Lok Sabha Question No. 1813 (UNSTARRED), answered on 2024-08-01
Subject: Initiatives to Energy Security
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Dr. Pradeep Kumar Panigrahy

## LOK SABHA UNSTARRED QUESTION NO. 1813 TO BE ANSWERED ON 1 st  August 2024

## Initiatives to Energy Security

## 1813. Dr. Pradeep Kumar Panigrahy:

## पेůोिलयम और ÿाक ृ ितक गैस मंýी

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

(a) the details of the comprehensive strategies and initiatives implemented by the Government  to  ensure  energy  security,  sustainability  and  affordability  while  addressing challenges in exploration, production, distribution, pricing and environmental concerns; and

(b)  the  manner  in  which  the  Government  is  promoting  innovation,  technology  adoption, investments  and  international  collaborations  to  enhance  the  contribution  of  petroleum  and natural gas sector to India's energy independence and economic growth?

## ANSWER

## पेůोिलयम और ÿाक ृ ितक गैस मंýालय म¤ राºय मंýी ( ®ी सुरेश गोपी )

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

(a) and  (b):  Government  has  adopted  a  multi-pronged  strategy  to  improve  energy  security which comprises 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. In addition,  Government  has  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 (SATAT).

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

Central  Government  reduced Central Excise  duty  by  a  total  of  ₹  13/litre  and  ₹  16/litre  on petrol and diesel respectively in two tranches in November 2021 and May 2022, which was fully  passed  on  to  consumers.  Some  State  Governments  also  reduced  state  VAT  rates  to provide relief to citizens. In March, 2024, OMCs also reduced the retail prices of petrol and diesel by ₹ 2 per litre each and current RSP of petrol and diesel at Delhi is ₹ 94.72 and ₹ 87.62 per litre respectively.

Prices  of  LPG  in  the  country  are  based  on  Saudi  Contract  Price  (CP),  the  benchmark  for international prices of LPG. India imports more than 60% of its domestic LPG consumption. Government continues to modulate the effective price to consumer for domestic LPG. During the  period  2020-21  to  2022-23,  the  average  Saudi  CP  (international  benchmark  for  LPG pricing)  went  up  from  $415  per  MT  to  $712  per  MT.  However,  the  increase  in  the international prices was not fully passed on to the customers.

Under PAHAL Scheme, the domestic LPG cylinders are sold at non-subsidised price and the applicable  subsidy  to  the  consumers  is  transferred  directly  into  their  bank  accounts.  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 under-recoveries suffered by them in not passing on the high international LPG prices to the domestic LPG consumers.

W.e.f. 21 st May, 2022, Government has been providing a targeted subsidy of Rs. 200 per 14.2 Kg LPG cylinder for Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries for upto 12 refills a year. Government reduced the retail-selling price of domestic LPG by Rs. 200 per 14.2 Kg LPG  cylinder  with  effect  from  30 th August,  2023.  Moreover,  w.e.f.    5 th October,  2023, Government  increased  the  targeted  subsidy  to  Rs.  300  per  14.2  Kg  LPG  cylinder  for  all Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries. Government further reduced the RSP of domestic LPG by Rs. 100 per 14.2 Kg cylinder w.e.f. 9 th March, 2024. Prices of cooking gas in India, after the latest round of reduction, are one of the lowest globally, and even lower than in most LPG producing nations.

Further,  Compressed  Bio-Gas  (CBG)  Blending  Obligation  (CBO),  Scheme  for  Financial Assistance for procurement of Biomass Aggregation Machinery sets and Scheme for Direct pipeline infrastructure for CBG plants is launched by government to promote CBG utilization. In  order  to  encourage  the  establishment  of  2G  bio-ethanol  plant  using  cellulosic  and lignocellulosic biomass including petrochemical route and other feedstocks, Government has notified  the  'Pradhan  Mantri  JI-VAN  (Jaiv  IndhanVatavaran  Anukool  fasal  awashesh Nivaran)  Yojana'  for  providing  financial  support  for  setting  up  Second  Generation  (2G) bioethanol  projects  in  the  country.  Government  has  also  supported  projects  involving Research, Development & Technology Demonstration. Some of these projects are demonstration projects on advanced bio fuels, Hydrogen fuel based two wheelers, Hydrogen Spiked  Compressed  Natural  Gas  (H-CNG)  technology  based  public  transport  buses  etc. Further,  Government  has  also  promoted  setting  up  of  LNG  stations  on  National  Highways, golden quadrilaterals, etc. for promotion of LNG in long distance transportation.

To strengthen global cooperation for rapid adoption and deployment of biofuels, the Global Biofuels Alliance (GBA) was launched on 9 th September, 2023, on the sidelines of the G20 Summit in New Delhi with the support of 19 countries and 12 international organizations. The initiative aims to position biofuels as a key to energy transition. GBA is expected to provide additional  opportunities  to  Indian  industries  in  the  form  of  exporting  technology  and equipment, generating employment and skill development.

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