Lok Sabha Question No. 211 (UNSTARRED), answered on 2016-07-18
Subject: Profit to OMC
Ministry: PETROLEUM AND NATURAL GAS
Asked by: B.V. NAYAK, SUNIL KUMAR SINGH, KANWAR SINGH TANWAR

## LOK SABHA UNSTARRED QUESTION NO. 211 TO BE ANSWERED ON 18 TH  JULY, 2016

## PROFIT TO OMC

- 211.

## SHRI: B.V. NAIK:

SHRI KANWAR SINGH TANWAR:

## isVªksfy;e vkSj izkÑfrd xSl ea=h

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

- (a) whether there is an increase in profit of public sector oil companies after implementation of market linked pricing mechanism and if so, the details thereof along with profit earned by them during the last three years, company-wise;
- (b) the total volume of petrol and diesel being supplied by these companies and its percentage of the total supply in the country;
- (c) whether the prices of petroleum products have been brought down by the Government recently and if so, the details thereof;
- (d) the extent to which petroleum companies have recovered their losses in view of the reduction in crude oil prices in the international market and the current status of the losses being suffered by them despite the subsidy being given to them by the Government during the said period; and
- (e)  the  steps  taken/being  taken  by  the  Government/public  sector  oil  companies  to  minimise  these losses?

## 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 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 |

- (b):     The details of Petrol and Diesel consumption by Public Sector OMCs along with their percentage to total consumption are given below:
- (c): OMCs have reduced the retail selling price of Petrol and Diesel by Rs. 0.89/litre and Rs.0.49/litre respectively at Delhi with effect from 1 st July, 2016 and made further reduction of  Rs.  2.25/litre  and  Rs.0.42/litre  in  retail  selling  price  of  Petrol  and  Diesel  respectively  at Delhi with effect from 16 th July, 2016.
- (d) & (e): All petroleum products except PDS Kerosene and Subsidized Domestic LPG have been deregulated and the Public Sector OMCs decide their retail prices in line with their international  product  prices  and  other  market  conditions.  As  regards  PDS  Kerosene  and Subsidized domestic LPG, the subsidy burden on account of sale below market price in being borne by the Government and Public Sector upstream oil companies.

|         | MS                               | MS                          | MS                     | HSD                             | HSD                        | HSD                   |
|---------|----------------------------------|-----------------------------|------------------------|---------------------------------|----------------------------|-----------------------|
| Year    | Public Sector OMC Sales (in TMT) | Total Consum ption (in TMT) | %of total consumpti on | Public Sector OMCSales (in TMT) | Total Consumption (in TMT) | %of total consumption |
| 2013-14 | 16726                            | 17128                       | 97.7                   | 68166                           | 68364                      | 99.7                  |
| 2014-15 | 18587                            | 19075                       | 97.4                   | 68661                           | 69416                      | 98.9                  |
| 2015-16 | 21077                            | 21846                       | 96.5                   | 71977                           | 74639                      | 96.4                  |

As  stated  in  reply  to  part  (a)  above,  the  profit  of  the  Public  Sector  OMCs  have increased in 2015-16 as compared to the immediately preceding two years i.e. 2013-14 and 2014-15.

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