Lok Sabha Question No. 163 (STARRED), answered on 2018-07-30
Subject: Import of Crude Oil
Ministry: PETROLEUM AND NATURAL GAS
Asked by: ANURAG SINGH THAKUR

## LOK SABHA STARRED QUESTION NO.163 TO BE ANSWERED ON 30 TH  JULY, 2018

## Import of Crude Oil

## *163. SHRI ANURAG SINGH THAKUR:

## पेट्रोलियम और प्राक ृ लिक गैस मंत्री

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

- (a) the steps taken to ease country's crude oil import costs; (b)  the  alternate  fuels  the  Government  plans  to  use  for  the  fulfilment    of  its  objective  of reducing the import cost of crude oil; (c) the manner in which the said measure will help the farmers in the country; and (d)  the  manner  and  the  extent  to  which  it  is  likely  to  help  in  reducing  the  costs  of  LPG
- cylinders to make it affordable to everyone in the country?

## ANSWER

## पेट्रोलियम और प्राक ृ लिक गैस मंत्री ( श्री धमेंद्र प्रधान )

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

- (a) to (d) A statement is laid on the Table of the House.

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## STATEMENT REFERRED TO IN THE REPLY TO PARTS (a) TO (d) OF THE LOK SABHA STARRED QUESTION NO.163 BY SHRI ANURAG SINGH THAKUR TO BE ANSWERED ON 30.07.2018 REGARDING 'IMPORT OF CRUDE OIL '

- (a) The steps taken by the Government to ease country's crude oil import cost include:-
- (i) Increasing domestic production of oil and gas;
- (ii) Promoting energy efficiency and conservation measures;
- (iii) Giving thrust on demand substitution;
- (iv) Capitalizing untapped potential in bio-fuels and other alternate fuels/renewable and;
- (v) Implementing measures for refinery process improvements.
- (b) The Government is focussing on Biofuels such as First Generation Ethanol, Second Generation  Ethanol,  Biodiesel,  Bio-CNG  etc.  for  the  fulfilment  of  its  objective  of  import reduction, environmental benefits and increased income to farmers.
- (c)       With  the  objective  of  settling  sugarcane  farmers  dues  and  achieving  higher  ethanol blend percentage, the Government has recently fixed the ex-mill price of ethanol derived out of   C-heavy  molasses  and  B-heavy  molasses  as ₹ 43.70  per  litre  and ₹ 47.49  per  litre respectively during ethanol supply period from 1 st December, 2018 to 30 th November, 2019. These prices are exclusive of GST and Transportation charges. Government has also opened the second generation route for ethanol production which allows procurement of ethanol from cellulosic and lignocellulosic materials like agricultural biomass, crop residues, bamboo etc. This will help in providing additional remuneration to the farmers.  Also, the Government has notified the National Policy on Biofuels 2018 on 8.6.2018 which allows damaged food grains for production of ethanol for blending with petrol.  There is also a provision to allow surplus food  grains  for  ethanol  production  during  the  surplus  phase  as  decided  by  the  National Biofuel Coordination Committee.
- (d) The Government continues to modulate the effective price of Domestic LPG supplies to domestic consumers under Direct Benefit Transfer of LPG (DBTL).  The domestic price of LPG in the country is based on international price of LPG (i.e. Saudi Contract Price) and is not linked to the cost of crude oil.

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