Lok Sabha Question No. 3115 (UNSTARRED), answered on 2021-12-16
Subject: Import Cost of Petroleum Products
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Su Thirunavukkarasar

## LOK SABHA UNSTARRED QUESTION No. 3115 TO BE ANSWERED ON 16 th  December, 2021

## Import Cost of Petroleum Products

3115.  SHRI THIRUNAVUKKARASAR SU:

## पेोिलयम और ाकृितक गैस मंी

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

- (a) whether import cost of petroleum products have been continuously increasing during the last few years;
- (b) if so, the details thereof along with the average monthly hike during the last six months, month-wise;
- (c) whether the Government has any proposal to release crude oil from its strategic reserves;
- (d) if so, the details thereof; and
- (e) the extent to which this proposal would help in arresting the increasing crude price hike?

## ANSWER पेोलयम और ाक ृ तक गैस मंालय म राज् य मंी

## ( ी रामेश ् वर तेल )

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

(a) & (b): To ensure uninterrupted supply of petroleum products in the country, Oil Public Sector Undertakings (PSUs) import petroleum products to bridge the supply demand gap in the domestic market.   The import cost of petroleum products during the last five years is as under:-

| Year                                      | 2016-17                                   | 2017-18                                   | 2018-19                                   | 2019-20                                   | 2020-21                                   |
|-------------------------------------------|-------------------------------------------|-------------------------------------------|-------------------------------------------|-------------------------------------------|-------------------------------------------|
| Value in US$ Billion                      | 10.6                                      | 13.6                                      | 16.3                                      | 17.7                                      | 14.8                                      |
| Value in ₹ Crores                         | 71566                                     | 88374                                     | 113665                                    | 125742                                    | 109430                                    |
| Source: Petroleum Planning &Analysis Cell | Source: Petroleum Planning &Analysis Cell | Source: Petroleum Planning &Analysis Cell | Source: Petroleum Planning &Analysis Cell | Source: Petroleum Planning &Analysis Cell | Source: Petroleum Planning &Analysis Cell |

Further, the month-wise import cost of petroleum products during the last six months is as under:-

| Month                                     | May                                       | June                                      | July                                      | August                                    | September                                 | October                                   |
|-------------------------------------------|-------------------------------------------|-------------------------------------------|-------------------------------------------|-------------------------------------------|-------------------------------------------|-------------------------------------------|
| Value in US$ Billion                      | 1.4                                       | 1.5                                       | 1.9                                       | 1.9                                       | 1.8                                       | 2.5                                       |
| Value in ₹ Crores                         | 10032                                     | 11366                                     | 14573                                     | 14220                                     | 13425                                     | 18936                                     |
| Source: Petroleum Planning &Analysis Cell | Source: Petroleum Planning &Analysis Cell | Source: Petroleum Planning &Analysis Cell | Source: Petroleum Planning &Analysis Cell | Source: Petroleum Planning &Analysis Cell | Source: Petroleum Planning &Analysis Cell | Source: Petroleum Planning &Analysis Cell |

(c) to (e): Government of India has agreed to release 5 million barrels of crude oil from its Strategic Petroleum Reserves, in consultation and in parallel with other major global energy consumers. This step is  being  taken  in  a  bid  to  control  inflationary  pressures  and  provide relief to consumers.

The domestic price of crude is linked to international benchmarks (prices) of crude prices. These benchmarks get affected by many factors including supply and demand, impact of the covid scenario and geopolitical situation. Linear co-relation between pricing and any one of these factors in isolation is indeterminable.

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