Lok Sabha Question No. 2254 (UNSTARRED), answered on 2018-12-24
Subject: Dependency on Petroleum Products
Ministry: PETROLEUM AND NATURAL GAS
Asked by: FEROZE VARUN GANDHI

## GOVERNMENT OF INDIA LOK SABHA UNSTARRED QUESTION NO. 2254 TO BE ANSWERED ON 24 th  DECEMBER, 2018

## DEPENDENCY ON PETROLEUM PRODUCTS

## 2254: SHRI FEROZE VARUN GANDHI:

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

(a) the details of the steps being taken by the Government to reduce dependency on petroleum products in the near future;

(b) the increases in the price of LPG during the last 6 months, State-wise and the reasons therefor;

(c) the details of commission being paid to distributors of LPG along with the increase in their commissions during the last 6 months, State-wise and the reasons therefor; and

(d) the details and the status of the second phase of the Indian Strategic Petroleum Reserves?

## ANSWER

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

(a) Government has taken several steps to enhance exploration & production of oil and gas in the country,  which  include,  inter-alia,  Hydrocarbon  Exploration  Licensing  Policy  (HELP)  and  Open Acreage Licensing Policy (OALP), Discovered Small Fields (DSF) Policy, gas pricing reforms with premium  for  difficult  areas,  grant  of  marketing  freedom  for  gas  produced  from  difficult  areas, National Seismic Programme for unappraised areas, National Data Repository, easing out rigidities in the existing Production Sharing Contracts (PSCs) and transparent and clear policy for grant of extension under the PSC regime. 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 Bio-Diesel. Government has notified the National Bio Fuel Policy 2018 to boost availability of biofuels in country.

(b) The  Government  continues  to  modulate  the  effective  price  to  consumer  for  Subsidized Domestic LPG. The prices of non-subsidized Domestic LPG are however determined by the OMCs in line with changes in international markets. The details of change in the price of non subsidized LPG,  cash  subsidy  and  effective  cost  to  consumer  in  Delhi  during  the  last  6  months  are  given below:

(Rs./14.2 Kg Cylinder)

| Date       | Price of Non- Sub Domestic LPG at Delhi   | Cash Subsidy   | Effective cost to Consumer   |
|------------|-------------------------------------------|----------------|------------------------------|
| (A)        | (B)                                       | (C)            | (D) =(B)-(C)                 |
| 01-06.2018 | 698.50                                    | 204.95         | 493.55                       |
| 01.07.2018 | 754.00                                    | 257.74         | 496.26                       |
| 01.08.2018 | 789.50                                    | 291.48         | 498.02                       |
| 01.09.2018 | 820.00                                    | 320.49         | 499.51                       |
| 01.10.2018 | 879.00                                    | 376.60         | 502.40                       |
| 01.11.2018 | 939.00                                    | 433.66         | 505.34                       |
| 01.12.2018 | 809.50                                    | 308.60         | 500.90                       |

- (c) The details of commission being paid to distributors of LPG along with the increases in their commissions during the last 6 months in the country are given below:

| Distributor Commission on Domestic LPG   | Distributor Commission on Domestic LPG   | Distributor Commission on Domestic LPG   |
|------------------------------------------|------------------------------------------|------------------------------------------|
| Effective date                           | (Rs./14.2 Kg Cylinder)                   | Rs./5 Kg. Cylinder                       |
| 1-Jun-18                                 | 48.89                                    | 24.20                                    |
| 1-Jul-18                                 | 48.89                                    | 24.20                                    |
| 1-Aug-18                                 | 48.89                                    | 24.20                                    |
| 1-Sep-18                                 | 48.89                                    | 24.20                                    |
| 1-Oct-18                                 | 48.89                                    | 24.20                                    |
| 1-Nov-18                                 | 48.89                                    | 24.20                                    |
| 7-Nov-18                                 | 50.58                                    | 25.29                                    |
| 1-Dec-18                                 | 50.58                                    | 25.29                                    |

(d) Under Phase-II, Government has given 'in principle' approval in June, 2018 for creation of two additional Strategic Petroleum Reserves facilities with total storage capacity of 6.5 Million Metric Tonnes  (MMT)  at  two  locations  namely  (i)  Chandikhol  in  Odisha  (4  MMT)  and  (ii)  Padur  in Karnataka (2.5 MMT).

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