Lok Sabha Question No. 1340 (UNSTARRED), answered on 2016-05-02
Subject: Profit/Loss to Refineries
Ministry: PETROLEUM AND NATURAL GAS
Asked by: JYOTIRADITYA MADHAVRAO SCINDIA, MALLIKARJUN  KHARGE, HEMANT TUKARAM GODSE, RAMESH BIDHURI, ELUMALAI VELLAIGOUNDER, K. GOPAL

## LOK SABHA UNSTARRED QUESTION NO.1340 TO BE ANSWERED ON 2 ND  MAY, 2016

## PROFIT/LOSS TO REFINERIES

## 1340.  SHRI JYOTIRADITYA M. SCINDIA:

SHRI MALLIKARJUN KHARGE:

SHRI GODSE HEMANT TUKARAM:

SHRI RAMESH BIDHURI:

SHRI V. ELUMALAI:

DR. K. GOPAL:

## isVªksfy;e vkSj izkÑfrd xSl ea=h

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

- (a) the cost of crude oil procured by the Oil Marketing Companies (OMCs) and the amount of net profit per barrel earned by them during the last three years;
- (b) whether the reforms in the fuel sector have helped OMCs to reduce debt levels and replace high cost debt with low cost foreign currency debt and if so, the details thereof;
- (c)  whether  the  OMCs  are  incurring  losses  and  have  reported  turnover  drop  during  the  last  two quarters of the current year on account of huge inventory and foreign exchange losses as well as low refining  margins  and  if  so,  the  details  thereof  along  with  profit/loss  and  turnover  incurred  by  the OMCs during the current year, quarter/OMC-wise;
- (d)  the  quantum  of  oil  refined  by  OMCs  during  the  twelfth  plan  and  the  quantum  of  production achieved against the installed capacity of OMCs and the steps taken by the Government for optimum utilisation of refining capacity during the current plan, OMC-wise; and
- (e)  whether  the  various  upstream  oil  companies  disagree  with  the  present  mechanism  and  have demanded an amicable formula for sharing of subsidy and if so, the details thereof and the steps taken in this regard?

## 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  quantity  and  value  of  crude  oil  procured  by  the  Public  Sector  Oil  Marketing Companies (OMCs) since 2012-13 is given in Annexure 1.

The Net Refining Margin (NRM) per barrel of the PSU OMC refineries since 2012-13 are given below:

($/bbl.)

| Net Refining Margin   | Net Refining Margin   | Net Refining Margin   | Net Refining Margin   | Net Refining Margin   |
|-----------------------|-----------------------|-----------------------|-----------------------|-----------------------|
|                       | 2012-13               | 2013-14               | 2014-15               | Apr-Dec'2015          |
| IOCL                  | 0.05                  | 1.30                  | (2.35)                | 3.22                  |
| BPCL                  | 1.86                  | 1.44                  | 1.09                  | 4.02                  |
| HPCL                  | (1.48)                | 0.35                  | (0.28)                | 2.67                  |

The overall net profit after tax (PAT) reported by the PSU OMCs since 2012-13 are given below:

(Rs. Crore)

|      |   2012-13 |   2013-14 |   2014-15 |   Apr-Dec'2015 |
|------|-----------|-----------|-----------|----------------|
| IOCL |      5005 |      7019 |      5273 |           9163 |
| BPCL |      2643 |      4061 |      5085 |           4883 |
| HPCL |       905 |      1734 |      2733 |           2310 |

- (b):    The level of debt of the PSU OMCs is given below:

(Rs. Crore)

| OMC   | Type / Currency   |   31.3.2013 |   31.3.2014 |   31.3.2015 |   31.12.2015 |
|-------|-------------------|-------------|-------------|-------------|--------------|
| IOC   | Foreign Currency  |       45936 |       55153 |       35610 |        35524 |
| IOC   | INR               |       34958 |       31110 |       19638 |        13596 |
| IOC   | Total             |       80894 |       86263 |       55248 |        49121 |
| BPC   | Foreign Currency  |       20763 |       16475 |       11308 |        15556 |
| BPC   | INR               |        3076 |        3847 |        1790 |         1130 |
| BPC   | Total             |       23839 |       20322 |       13098 |        16686 |
| HPC   | Foreign Currency  |       26575 |       26604 |       16033 |        18426 |
| HPC   | INR               |        7214 |        5560 |        4303 |         1543 |
| HPC   | Total             |       33789 |       32164 |       20335 |        19969 |

- (c): The OMCs-wise details of turnover, Gross refining margin (GRM) Net profit after tax (PAT), inventory gain/loss and foreign exchange gain/loss for the Q1, Q2 & Q3 of the current financial year are given in Annexure 2 .
- (d): The crude oil  processed  by  OMCs  viz-a-viz  their  installed  capacity  during  the  12 th five year plan is given at Annexure 3.

The  refinery  sector  in  the  country  is  de-licensed  and  Oil  PSUs  take  appropriate decisions to implement new refinery projects, expand and modernize the existing Refineries. PSUs refineries in India have been achieving average capacity utilization of over 100% for last three years.

- (e): The Public Sector upstream Oil Companies, namely Oil and Natural Gas Corporation (ONGC) & Oil India Limited (OIL) have requested the Government to review the subsidy sharing mechanism and exempt them from sharing of subsidy.  In the financial year 2015-16, Government has decided to provide a fixed fiscal subsidy of Rs.18 per kg under the Direct Benefit Transfer for Domestic LPG during April - October, 2015 and Rs.15 per kg for the period November, 2015 onwards. This, at present, covers the entire burden of DBTL subsidy on  Domestic  LPG  and  no  sharing  of  subsidy  is  being  done  by  the  Public  Sector  Oil Companies.  Government has also approved budgetary support for sharing the under-recovery on PDS Kerosene for current financial year @ Rs.12/ Litre and the balance under-recovery would  be  borne  by  the  Public  Sector  Oil  Companies.  However,  in  view  of  the  request  of Public Sector upstream Oil Companies for relief from sharing the under-recovery of OMCs; they have been exempted from sharing of under-recoveries of OMCs in Q3 of the financial year 2015-16.

