Lok Sabha Question No. 232 (STARRED), answered on 2023-08-04
Subject: Shortage of Petroleum Products/Crude
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Sunil Kumar Mondal

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS DEPARTMENT OF CHEMICALS AND PETROCHEMICALS

## LOK SABHA STARRED QUESTION NO. *232 TO BE ANSWERED ON 04.08.2023

## Shortage of Petroleum Products/Crude

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## *232.  SHRI SUNIL KUMAR MONDAL:

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

- a. whether the Government has been successful in controlling the price rise in chemicals and petrochemicals in the country and if so, the details thereof;
- b. the details of the schemes or plans launched to fulfil the shortage of petroleum products/crude during the last three years and the current year, year-wise;
- c. the details of the funds allocated and utilized for the said purpose for the FY 2022-23;
- d. whether the Government has taken/proposes to take any measures in this regard; and
- e. if so, the details thereof and if not, the reasons therefor?

## ANSWER

## MINISTER FOR CHEMICALS AND FERTILIZERS (DR. MANSUKH MANDAVIYA)

(a):  The Chemical and Petrochemical sector is mainly deregulated, de-licensed except for few hazardous chemicals. 100% FDI is generally permitted through the automatic route without any sectoral cap in the petrochemical sector. There is no regulatory control

- on the pricing of chemical and petrochemical products.
- (b) to (e): Oil Marketing Companies (OMCs) have informed that there is no shortage of petroleum products for meeting the demand  in  the  Country.  To  continue  to  meet  the

demand of petroleum products across the Country, OMCs undertake various projects to enhance refining capacities and marketing infrastructure comprising of pipeline network, supply and distribution network etc.

The details of production and consumption of petroleum products for last three years and current year is as under:

(Fig. In MMT)

| Year                   |   Production |   Consumption |
|------------------------|--------------|---------------|
| 2020-21                |        233.5 |         194.3 |
| 2021-22                |        254.3 |         201.7 |
| 2022-23                |        266.5 |         223   |
| 2023-24(April-June,23) |         69.4 |          58.1 |

Source: PPAC (Petroleum Planning & Analysis Cell)

Various policy initiatives have been undertaken during last three years to increase the domestic production and fulfil the shortage of crude oil which inter-alia include

- i. Reforms in Hydrocarbon Exploration and Licensing Policy for enhancing domestic exploration and production of oil and gas, 2019
- ii. Dispute Resolution Committee, 2019
- iii. Discovered Small Field (DSF) Policy, 2015

So  far,  Seven  Open  Acreage  Licensing  Policy  (OALP)  Rounds  were  successfully concluded  with  award  of  134  exploration  blocks  covering  2,07,691  sq.  km.  area  for Exploration  &  Production  activities.  During  last  three  years,  blocks  awarded  under OALP are as stated below:

| Financial Year (FY)   | OALP rounds conducted   | Number of Blocks awarded   |
|-----------------------|-------------------------|----------------------------|
| 2019-20               | OALP Bid Round- IV&V    | 18                         |
| 2020-21               | -                       | -                          |
| 2021-22               | OALP Bid Round VI &VII  | 29                         |

Under the three Discovered Small Field (DSF) bid rounds, a total of 85 Revenue Sharing Contracts (RSC) comprising 175 fields were awarded to successful bidders. In FY 202122, revenue sharing contracts for 31 Contract Areas were signed under DSF-III.

Based on the long term growth trends in consumption of Petrol and Diesel and various efforts of the Government towards energy transition, increasing adoption of Compressed Natural Gas (CNG), Bio fuels including Ethanol, Electric Vehicles (EV), etc. as well as evolving consumer preferences, this capacity is likely to be adequate to meet projected demand.

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