Lok Sabha Question No. 61 (UNSTARRED), answered on 2020-02-03
Subject: Consumption of Petroleum-Oil-Lubricants
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shivkumar Chanabasappa Udasi

## LOK SABHA UNSTARRED QUESTION NO. 61

## TO BE ANSWERED ON 03 RD  FEBRUARY, 2020

## Consumption of Petroleum-Oil-Lubricants

## 61. SHRI SHIVAKUMAR C. UDASI

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

- (a)  the  details  of  current  demand  or  estimated  consumption  of  Petroleum-Oil-Lubricants  (POL) products and relevant status of supply sources;
- (b)  the  details  of  future  requirement  of  the  country  and  whether  the  import  of  oil  is  likely  to increase,  if  so,  the  details  thereof  along  with  the  measures  taken/likely  to  be  taken  to  meet  the future challenges; and
- (c) whether the Government has reckoned the views of experts that India may overtake Japan to emerge as the world's third largest consumer of POL after the US and China over the next decade?

## ANSWER

## MINISTER OF MINISTRY OF PETROLEUM AND NATURAL GAS

## (SHRI DHARMENDRA PRADHAN)

- (a) The consumption of petroleum products for the last 3 years and estimated consumption of the current financial year 2019-20 is given below:

| Country   | Petroleum-Oil-Lubricants ( POL) Consumption in Million Metric Tonne   | Petroleum-Oil-Lubricants ( POL) Consumption in Million Metric Tonne   | Petroleum-Oil-Lubricants ( POL) Consumption in Million Metric Tonne   | Petroleum-Oil-Lubricants ( POL) Consumption in Million Metric Tonne   |
|-----------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|
| Country   | 2016-17                                                               | 2017-18                                                               | 2018-19                                                               | 2019-20 (Estimate)                                                    |
| India     | 194.6                                                                 | 206.2                                                                 | 213.2                                                                 | 216.0                                                                 |

Source: Petroleum Planning and Analysis Cell.

Demand of petroleum products are met through domestic production and imports.

- (b) As per World Energy Outlook 2019 published by International Energy Agency (IEA), future oil demand of the country will be

| Country   |   Oil demand in (mb/d) |   Oil demand in (mb/d) |   Oil demand in (mb/d) |
|-----------|------------------------|------------------------|------------------------|
| Country   |                 2025   |                 2030   |                 2035   |
| India     |                    6.4 |                    7.5 |                    8.4 |

To meet the future challenges pertaining to import of oil, Ministry of Petroleum & Natural Gas is working in collaboration with various Central Government Ministries/stakeholders to reduce the dependency on import from oil. The strategies adopted include increasing domestic production of oil  and  gas,  promoting  energy  efficiency,  conservation  measures  and  demand  substitution, capitalizing untapped potential in biofuels and other alternate fuels/ renewables and implementing measures for refinery process improvements.

Government  has  taken  several  steps  to  enhance  exploration  &  production  of  oil  and  gas  in  the country  which  include;  Policy  for  Relaxations,  Extensions  and  Clarifications  under  Production Sharing  Contract  (PSC)  regime  for  early  monetization  of  hydrocarbon  discoveries,  Discovered Small Field Policy, Hydrocarbon Exploration and Licensing Policy, Policy for early monetization of Coal Bed Methane, setting up of National Data Repository, Appraisal of Unappraised areas in Sedimentary  Basins,  Re-assessment  of  Hydrocarbon  Resources,  Policy  framework  to  streamline the working of Production Sharing Contracts in Pre-NELP and NELP Blocks, Policy to Promote and Incentivize Enhanced Recovery Methods for Oil and Gas, Policy framework for exploration and  exploitation  of  Unconventional  Hydrocarbons  under  existing  Production  Sharing  Contracts, Coal Bed Methane contracts and Nomination fields.

The Government in February, 2019 approved major reforms in exploration and licensing policy to enhance exploration activities, attract domestic and foreign investment in unexplored/unallocated areas of sedimentary basins and accelerate domestic production of oil and gas from existing fields. The policy reforms inter alia aims to  boost exploration activities with greater weightage to work programme, simplified fiscal and contractual terms, bidding of exploration blocks under Category II  and  III  sedimentary  basins  without  any  production  or  revenue  sharing  to  Government,  early monetization of discoveries by extending fiscal incentives, incentivizing  gas production including marketing  and  pricing  freedom,  induction  of  latest  technology  and  capital,  more  functional freedom  to  National  Oil  Companies  for  collaboration  and  private  sector  participation for production  enhancement  methods  in  nomination  fields,  streamlining  approval  processes  and promoting ease of doing business including electronic single window mechanism.

Government is also promoting the usage of environment friendly transportation fuel, i.e. CNG by expanding the coverage of City Gas Distribution (CGD) network in the country. 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.

(c)    As per World Energy Outlook 2019 published by International Energy Agency (IEA), in the year 2018, India (4.7 mb/d) has already become the world's third largest oil consumer after the United States of America (18.5 mb/d) and China (12.5 mb/d). Japan (3.6 mb/d) was the 4 th largest oil consumer in 2018.

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