Lok Sabha Question No. 1352 (UNSTARRED), answered on 2020-09-19
Subject: Reduction in Import of Oil
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Sumedhanand Saraswati, Kirit Premjibhai Solanki

## LOK SABHA UNSTARRED QUESTION NO. 1352 TO BE ANSWERED ON 19 th  September 2020

## Reduction in Import of Oil

## 1352.  SHRI SUMEDHANAND SARASWATI: DR. (PROF.) KIRIT PREMJIBHAI SOLANKI:

## पेोलयम और ाक ृ तक गैस मंी

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

(a)  the  annual  requirement  of  petro  products  in  the  country  along  with  the  percentage  of this requirement imported from abroad;

(b) the current status of benefit/loss per litre to the Government;

(c) the details of steps taken by Government to reduce dependency on fossil fuels from aboard;

(d)  whether  any  new  oil  exploration  projects  have  been  started  to  reduce  dependency  from abroad, if so, the required details thereof;

(e) whether any steps have been taken to improve consumption of bio-fuels in order to reduce imports from other countries; and

(f)  the  details  of  the  work  plan  of  the  Government  for  introduction  of  other  alternatives  to petroleum oil?

## ANSWER

## पेोलयम एवं ाक ृ तक गैस मंी ( ी धम धान )

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

(a)  During  2019-20  consumption  of  petroleum  products  was  213.7  MMT  and  percentage  of import dependency of oil and oil equivalent gas was 77.9%.

(b)  Currently,  the Central  Government levies Excise duty on petrol and diesel, whereas State Governments levy VAT/Sales Tax. Excise duty is levied on specific basis (fixed amount per litre)  and  VAT/Sales  tax  (by  most  of  the  states)  is  levied  on  an  ad-valorem  basis.  Details  of Excise duty on non GST goods and the rates of products under GST are attached.

(c) to (e) Ministry of Petroleum and Natural Gas has identified a basket of strategies inter-alia including primarily increasing domestic production of oil and gas and promoting biofuels/alternate fuels with a view to achieve reduction in import of crude oil.   Government has also taken a number of initiatives to encourage the use of alternative fuels like ethanol and biodiesel through Ethanol Blending in Petrol (EBP) Programme and Bio-diesel blending in diesel. Government has formulated a National Bio Fuel Policy 2018 to boost availability of biofuels in country.  To  give  a  major  thrust  to  Ethanol  Blending  Programme,  Oil  CPSEs  are  establishing twelve 2G Ethanol plants across 11 States of the country.

(f) As per resolution dated 08.11.2019 regarding authorization to market transportation fuel, the authorized  entities,  in  addition  to  conventional  fuels, are  required  to  install  facilities  for marketing at least one new generation alternate fuels like Compressed Natural Gas (CNG), biofuels, Liquefied Natural Gas (LNG), electric vehicle charging points etc. at their proposed retail outlets  (RO)  within  three  years  of  operationalization  of  the  said  outlet  subject  to  the  entity complying with various other statutory guidelines. Also, as on 31.08.2020, PSU Oil Marketing Companies have set up Electric Charging facilities at 110 retail outlets and Battery Swapping Stations at 17 retail outlets in the country.

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Annexure referred to in Reply to part (b) of the Lok Sabha Unstarred Question No 1352 for 19.09.2020 regarding Reduction in Import of Oil.

## I. Details of Excise duty on non GST goods

NCCD : National Calamity Contingent Duty

|   S. No. | Commodity                                       | Basic Excise Duty                                        | Special Additional Excise Duty   | Road& Infrastructure Cess   | Total Central Excise Duty                                  |
|----------|-------------------------------------------------|----------------------------------------------------------|----------------------------------|-----------------------------|------------------------------------------------------------|
|        1 | Crude Petroleum Oil                             | Rs 1 per ton excise duty + Cess @20% + Rs.50/ MT as NCCD | --                               | --                          | Rs 1 per tonne excise duty + Cess @20% + Rs.50/ MT as NCCD |
|        2 | Natural Gas [other than compressed natural gas] | Nil                                                      | --                               | --                          | Nil                                                        |
|        3 | Compressed Natural Gas                          | 14%                                                      | --                               | --                          | 14%                                                        |
|        4 | Petrol (Unbranded)                              | Rs. 2.98/ltr                                             | Rs. 12.00/ltr                    | Rs. 18.00/ltr               | Rs. 32.98/ltr                                              |
|        5 | High Speed Diesel (Unbranded)                   | Rs. 4.83/ltr                                             | Rs.9.00/ltr                      | Rs. 18.00/ltr               | Rs. 31.83/ltr                                              |
|        6 | ATF                                             | 11% [2% for RCS flights]                                 | --                               | --                          | 11% [2% for RCS flights]                                   |

RCS: Regional Connectivity Scheme

## II. Rates of GST on Other petroleum products

| Commodity                                         |                 | GST    |
|---------------------------------------------------|-----------------|--------|
| LPG                                               | Domestic        | 5.00%  |
| LPG                                               | Non - Domestic  | 18.00% |
| Kerosene                                          | PDS             | 5.00%  |
| Kerosene                                          | Non PDS         | 18.00% |
| Naphtha                                           | Fertilizer      | 18.00% |
| Naphtha                                           | Non- Fertilizer | 18.00% |
| Bitumen &Asphalt, furnace oil, Lube, Pet coke etc |                 | 18.00% |