Lok Sabha Question No. 282 (STARRED), answered on 2021-08-09
Subject: Domestic Production of Petrol, Diesel and other Petroleum Products
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Subrata Pathak, Shrirang Appa Barne

## LOK SABHA STARRED QUESTION NO. 282 TO BE ANSWERED ON 9 TH  AUGUST, 2021

## Domestic Production of Petrol, Diesel and other Petroleum Products

- *282.  SHRI SUBRAT PATHAK: SHRI SHRIRANG APPA BARNE:

पेोलयम और ाक ृ तक गैस मंी Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a) the details of the demand of petrol, diesel and other petroleum products during 2019-20 and 2020-21, particularly during lockdown periods;
- (b) the  details of the  import of petroleum products during the said period;
- (c) the  details  of  the  domestic  demand  of  various  petroleum  products  met  from domestic production;
- (d) the  details of works undertaken by the Indian oil companies to increase the oil production in  the country during the said period and the extent to which they have been able to achieve their schedules;
- (e) the  steps  taken  by  the  Government  to  ensure  that  Indian  oil  companies  are prepared to fully meet the demand for petrol, diesel and other petroleum products in the country in near future; and
- (f) the steps taken to protect the refineries in case of war, natural calamity and act of terrorism?

## ANSWER

## पेोिलयम और ाकृितक गैस मंी

## ( ी हरदीप सह पुरी ) MINISTER OF PETROLEUM & NATURAL GAS (SHRI HARDEEP SINGH PURI)

- (a) to (f): A statement is laid on the Table of the House.

Statement  referred  to  in  reply  to  parts  (a)  to  (f)  of  Lok  Sabha  Starred Question No. 282 asked by Shri Subrat Pathak and Shri Shrirang Appa Barne to be  answered  on  9 th August, 2021 regarding 'Domestic Production of Petrol, Diesel and other Petroleum Products'.

- (a) The details of demand of petrol, diesel and other petroleum products during 2019-20  and    2020-21  (Provisional)  which  includes  the  demand  during  lockdown period, are annexed at Annexure-I.
- (b) The details of import of petroleum products during 2019-20 and 2020-21 (P) are as under :
- (c) Around  15%  of  the  domestic  demand  of  various  petroleum  products  is  met from domestic sources.  The details for 2019-20 & 2020-21 are as under:
- (d) & (e)     The present capacity of Indian oil companies is self sufficient and they are  also  fully  prepared  to  meet  the  future  demand  of  petrol,  diesel  and  other petroleum products as the refining capacity of 249.2 MMT per annum is adequate to meet  the  present  demand  of  major  petroleum  products  to  the  tune  of  214  MMT. Besides, the Ministry of Petroleum and Natural Gas has formulated several policies and  taken  several  actions  during  the  past  few  years  to  further  increase  the production of oil. The details are annexed at Annexure-II.
- (f) All  Refineries  have  been categorised  as vital  locations  by  Intelligent  Bureau (IB),  Ministry  of  Home  Affairs  (MHA)  and  accordingly  adequate  steps  are  taken  to protect  these  vital  installations  against  circumstances  like  war,  natural  calamity  & terrorist threat.

| Year        |   Quantity (Million Metric Tonne) |
|-------------|-----------------------------------|
| 2019-20     |                              43.8 |
| 2020-21 (P) |                              43.5 |

Source : Petroleum Planning  & Analysis Cell (PPAC)

|                                                    |                                                    | 2019-20                                            | 2020-21 (P)                                        |
|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|
| 1                                                  | Domestic consumption/demand (MMT)                  | 214                                                | 195                                                |
| 2                                                  | Indigenous crude oil processing (MMT)              | 29                                                 | 28                                                 |
| 3                                                  | Products from Indigenous crude (MMT) (B x 0.93)    | 27                                                 | 26                                                 |
| 4                                                  | Products from Fractionators (MMT)                  | 5                                                  | 4                                                  |
| 5                                                  | Total Indigenous production (MMT)                  | 32                                                 | 30                                                 |
| 6                                                  | Self Sufficiency (%) (E/A)*100                     | 15.0                                               | 15.6                                               |
| Source : Petroleum Planning & Analysis Cell (PPAC) | Source : Petroleum Planning & Analysis Cell (PPAC) | Source : Petroleum Planning & Analysis Cell (PPAC) | Source : Petroleum Planning & Analysis Cell (PPAC) |

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## Annexure-I

Annexure-I referred to in reply to part (a)  of Lok Sabha Starred Question No. 282 asked by S/Shri Subrat Pathak and Shrirang Appa Barne to be answered on 9 th August, 2021 regarding 'Domestic Production of Petrol, Diesel and other Petroleum Products'.

