Lok Sabha Question No. 2353 (UNSTARRED), answered on 2023-08-03
Subject: Gasoline Demand
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Dibyendu Adhikari

## LOK SABHA UNSTARRED QUESTION NO. 2353 TO BE ANSWERED ON 3 rd  August 2023

## Gasoline Demand

## 2353. SHRI DIBYENDU ADHIKARI:

## पेोिलयम और ाक ृ ितक गैस मं ी

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

(a) whether the Government is aware that India's gasoline demand rebounded to above precovid-19 levels in 2021 and is expected to be some 17.6 per cent higher than 2019's level in 2023;

(b)  if  so,  the  proposal  of the  Government to raise the refining capacity and present market trends thereof; and

(c) the details of crude production and import forecast for the next five years?

## ANSWER

## पेोिलयम और ाक ृ ितक गैस मं ालय म राय मं ी ( ी रामेर तेली )

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

(a) : Consumption of Gasoline/petrol during the 1 st Quarter of current year (April-June, 2023) has been provisionally assessed at 9.377 MMT (Million Metric Tons) which is 19.7% higher than the same period of FY 2019-20.

(b) :  The  present  refining  capacity  of  Indian  refineries  is  253.9  Million  Metric  Tons  Per Annum,  (MMTPA).  As  per  the  Centre  for  High  Technology  (CHT),  a  technical  wing  of Ministry of Petroleum and Natural Gas, the refining capacity of Indian refineries is projected to increase by about 56 MMTPA by the year 2028.

(c) : As per Directorate General of Hydrocarbons (DGH) projected crude oil production is about 31 MMT during 2027-28. Domestic Oil Marketing Companies (OMCs) and refineries import crude oil to meet the domestic POL consumption and POL exports.

Government has adopted a five-pronged strategy comprising increasing domestic production of  oil  and  gas,  promoting  energy  efficiency  and  conservation  measures,  giving  thrust  on demand substitution, promoting biofuels and other alternate fuels/ renewables, EV charging facilities  and  refinery  process  improvements  for  reducing  the  county's  oil  dependence  on imported crude oil.

Various  steps  have  been  taken  by  the  Government  to  increase  the  production  of  domestic crude oil and bring down imports. These inter-alia include Discovered Small Field Policy, Reforms in Hydrocarbon Exploration and Licensing Policy for enhancing domestic exploration and production of Oil & Gas 2019, Natural Gas Marketing Reforms 2020, Policy to promote and incentivize enhanced recovery methods for Oil and Gas, Redevelopment of existing  matured  fields  and  development  of  new/marginal  fields,  Revival  of  Sick  Wells, improving recovery factors through the implementation of Improved Oil Recovery (IOR) and Enhanced  Oil  Recovery  (EOR)  techniques,  etc.  Government  has  also  provided  functional freedom  to  national  Oil  Companies  and  promoted  wider  private  sector  participation  by streamlining approval processes through electronic single window mechanism.

In  addition,  Government  launched  National  Biofuel  Policy,  2018,  to  boost  availability  of biofuels in country and use of alternative clean fuels like ethanol, bio-diesel and bio-CNG through  schemes  for  Ethanol  Blending,  Bio-diesel  blending  and  Sustainable  Alternative Towards Affordable  Transportation.  Ethanol  blending  in  Petrol  during  the  Ethanol  Supply Year (ESY) 2021-22 (December 2021-November 2022) is estimated to have had impact of over Rs. 22,600 Crore on the import bill of crude oil and petroleum products. The National Policy  on  Biofuels  -  2018  as  amended  targets  20%  blending  of  ethanol  in  petrol  by  ESY 2025-26. Public Sector OMCs have already achieved over 10% ethanol blending in petrol during Ethanol Supply Year (ESY) 2021-22. Sale of E-20 (20% ethanol blended petrol) fuel has also been launched in February, 2023.

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