Lok Sabha Question No. 1472 (UNSTARRED), answered on 2022-12-15
Subject: Increase in Import Cost of Petroleum Products
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Dibyendu Adhikari

## LOK SABHA UNSTARRED QUESTION No. 1472 TO BE ANSWERED ON 15 th  December, 2022

## Increase in Import Cost of Petroleum Products

1472.  SHRI DIBYENDU ADHIKARI:

## पेोिलयम और ाकृितक गैस मंी

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

- (a) the reasons for increase in import cost of petroleum products by 39.6 per cent between 2016-17 and first half of 2022-23;
- (b) the details of the volume of natural gas imported from 2014 till date, year-wise along with the import bills for the respective years;
- (c)  whether  it  is  true  that  India's  natural  gas  import  bill  increased  by  sixty  one  per  cent between April, 2021 and September, 2022; and
- (d) if so, whether this would impact the Government's plan to reduce crude oil imports by ten per cent by March, 2023 and if so, the details thereof?

## ANSWER पेोिलयम और ाकृितक गैस मंालय म राय मंी ( ी रामेवर तेल )

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI RAMESWAR TELI)

- (a): To  ensure  uninterrupted  supply  of  petroleum  products  in  the  country,  Oil  Public Sector Undertakings (OPSUs) import petroleum products to bridge the supply demand gap in the domestic market. The import bill of petroleum products has increased by 39.6% in first half  of  2022-23  in  comparison  to  2016-17  primarily  due  to  increase  in  quantity  due  to demand growth, price increase in international market and exchange rate changes.
- (b): The details of import of natural gas (quantity as well as value) from FY 2014-15 till date, year-wise, are as under:-

| Financial Year       | LNG import quantity (MMSCM)   | Value in US$ (Million)   |
|----------------------|-------------------------------|--------------------------|
| 18607                | 9549                          | 2014-15                  |
| 21388                | 6897                          | 2015-16                  |
| 24849                | 6128                          | 2016-17                  |
| 27439                | 8051                          | 2017-18                  |
| 28740                | 10253                         | 2018-19                  |
| 33887                | 9489                          | 2019-20                  |
| 33031                | 7864                          | 2020-21                  |
| 26785                | 13382                         | 2021-22(P)               |
| 2022-23 (Apr-Oct)(P) |                               | 16876 6615               |

Source: Petroleum Planning & Analysis Cell;

MMSCM: Million Metric Standard Cubic Meters; P: Provisional

(c): The details of import of natural gas in April, 2021 and September, 2022 are as under:-

| Particulars         |   April, 2021 |   September, 2022 | % change from April, 2021 to September, 2022   |
|---------------------|---------------|-------------------|------------------------------------------------|
| Value (Million US$) |           769 |              1354 | +43%                                           |
| Quantity (MMSCM)    |          2847 |              1878 | -34%                                           |

Source: Petroleum Planning & Analysis Cell; MMSCM: Million Metric Standard Cubic Meters

(d): Ministry of Petroleum and Natural Gas works in collaboration with various Central Government  Ministries/State  Governments/stakeholders  to  achieve  reduction  in  import dependency on oil. Since 2014, Government has taken multiple steps to reduce country's oil import  dependency  through  refinery  process  improvements  and  various  policies  under Production  Sharing  Contract  (PSC)  regime,  Discovered  Small  Field  Policy,  Hydrocarbon Exploration and Licensing Policy, Setting up of National Data Repository, etc. Government has  also  provided  functional  freedom  to  National  Oil  Companies  and  wider  private  sector participation by streamlining approval processes including electronic single  window mechanism.

Government has launched National Biofuel Policy, 2018, to boost availability of biofuels in country  and  use  of  alternative  fuels  like  ethanol,  bio-diesel  and  bio-CNG  through  Ethanol Blending, Bio-diesel blending and Sustainable Alternative Towards Affordable Transportation (SATAT) initiative respectively.

A Committee was constituted  by the  Government for  'Preparing  a roadmap  to  reduce  the dependency on import in energy by 10% by 2021-22'. The report submitted by Committee was accepted by the Government which envisages five-pronged strategy broadly comprising of increasing domestic  production of oil and gas, promoting  energy  efficiency and conservation measures, giving thrust on demand substitution, capitalizing untapped potential in  biofuels  and  other  alternate  fuels/  renewable  and  implementing  measures  for  refinery process improvements.

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