Lok Sabha Question No. 3678 (UNSTARRED), answered on 2016-08-08
Subject: Subsidy on Kerosene
Ministry: PETROLEUM AND NATURAL GAS
Asked by: NALIN KUMAR KATEEL, ASADUDDIN OWAISI, N.K. PREMACHANDRAN, BHAIRON PRASAD MISHRA, K. KAMARAAJ

## LOK SABHA

## UNSTARRED QUESTION NO. 3678 TO BE ANSWERED ON 8 TH  AUGUST, 2016

## SUBSIDY ON KEROSENE

## 3678.   SHRI NALIN KUMAR KATEEL:

SHRI ASADUDDIN OWAISI:

SHRI N.K. PREMACHANDRAN:

SHRI BHAIRON PRASAD MISHRA:

DR. K. KAMARAJ:

## isVªksfy;e vkSj izkÑfrd xSl ea=h

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

- (a) the details of under-recoveries/ subsidy given on kerosene and LPG to upstream/downstream companies and quantum of burden borne by the Government during the last three years and the current year, company-wise including ONGC;
- (b)  the  details  of  increase  in  the  price  of  natural  gas  during  the  above  period  and  subsidy given by the Government to the domestic consumers;
- (c) whether high administrative costs/ inventory losses by downstream companies have taken away the benefits accruing from fall in the prices of crude oil and if so, the details thereof and the reaction of the Government thereto along with the corrective measures taken/being taken by the Government in this regard; and
- (d) whether the Government proposes to set up a committee for ensuring proper distribution of kerosene in the country and if so, the details thereof?

## ANSWER

## isVªksfy;e vkSj izkÑfrd xSl ea=h ( Lora= izHkkj ) ¼Jh /keZsUnz iz/kku½

## MINISTER OF STATE (I/C) IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI DHARMENDRA PRADHAN)

(a): The  company-wise  details  of  under-recovery/subsidy  incurred  on  the  sale  of  PDS Kerosene  and  Subsidized  Domestic  LPG  (including  DBTL)  by  the  Public  Sector  Oil Marketing Companies (OMCs) and  the burden sharing of  under-recoveries  on the sale of Diesel (up to 18.10.2014), PDS Kerosene and Subsidized Domestic LPG (including DBTL) during the last three years and the current year (1 st Quarter) are given in Annexure.

- (b):     The details of revision in price of natural gas since 1 st April 2013 are given below:

*on NCV basis, all others are on GCV basis.

| From      | To         | $/MMBTU   |
|-----------|------------|-----------|
| 1.4.2013  | 31.10.2014 | 4.20*     |
| 1.11.2014 | 31.3.2015  | 5.05      |
| 1.4.2015  | 30.9.2015  | 4.66      |
| 1.10.2015 | 31.3.2016  | 3.82      |
| 1.4.2016  | 30.9.2016  | 3.06      |

The subsidy provided on natural gas to the North East region of India since 2013-14 is as under:

(Rs. Crore)

|   2013-14 |   2014-15 |   2015-16 | Q1, 2016-17   |
|-----------|-----------|-----------|---------------|
|       625 |       661 |       660 | 136.97*       |

*provisional

- (c): The Public Sector Oil Marketing Companies (OMCs) purchase crude oil based on the price in the international markets. The price of finished products in India is linked to their price in the international markets. The spread (crack margin) between the price of crude oil and petroleum products is linked to the gross profits of refineries.  The overall profitability position  of  oil  PSUs  depends  upon  various  other  general  and  specific  factors  including inventory  losses.The  Profit    After  Tax  (PAT)  of  Public  Sector  Oil  Marketing  Companies (OMCs) during the last three years is given below:

(Rs.crore)

|      |   2013-14 |   2014-15 |   2015-16 |
|------|-----------|-----------|-----------|
| IOCL |      7019 |      5273 |     10399 |
| BPCL |      4061 |      5085 |      7432 |
| HPCL |      1734 |      2733 |      3863 |

- (d): There is no such proposal before the Government.

x-x-x-x-x

Annexure referred to in reply to part (a) of the Lok Sabha Unstarred Question No. 3678 asked by Shri Nalin Kumar Kateel, Shri Asaduddin Owaisi, Shri N.K. Premachandran, Shri Bhairon Prasad Mishra and Dr. K. Kamaraj to be answered on  8 th August, 2016 regarding 'Subsidy on Kerosene'.

(Rs. Crore)

| Under-recovery/Subsidy on PDS Kerosene and Domestic LPG (including DBTL)   | Under-recovery/Subsidy on PDS Kerosene and Domestic LPG (including DBTL)   | Under-recovery/Subsidy on PDS Kerosene and Domestic LPG (including DBTL)   | Under-recovery/Subsidy on PDS Kerosene and Domestic LPG (including DBTL)   | Under-recovery/Subsidy on PDS Kerosene and Domestic LPG (including DBTL)   | Under-recovery/Subsidy on PDS Kerosene and Domestic LPG (including DBTL)   | Under-recovery/Subsidy on PDS Kerosene and Domestic LPG (including DBTL)   | Under-recovery/Subsidy on PDS Kerosene and Domestic LPG (including DBTL)   |
|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|
| Year                                                                       | IOCL                                                                       | IOCL                                                                       | HPCL                                                                       | HPCL                                                                       | BPCL                                                                       | BPCL                                                                       |                                                                            |
|                                                                            | Domestic LPG                                                               | PDS Kerosene                                                               | Domestic LPG                                                               | PDS Kerosene                                                               | Domestic LPG                                                               | PDS Kerosene                                                               | Total                                                                      |
| 2013-14                                                                    | 25,658                                                                     | 20,903                                                                     | 13,422                                                                     | 5,440                                                                      | 13,166                                                                     | 4,912                                                                      | 83,502                                                                     |
| 2014-15                                                                    | 19,894                                                                     | 16,635                                                                     | 10,484                                                                     | 4,293                                                                      | 10,192                                                                     | 3,876                                                                      | 65,375                                                                     |
| 2015-16                                                                    | 8,229                                                                      | 7,748                                                                      | 3,986                                                                      | 1,952                                                                      | 3,859                                                                      | 1,797                                                                      | 27,571                                                                     |
| 2016-17(Q1)                                                                | 1,142                                                                      | 1,332                                                                      | 485                                                                        | 328                                                                        | 504                                                                        | 307                                                                        | 4,098                                                                      |

## Burden sharing of the under-recoveries

(Rs. Crore)

| Year Government   | Upstream Companies   | Upstream Companies   | Upstream Companies   | OMCs   | OMCs   | OMCs      |
|-------------------|----------------------|----------------------|----------------------|--------|--------|-----------|
|                   | ONGC                 | OIL                  | GAIL                 | IOCL   | HPCL   | BPCL      |
| 2013-14 77242     | 56384                | 8737                 | 1900                 | 1083   | 482    | 512       |
| 2014-15 31302     | 36300                | 5523                 | 1000                 | 1201   | 496    | 487       |
| 26301             | 1096                 | 155                  | 0                    | 9      | 8      | 2015-16 1 |
| 2016-17(Q1) 4095  | 0                    | 0                    | 0                    | 2      | 0      | 0         |