## CONSUMPTION OF PETROLEUM PRODUCTS

(Figures in Million  Metric Tonnes)

| Period : April 2019-March 2020   | Period : April 2019-March 2020   | Period : April 2019-March 2020   | Period : April 2019-March 2020   | Period : April 2019-March 2020   | Period : April 2019-March 2020   | Period : April 2019-March 2020   | Period : April 2019-March 2020   | Period : April 2019-March 2020   | Period : April 2019-March 2020   | Period : April 2019-March 2020   | Period : April 2019-March 2020   | Period : April 2019-March 2020   | Period : April 2019-March 2020   |
|----------------------------------|----------------------------------|----------------------------------|----------------------------------|----------------------------------|----------------------------------|----------------------------------|----------------------------------|----------------------------------|----------------------------------|----------------------------------|----------------------------------|----------------------------------|----------------------------------|
| PRODUCTS                         | APR                              | MAY                              | JUN                              | JUL                              | AUG                              | SEP                              | OCT                              | NOV                              | DEC                              | JAN                              | FEB                              | MAR                              | Total                            |
| LPG                              | 1.9                              | 2.1                              | 1.8                              | 2.2                              | 2.4                              | 2.2                              | 2.3                              | 2.3                              | 2.4                              | 2.4                              | 2.1                              | 2.3                              | 26.3                             |
| Naphtha                          | 1.0                              | 0.8                              | 1.0                              | 1.5                              | 1.4                              | 1.1                              | 1.1                              | 1.2                              | 1.3                              | 1.4                              | 1.2                              | 1.3                              | 14.3                             |
| MS                               | 2.5                              | 2.7                              | 2.6                              | 2.5                              | 2.6                              | 2.4                              | 2.5                              | 2.5                              | 2.5                              | 2.5                              | 2.5                              | 2.2                              | 30.0                             |
| ATF                              | 0.6                              | 0.7                              | 0.6                              | 0.7                              | 0.7                              | 0.7                              | 0.7                              | 0.7                              | 0.7                              | 0.7                              | 0.7                              | 0.5                              | 8.0                              |
| SKO                              | 0.3                              | 0.3                              | 0.3                              | 0.2                              | 0.2                              | 0.2                              | 0.2                              | 0.2                              | 0.2                              | 0.2                              | 0.2                              | 0.2                              | 2.4                              |
| HSD                              | 7.3                              | 7.8                              | 7.5                              | 6.8                              | 6.1                              | 5.8                              | 6.5                              | 7.6                              | 7.4                              | 7.0                              | 7.2                              | 5.7                              | 82.6                             |
| Lubricants & Greases             | 0.3                              | 0.4                              | 0.3                              | 0.3                              | 0.3                              | 0.3                              | 0.3                              | 0.3                              | 0.3                              | 0.4                              | 0.3                              | 0.3                              | 3.8                              |
| FO & LSHS                        | 0.5                              | 0.5                              | 0.5                              | 0.6                              | 0.5                              | 0.5                              | 0.5                              | 0.5                              | 0.6                              | 0.6                              | 0.6                              | 0.5                              | 6.3                              |
| Bitumen                          | 0.7                              | 0.7                              | 0.5                              | 0.4                              | 0.2                              | 0.3                              | 0.4                              | 0.6                              | 0.6                              | 0.7                              | 0.8                              | 0.6                              | 6.7                              |
| Petroleum coke                   | 2.3                              | 2.3                              | 1.5                              | 1.7                              | 1.8                              | 1.8                              | 1.7                              | 1.7                              | 2.0                              | 1.9                              | 1.6                              | 1.6                              | 21.7                             |
| Others                           | 1.1                              | 1.0                              | 1.0                              | 1.1                              | 1.0                              | 1.0                              | 1.0                              | 1.0                              | 1.0                              | 1.0                              | 0.9                              | 0.9                              | 12.0                             |
| TOTAL                            | 18.3                             | 19.2                             | 17.7                             | 18.0                             | 17.1                             | 16.2                             | 17.3                             | 18.5                             | 18.9                             | 18.7                             | 18.1                             | 15.9                             | 214.1                            |

