Lok Sabha Question No. 180 (UNSTARRED), answered on 2020-09-14
Subject: Impact of Coronavirus on Crude Oil Prices
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Ganesan Selvam, Dhanush M Kumar, C.N. Annadurai, Gautham Sigamani Pon

## LOK SABHA

## UNSTARRED QUESTION NO.180 TO BE ANSWERED ON 14 TH  SEPTEMBER, 2020

Impact of Coronavirus on Crude Oil Prices

180. SHRI SELVAM G. SHRI DHANUSH M. KUMAR: SHRI C.N. ANNADURAI: SHRI GAUTHAM SIGAMANI PON:

पेोलयम और ाक ृतक गैस मंी

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

- (a)  whether  the  global  outbreak  of  Coronavirus  has  led  to  prices  of  crude  oil  plunging  in  the world market, if so, the details thereof and the likely fallout on India's import of crude oil;
- (b) whether India has purchased huge tonne of crude oil when the prices of crude oil plunged in the world market and if so, the quantum of foreign exchange saved;
- (c) whether the Government will consider reducing the prices of petrol and diesel as a result of prices coming down in international market, if so, the details thereof and the reasons therefor;
- (d) wheher constant increase in prices of petroleum products in the country has cascading effects on the overall prices on essential commodities; and
- (e) if so, the details thereof and the corrective steps taken by the Government in this regard?

## ANSWER

पेोलयम और ाक ृतक गैस मंी ( ी धम धान )

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

- (a) The monthly average price of Indian Basket of Crude oil since January 2020 till date is given below:

| Period        |   Indian Basket of Crude Oil ($/bbl) |
|---------------|--------------------------------------|
| January-2020  |                                64.31 |
| February-2020 |                                54.63 |
| March-2020    |                                33.36 |
| April-2020    |                                19.9  |
| May-2020      |                                30.6  |
| June-2020     |                                40.63 |

| Period                                    |   Indian Basket of Crude Oil ($/bbl) |
|-------------------------------------------|--------------------------------------|
| July-2020                                 |                                43.35 |
| August-2020                               |                                44.19 |
| September-2020 (till 9 th September 2020) |                                42.42 |

The  month  wise  details  of  crude  oil  import  during  January-July  2020  as  compared  to January-July 2019 is given as Annexure .

- (b) The event of COVID 19 resulted in lockdown with increasing supply of crude oil in international market.  Taking advantage of the low crude oil prices, India purchased 16.71  Million  bbls  of  crude  in  April  -  May,  2020  and  filled all  the  three  Strategic Petroleum  Reserves  created  at  Vishakhapatnam,  Mangalore  and  Padur.   The  average cost  of  procurement  was  US  $  19  per  bbl  as  compared  to  US  $  60  per  bbl  prevailing during  January,  2020,   thus  saving  US  $  685.11  Million  which  amounts  to  Rs.  5069 crores at an exchange rate of Rs. 74/- per US $.
- (c)    Prices of petrol and diesel have been made market-determined by the Government with effect from 26.06.2010 and 19.10.2014 respectively. Since then, the Public Sector Oil  Marketing  Companies  (OMCs)  take  appropriate  decision  on  pricing  of  petrol  and diesel  in  line  with  international  product  prices  and  other  market  conditions.    Oil Marketing  Companies  take  a  decision  on  retail  selling  price  after  considering  various aspects including international product prices, exchange rate, tax structure, inland freight and other cost elements.
- (d) & (e) Petrol  and  Diesel  prices  are  market-determined  and  increase  or  decrease according to market trend.  The prices of transport fuels  from a part of  the Wholesale Price Index.  The weightage of petrol and diesel in the WPI index is 1.60% and 3.10% respectively.

Annexure referred to in reply to part (a) of Lok Sabha Unstarred Question No. 180 asked by Shri Selvam G., Shri Dhanush M. Kumar, Shri C.N. Annadurai and Shri Gautham Sigamani Pon to be answered on 14 th September, 2020 regarding 'Impact of Coronavirus on Crude Oil Prices'.

The month wise details of crude oil import during January-July 2020 as compared to JanuaryJuly 2019

## Crude oil import during January - July 2019

| January 2019                | QTY.   | Million tonne   |     19.7 |
|-----------------------------|--------|-----------------|----------|
| January 2019                | VALUE  | US$ (Billion)   |      8.3 |
| January 2019                | VALUE  | Rs. (Crores)    |  58811   |
| February 2019               | QTY.   | Million tonne   |     17.1 |
| February 2019               | VALUE  | US$ (Billion)   |      7.7 |
| February 2019               | VALUE  | Rs. (Crores)    |  54282   |
| March 2019                  | QTY.   | Million tonne   |     19.2 |
| March 2019                  | VALUE  | US$ (Billion)   |      8.9 |
| March 2019                  | VALUE  | Rs. (Crores)    |  62578   |
|                             | QTY.   | Million tonne   |     19.7 |
|                             | VALUE  | US$ (Billion)   |      9.7 |
|                             | VALUE  | Rs. (Crores)    |  67512   |
|                             | QTY.   | Million tonne   |     18.9 |
|                             | VALUE  | US$ (Billion)   |      9.5 |
|                             | VALUE  | Rs. (Crores)    |  66382   |
|                             | QTY.   | Million tonne   |     16.9 |
|                             | VALUE  | US$ (Billion)   |      8   |
|                             | VALUE  | Rs. (Crores)    |  55095   |
|                             | QTY.   | Million tonne   |     19.4 |
|                             | VALUE  | US$ (Billion)   |      9   |
|                             | VALUE  | Rs. (Crores)    |  62690   |
| Total (January - July 2019) | QTY.   | Million tonne   |    130.8 |
| Total (January - July 2019) | VALUE  | US$ (Billion)   |     61.3 |
| Total (January - July 2019) | VALUE  | Rs. (Crores)    | 427350   |

| QTY.   | Million tonne   |     20.1 |
|--------|-----------------|----------|
| VALUE  | US$ (Billion)   |      9.5 |
| VALUE  | Rs. (Crores)    |  67850   |
| QTY.   | Million tonne   |     18.6 |
| VALUE  | US$ (Billion)   |      7.7 |
| VALUE  | Rs. (Crores)    |  55357   |
| QTY.   | Million tonne   |     19.5 |
| VALUE  | US$ (Billion)   |      5.8 |
| VALUE  | Rs. (Crores)    |  43077   |
| QTY.   | Million tonne   |     16.6 |
| VALUE  | US$ (Billion)   |      3.1 |
| VALUE  | Rs. (Crores)    |  23301   |
| QTY.   | Million tonne   |     14.6 |
| VALUE  | US$ (Billion)   |      2.3 |
| VALUE  | Rs. (Crores)    |  17200   |
| QTY.   | Million tonne   |     13.7 |
| VALUE  | US$ (Billion)   |      3.2 |
| VALUE  | Rs. (Crores)    |  24448   |
| QTY.   | Million tonne   |     12.3 |
| VALUE  | US$ (Billion)   |      3.8 |
| VALUE  | Rs. (Crores)    |  28517   |
| QTY.   | Million tonne   |    115.5 |
| VALUE  | US$ (Billion)   |     35.4 |
| VALUE  | Rs. (Crores)    | 259751   |

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Crude oil import during January - July 2020