943 TO BE ANSWERED ON 17 th  December, 2018

New Petroleum Policy

943.     SHRI SANKAR PRASAD DATTA: SHRIMATI RANJANBEN BHATT: SHRIMATI K. MARAGATHAM:

Will the Minister of PETROLEUM AND NATURAL GAS

पेट्रोलियम और प्राक ृ लिक गैस मंत्री

be pleased to state:

- (a)  Whether  the  Government  proposes  to  hold  consultation  with  industry/investors before formulating any new policy regarding development of oil/gas and other petroleum products  and  if  so,  the  details  thereof  along  with  the  salient  features  of  the  new oil/petroleum policy;
- (b) Whether the Government proposes to deregulate the price of natural gas and if so, the details thereof;
- (c) Whether the country's per day barrel consumption is 4.5 MT and refining capacity is 5 million barrels per day and if so, the details thereof; and
- (d) Whether the demand of petroleum products including petrol/diesel has increased at a compounded annual growth rate of 5.5 percent from 2013 to 2017 despite increase in  the  electric  vehicles  and  the  country  is  adding  380000  barrels per day in  global oil demand and if so, the details thereof along with steps taken by the Government to meet the demand?

## ANSWER

पेट्रोलियम और प्राक ृ लिक गैस मंत्री (श्री धमेन्द्र प्रधान)

## MINISTER OF PETROLEUM & NATURAL GAS (SHRI DHARMENDRA PRADHAN)

- (a): There is no proposal at present to formulate a new policy regarding development of Oil/Gas and other petroleum products.
- (b): The Government of India has formulated the following policies / guidelines which provide pricing and marketing freedom for sale of Natural Gas:
- 1 Discovered Small Fields policy notified on 31.10.2015.
2. Policy  on  Pricing  Mechanism  for  Deep  Water,  Ultra  Deep  Water  and  High Pressure - High Temperature (HP-HT) areas notified on 21.03.2016.
3. Hydrocarbon Exploration and Licensing policy notified on 30.03.2016.
4. Policy for Early Monetization of Coal Bed Methane notified on 11.04.2017.
5. Discovered Small Fields policy Bid Round-II notified on 05.04.2018.
6. Policy  on  Gas  Pricing  in  North  Eastern  Region  (NER)  notified  on  14.08.2018 whereby contractors have been allowed marketing and pricing freedom of Natural Gas produced  from  discoveries  allocated  in  NER  which  were  to  commence  commercial production as on 01.07.2018 in NER.
- (c): The consumption of petroleum products and refining capacity during the last three years and current year is as follows:

| POL consumption      | POL consumption   |
|----------------------|-------------------|
| Year                 | MMT               |
| 2015-16              | 184.7             |
| 2016-17              | 194.6             |
| 2017-18              | 206.2             |
| 2018-19 (Apr-Oct)(P) | 122.1             |

| Refining Capacity   | Refining Capacity   |
|---------------------|---------------------|
| As on               | MMT per annum       |
| 1.4.2016            | 230.1               |
| 1.4.2017            | 234                 |
| 1.4.2018            | 247.6               |
| 1.11.2018           | 249.4               |

## MMT - Million Metric Tonnes, POL - Petroleum, Oil and Lubricants

(d): The demand of all petroleum products in the country increased at a compounded annual  growth  rate  (CAGR)  of  5.6%  during  the  period  2012-2013  to  2017-2018.  The consumption of petroleum products increased by 9.9 MMT during 2016  -17 and 11.6 MMT during 2017-18 as compared to the previous year.

The country is self-sufficient in meeting the overall demand of petroleum products and is also a net exporter of POL products. However, there is deficit in production of LPG and lubricants for which demand is met through imports.

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