Lok Sabha Question No. 4106 (UNSTARRED), answered on 2024-12-19
Subject: Strategic Crude Oil Reserve Facilities
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri T R Baalu

## LOK SABHA UNSTARRED QUESTION NO. 4106 TO BE ANSWERED ON 19 th  DECEMBER, 2024

## STRATEGIC CRUDE OIL RESERVE FACILITIES

## 4106.: SHRI T R BAALU

## पेᮝोिलयम और ᮧाकृ ितक गैस मंᮢी

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

- (a) the details of the operational strategic crude oil reserve facilities in the country;
- (b) whether the Government has helped to safeguard the oil industry from unexpected shocks of crude oil price increase and decrease in supplies;
- (c) if so, the details thereof along with the manner in which the prices of Motor Spirit (MS), High Speed Diesel (HSD), Super Kerosene Oil (SKO), Aviation Turbine Fuel ( ATF) and Liquified Petroleum Gas (LPG) are being managed during the crisis period;
- (d) whether the Government has a plan to create more such crude oil reserve facilities, if so, the details thereof; and
- (e) if not, the reasons therefor?

## ANSWER पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũालय मŐ राǛ मंũी ( ŵी सुरे श गोपी )

MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI SURESH GOPI)

- (a)  Government,  through  a  Special  Purpose  Vehicle,  called  Indian  Strategic  Petroleum Reserves  Limited  (ISPRL),  has  established  Strategic  Petroleum  Reserves  (SPR)  facilities with total capacity of 5.33 Million Metric Tonnes (MMT) of crude oil at 3 locations namely (i) Vishakhapatnam (1.33 MMT), (ii) Mangaluru (1.5 MMT) and (iii) Padur (2.5 MMT).
- (b)  Government  has  been  closely  monitoring  global  energy  markets'  situation  in  the backdrop  of  evolving  geopolitical  events  and    is  ready  to  take  all  appropriate  action,  as deemed fit, for mitigating market volatility.

Government  has  taken  several  steps  to  insulate  common  citizens  from  high  international prices,  which  includes  diversifying  the  crude  import  basket,  invoking  the  provisions  of Universal Service Obligation to ensure availability of petrol & diesel in domestic market, increasing the blending of ethanol in petrol, etc.

(c)  Prices  of  petrol  and  diesel  are  market  determined  and  Public  Sector  Oil  Marketing Companies (OMCs) take appropriate decision on pricing of petrol and diesel. India imports more than 85% of its crude oil requirements. Crude oil prices (Indian basket) increased from $55/bbl (March 2015) to $113/bbl (March 2022) and further to $116/bbl (June 2022) and have continued to remain highly volatile. As a result of various steps taken by Government and PSU OMCs, including reduction of Central Excise duty by the Central Government and reduction  of  state  VAT  rates  by  some  State  Governments,  relief  has  been  provided  to citizens, in times of need.

India  imports  about  60%  of  the  domestic  LPG consumed. Price of LPG in the country is linked  to  its  price  in  the  international  market.  Government  continues  to  modulate  the effective price to consumer for domestic LPG.

Currently,  Government  is  providing  a  targeted  subsidy  of  Rs  300/cylinder  to  PMUY consumers.  This  is  available  to  more  than  10.33  crore  Ujjwala  beneficiaries,  across  the country. Apart from the direct subsidy to consumers, the  OMCs  have  also been compensated Rs 22,000 crore in FY 2022-23 by Government of India to cover the underrecoveries  suffered  by  them  in  not  passing  on  the  high  international  LPG  prices  to  the domestic LPG consumers.

Effective 1 March, 2020, the retail selling price of PDS Kerosene is being maintained at nil under-recovery level on pan India basis.

(d)  and  (e):  In  July  2021,  Government  approved  the  establishment  of  two  additional commercial-cum-strategic  petroleum  reserve  facilities  with  total  storage  capacity  of  6.5 MMT at Chandikhol (4 MMT) in Odisha and Padur (2.5 MMT) in Karnataka, on a Public Private Partnership mode.

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