Lok Sabha Question No. 3419 (UNSTARRED), answered on 2015-08-10
Subject: Amount spent on Advertisements by OMC
Ministry: PETROLEUM AND NATURAL GAS
Asked by: OM BIRLA

**LOK SABHA**

UNSTARRED QUESTION  No. 3419

TO BE ANSWERED ON 10.08.2015

**AMOUNT SPENT ON ADVERTISEMENTS BY OMC**

3419.  SHRI OM BIRLA:

**पेट्रोलियम और प्राकृतिक गैस मंत्री**

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

1. the amount spent on advertisement and public relations by the Oil Marketing Companies (OMCs) during the last three years and the current year along with the percentage of their profit and turnover spent on such activities;

1. whether the Government proposes to review the policy of expenses incurred by OMCs in the said activities;

1. if so, the details thereof along with criteria/guidelines issued in this regard;

1. whether the OMCs are spending huge expenditure on advertisement to encourage use of branded fuels in the country; and

1. if so, the details thereof along with awareness programmes formulated by the Government for use of branded fuels?

**ANSWER**

**पेट्रोलियम और प्राकृतिक गैस मंत्रालय में राज्य मंत्री (स्वतंत्र प्रभार)**

**(श्री धर्मेन्द्र प्रधान)**

**MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF PETROLEUM & NATURAL GAS**

**(SHRI DHARMENDRA PRADHAN)**

**(a):** The OMC-wise and year-wise details are given below:

**Hindustan Petroleum Corporation Limited (HPCL)**

(Rupee in crore)

| Year    |   Amount spent                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   % of profit Before Tax (PBT) |   % of Gross Sales |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------------------|
| 2012-13 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                30.10 |                           2.04 |               0.01 |
| 2013-14 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                31.49 |                           1.20 |               0.01 |
| 2014-15 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                38.08 |                           0.92 |               0.02 |

**Indian Oil Corporation Limited (IOCL)**

| Year    |   Amount spent |   % of Profit |   % of Turnover |
|---------|----------------|---------------|-----------------|
| 2012-13 |         187.78 |          3.75 |            0.05 |
| 2013-14 |         185.52 |          2.65 |            0.04 |
| 2014-15 |         196.92 |          3.73 |            0.04 |

**Bharat Petroleum Corporation Limited (BPCL)**

| Year    |   Amount spent |   % of Profit After Tax (PAT) |   % of Turnover |
|---------|----------------|-------------------------------|-----------------|
| 2012-13 |          45.89 |                          1.74 |            0.02 |
| 2013-14 |          41.37 |                          1.02 |            0.02 |
| 2014-15 |          51.30 |                          1.01 |            0.02 |

**(b) & (c):** The management of OMCs take decisions about advertisements and expenses incurred.

**(d) & (e):** OMCs spend on advertisement for branded fuels as per marketing requirement. The company wise expenditure is as following:

(Rupee in lakh)

| **Year**   |   **HPCL** |   **IOCL** |   **BPCL** |
|------------|------------|------------|------------|
| 2012-13    |       0.63 |        1.0 |        3.0 |
| 2013-14    |       0.28 |          0 |        2.0 |
| 2014-15    |       3.74 |        2.0 |       17.0 |

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