| Period : April 2020-March 2021 (P)   | Period : April 2020-March 2021 (P)   | Period : April 2020-March 2021 (P)   | Period : April 2020-March 2021 (P)   | Period : April 2020-March 2021 (P)   | Period : April 2020-March 2021 (P)   | Period : April 2020-March 2021 (P)   | Period : April 2020-March 2021 (P)   | Period : April 2020-March 2021 (P)   | Period : April 2020-March 2021 (P)   | Period : April 2020-March 2021 (P)   | Period : April 2020-March 2021 (P)   | Period : April 2020-March 2021 (P)   | Period : April 2020-March 2021 (P)   |
|--------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|
| PRODUCTS                             | APR                                  | MAY                                  | JUN                                  | JUL                                  | AUG                                  | SEP                                  | OCT                                  | NOV                                  | DEC                                  | JAN                                  | FEB                                  | MAR                                  | Total                                |
| LPG                                  | 2.1                                  | 2.3                                  | 2.1                                  | 2.3                                  | 2.3                                  | 2.3                                  | 2.4                                  | 2.4                                  | 2.5                                  | 2.5                                  | 2.3                                  | 2.3                                  | 27.6                                 |
| Naphtha                              | 0.8                                  | 1.0                                  | 1.2                                  | 1.3                                  | 1.1                                  | 1.1                                  | 1.3                                  | 1.3                                  | 1.2                                  | 1.3                                  | 1.2                                  | 1.4                                  | 14.3                                 |
| MS                                   | 1.0                                  | 1.8                                  | 2.3                                  | 2.3                                  | 2.4                                  | 2.4                                  | 2.7                                  | 2.7                                  | 2.7                                  | 2.6                                  | 2.5                                  | 2.7                                  | 28.0                                 |
| ATF                                  | 0.1                                  | 0.1                                  | 0.2                                  | 0.2                                  | 0.3                                  | 0.3                                  | 0.4                                  | 0.4                                  | 0.4                                  | 0.4                                  | 0.4                                  | 0.5                                  | 3.7                                  |
| SKO                                  | 0.1                                  | 0.2                                  | 0.2                                  | 0.2                                  | 0.1                                  | 0.2                                  | 0.1                                  | 0.2                                  | 0.1                                  | 0.1                                  | 0.1                                  | 0.2                                  | 1.8                                  |
| HSD                                  | 3.3                                  | 5.5                                  | 6.3                                  | 5.5                                  | 4.8                                  | 5.5                                  | 7.0                                  | 7.0                                  | 7.2                                  | 6.8                                  | 6.6                                  | 7.2                                  | 72.7                                 |
| Lubricants & Greases                 | 0.2                                  | 0.2                                  | 0.2                                  | 0.3                                  | 0.3                                  | 0.3                                  | 0.3                                  | 0.3                                  | 0.3                                  | 0.3                                  | 0.3                                  | 0.4                                  | 3.5                                  |
| FO & LSHS                            | 0.3                                  | 0.5                                  | 0.5                                  | 0.5                                  | 0.5                                  | 0.5                                  | 0.5                                  | 0.5                                  | 0.6                                  | 0.5                                  | 0.5                                  | 0.5                                  | 6.0                                  |
| Bitumen                              | 0.2                                  | 0.6                                  | 0.8                                  | 0.4                                  | 0.3                                  | 0.4                                  | 0.7                                  | 0.7                                  | 0.8                                  | 0.7                                  | 0.7                                  | 0.9                                  | 7.1                                  |
| Petroleum coke                       | 0.8                                  | 2.5                                  | 1.4                                  | 1.6                                  | 1.4                                  | 1.3                                  | 1.4                                  | 1.4                                  | 1.6                                  | 1.6                                  | 1.6                                  | 1.6                                  | 18.3                                 |
| Others                               | 0.6                                  | 0.8                                  | 0.9                                  | 1.0                                  | 0.9                                  | 1.0                                  | 1.0                                  | 1.0                                  | 1.1                                  | 1.1                                  | 1.0                                  | 1.1                                  | 11.7                                 |
| TOTAL                                | 9.4                                  | 15.3                                 | 16.1                                 | 15.6                                 | 14.4                                 | 15.5                                 | 17.8                                 | 17.9                                 | 18.6                                 | 18.0                                 | 17.3                                 | 18.8                                 | 194.6                                |

