Lok Sabha Question No. 2720 (UNSTARRED), answered on 2016-03-14
Subject: Expenditure incurred by Oil Companies
Ministry: PETROLEUM AND NATURAL GAS
Asked by: RAMA DEVI

## LOK SABHA UNSTARRED QUESTION NO. 2720 TO BE ANSWERED ON 14 TH   MARCH, 2016

## EXPENDITURE INCURRED BY OIL COMPANIES

2720.

SHRIMATI RAMA DEVI :

DR. SWAMI SAKSHIJI  MAHARAJ :

## isVªksfy;e vkSj izkd`frd xSl ea=h

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

- (a)        the  details  of  loan  taken  by  Oil  Marketing  Companies  (OMCs)  along  with interest paid by them during the last three years and the current year, OMC-wise;
- (b) whether the amount of loans taken are not being utilised properly and if so, the details thereof along with investigation undertaken by the Government in this regard;
- (c)  whether  the  production  cost  of  petroleum  products  is  escalating  due  to  the injudicious/ illogical expenditure of OMC if so, the details thereof along with the steps taken/probe conducted to curb such injudicious and Non-Plan expenditure during the said period, OMC-wise;
- (d) the details of loss incurred by OMCs on petrol, diesel, LPG in rupees during the said period; and
- (e) the details of the reduction of subsidy on LPG cylinders/diesel due to recent rise in prices of such commodities in the country?

## ANSWER

## isVªzksfy;e vkSj izkd`frd xSl ea=ky; esa jkT; ea=h -Lora= izHkkj ¼Jh /kesZUnz iz/kku½

## MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI DHARMENDRA PRADHAN)

- (a)    -    The  Oil  Marketing  Companies  (OMCs)  have  informed  that  the  total  loans outstanding as on 31 st December, 2015, 31 st March, 2015, 31 st March, 2014 and 31 st March, 2013 are as under :

| OMCs   | Total Loans outstanding as on (in ₹ crores)   | Total Loans outstanding as on (in ₹ crores)   | Total Loans outstanding as on (in ₹ crores)   | Total Loans outstanding as on (in ₹ crores)   |
|--------|-----------------------------------------------|-----------------------------------------------|-----------------------------------------------|-----------------------------------------------|
|        | 31 Dec., 2015                                 | 31 Mar., 2015                                 | 31 Mar., 2014                                 | 31 Mar., 2013                                 |
| IOCL   | 49,120.00                                     | 55,248.00                                     | 86,263.00                                     | 80,894.00                                     |
| BPCL   | 16,686.11                                     | 13,097.60                                     | 20,321.56                                     | 23,839.04                                     |
| HPCL   | 19,968.65                                     | 20,335.34                                     | 32,164.55                                     | 33,789.03                                     |

Interest paid by OMCs during April-Dec. 2015, 2014-15, 2013-14 and 2012-13 is as under :

| OMCs   | Interest paid during (in ₹ crores)   | Interest paid during (in ₹ crores)   | Interest paid during (in ₹ crores)   | Interest paid during (in ₹ crores)   |
|--------|--------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|
|        | 2015-16 (Till Dec.15)                | 2014-15                              | 2013-14                              | 2012-13                              |
| IOCL   | 2,161.00                             | 3,381.00                             | 4,569.00                             | 6,104.00                             |
| BPCL   | 291.17                               | 491.24                               | 1,225.52                             | 1,762.48                             |
| HPCL   | 448.80                               | 706.59                               | 1,336.36                             | 1,412.80                             |

(b)  -  OMCs have informed that all loans taken by them are utilized for the purpose for which they are availed.

(c)  -  Major part of input cost consists of Crude Oil Cost which depends upon the international  quotes  of  crude  oil  and  varies  accordingly.  Variation  (Increase  & Decrease)  in  refining  cost  depends  on  Refinery  Shutdown  maintenance  activities and loading of one time catalyst. Considering the same, the variation in refining cost is  due to normal variation. Hence, the production cost is not escalating due to the injudicious/illogical expenditure of the companies.

(d) & (e)  -  The prices of Petrol and Diesel have been made market determined by the Government effective 26 th June, 2010 and 19 th October, 2014 respectively. Since then, the Public Sector Oil Marketing Companies (OMCs) take appropriate decision on pricing of Petrol and Diesel in line with their international prices and other market conditions. However, the Government continues to modulate the Retail Selling Price of Subsidized domestic LPG (up to 12 cylinders per annum to each consumer).

The details of total subsidy/under-recovery on Petroleum Products is given as under :

| Year               | Diesel   | Domestic LPG   |
|--------------------|----------|----------------|
|                    | ₹ Crore  | ₹ Crore        |
| 2012-13            | 92,061   | 41,565         |
| 2013-14            | 62,837   | 40,569         |
| 2014-15            | 10,935*  | 40,569         |
| 2015-16 (9 months) | 0        | 12,084         |

*  Under-recovery on Diesel up to 18.10.2014 only.

****