(P):Provisional

Annexure-II referred to in reply to part (e)  of Lok Sabha Starred Question No. 282 asked by S/Shri Subrat Pathak and Shrirang Appa Barne to be answered on 9 th August, 2021 regarding 'Domestic Production of Petrol, Diesel and other Petroleum Products'.

- 1) Policy for Relaxations, Extensions and Clarifications under Production Sharing Contract (PSC)  regime for early monetization of hydrocarbon discoveries, 2014
- 2) Discovered Small Field Policy, 2015
- 3) Hydrocarbon Exploration and Licensing Policy, 2016
- 4) Policy for Extension of Production Sharing Contracts, 2016 and 2017
- 5) Policy for early monetization of Coal Bed Methane, 2017
- 6) Setting up of National Data Repository, 2017
- 7) Appraisal of Unappraised areas in Sedimentary Basins.
- 8) Re-assessment of Hydrocarbon Resources.
- 9) Policy framework to streamline the working of Production Sharing Contracts in Pre-NELP and NELP Blocks, 2018
- 10) Policy  to  Promote  and  Incentivize  Enhanced  Recovery  Methods  for  Oil  and Gas, 2018
- 11) Policy framework for exploration and exploitation of Unconventional Hydrocarbons under existing Production Sharing Contracts, Coal Bed Methane contracts and Nomination fields, 2018.
- 12) Grant of Marketing including pricing freedom, on natural gas production from High  Pressure-  High  Temperature  (HP-HT)  reservoirs  and  deepwater  and ultra  deepwater areas (with ceiling), gas produced from CBM blocks, blocks awarded  under  Hydrocarbon  Exploration  and  Licensing  Policy  (HELP)  and Discovered Small Fields (DSF) Policy, commercial gas produced from NorthEastern Region (NER) on or after 1 st July,  2018  and  also  in  those  new  gas discoveries  whose  Field  Development  Plan  (FDP)  has  been  approved  after February  2019.  To  incentivize  additional  gas  production  from  Administered Price Mechanism (APM) fields, reduction in royalty by 10% of the applicable royalty  has  also  been  granted  on  the  additional  production  over  and  above business-as-usual scenario.
- 13) In  addition,  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.

- 14) The policy  reforms inter  alia aim  to  boost  exploration  activities  with  greater weightage  to  work  programme  and  bidding  of  exploration  blocks  under Category  II  and  III  sedimentary  basins  without  any  production  or  revenue sharing  to  Government.  Further,  reforms  envisage  simplified  fiscal  and contractual  terms,  early  monetization  of  discoveries  by extending  fiscal incentives  and  incentivizing  gas  production  including  marketing  and  pricing freedom.  The  policy  also  provides  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 is also an important aspect of policy reforms
- 15) Moving  towards  Gas  based  economy,  Natural  Gas  Marketing  Reforms  has been approved wherein standard procedure has been prescribed to discover market  price  of  gas  to  be  sold  in  the  market  by  gas  producers,  through  a transparent and competitive process, affiliates has been permitted to participate in bidding process for sale of gas and allowing marketing freedom to  certain  field  development  plans  where  Production  Sharing  Contracts already provide pricing freedom has been undertaken.

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