Annexure referred to in reply to part (a) of the Lok Sabha Unstarred Question No. 1340 asked by Shri  Jyotiraditya  M.  Scindia,  Shri  Mallikarjun  Kharge,  Shri  Godse Hemant Tukaram, Shri Ramesh Bidhuri, Shri V. Elumalai Dr. K. Gopal to be answered on 2 nd May, 2016 regarding 'Profit/Loss To Refineries'.

## Crude oil procurement and cost of PSU OMCs since 2012-13

|                                               | 2012-13   | 2013-14   | 2014-15   | Apr-Dec'15   |
|-----------------------------------------------|-----------|-----------|-----------|--------------|
| IOCL                                          | IOCL      | IOCL      | IOCL      | IOCL         |
| Crude oil procured quantity (TMT)             | 54746     | 53675     | 54302     | 43787        |
| Crude oil procured quantity (Million Barrel)* | 403.48    | 395.58    | 400.20    | 322.71       |
| Crude oil procured cost (Rs. Crore)           | 238079    | 255103    | 203094    | 106130       |
| BPCL                                          | BPCL      | BPCL      | BPCL      | BPCL         |
| Crude oil procured quantity (TMT)             | 22924     | 23061     | 23620     | 17892        |
| Crude oil procured quantity (Million Barrel)  | 172.32    | 173.73    | 178.25    | 135.8        |
| Crude oil procured cost (Rs. Crore)           | 103972    | 114593    | 93672     | 45654        |
| HPCL                                          | HPCL      | HPCL      | HPCL      | HPCL         |
| Crude oil procured quantity (TMT)             | 15506     | 15748     | 16142     | 12720        |
| Crude oil procured quantity (Million Barrel)  | 115.61    | 117.23    | 120.76    | 94.89        |
| Crude oil procurement cost (Rs. Crore)        | 69330     | 76222     | 61073     | 30451        |

Annexure referred to in reply to part (c) of the Lok Sabha Unstarred Question No. 1340 asked by Shri  Jyotiraditya  M.  Scindia,  Shri  Mallikarjun  Kharge,  Shri Godse Hemant Tukaram, Shri Ramesh Bidhuri, Shri V. Elumalai Dr. K. Gopal to be answered on 2 nd May, 2016 regarding 'Profit/Loss To Refineries'.

Quarter wise Financial Details of the PSU OMC during 2015-16

| OMC                                                | Q1,2015-16                                         | Q2,2015-16                                         | Q3,2015-16                                         |
|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|
| Turnover (Rs. Crore)                               | Turnover (Rs. Crore)                               | Turnover (Rs. Crore)                               | Turnover (Rs. Crore)                               |
| IOC                                                | 101009                                             | 85115                                              | 83179                                              |
| BPC                                                | 51917                                              | 46423                                              | 46613                                              |
| HPC                                                | 51720                                              | 42004                                              | 43431                                              |
| Net Profit After Tax (Rs. Crore)                   | Net Profit After Tax (Rs. Crore)                   | Net Profit After Tax (Rs. Crore)                   | Net Profit After Tax (Rs. Crore)                   |
| IOC                                                | 6436                                               | -329                                               | 3057                                               |
| BPC                                                | 2376                                               | 1018                                               | 1489                                               |
| HPC                                                | 1588                                               | -321                                               | 1042                                               |
| Gross Refining Margin ($/bbl)                      | Gross Refining Margin ($/bbl)                      | Gross Refining Margin ($/bbl)                      | Gross Refining Margin ($/bbl)                      |
| IOC                                                | 10.77                                              | 0.90                                               | 5.96                                               |
| BPC                                                | 8.55                                               | 3.87                                               | 7.67                                               |
| HPC                                                | 8.56                                               | 2.74                                               | 7.86                                               |
| Inventory Loss/ (Gain) (Rs. Crore)                 | Inventory Loss/ (Gain) (Rs. Crore)                 | Inventory Loss/ (Gain) (Rs. Crore)                 | Inventory Loss/ (Gain) (Rs. Crore)                 |
| IOC                                                | (3218)                                             | 5137                                               | 4477                                               |
| BPC                                                | (778)                                              | 1721                                               | 1495                                               |
| HPC                                                | (955)                                              | 2367                                               | 1205                                               |
| Foreign Currency Exchange Loss/ (Gain) (Rs. Crore) | Foreign Currency Exchange Loss/ (Gain) (Rs. Crore) | Foreign Currency Exchange Loss/ (Gain) (Rs. Crore) | Foreign Currency Exchange Loss/ (Gain) (Rs. Crore) |
| IOC                                                | (329)                                              | (792)                                              | 18                                                 |
| BPC                                                | 48                                                 | 236                                                | 100                                                |
| HPC                                                | (53)                                               | (136)                                              | (48)                                               |

Annexure referred to in reply to part (d) of the Lok Sabha Unstarred Question No. 1340 asked by Shri  Jyotiraditya  M.  Scindia,  Shri  Mallikarjun  Kharge,  Shri Godse Hemant Tukaram, Shri Ramesh Bidhuri, Shri V. Elumalai Dr. K. Gopal to be answered on 2 nd May, 2016 regarding 'Profit/Loss To Refineries'.

| 12 Th Plan: Refineries_ Installed Capacity, Crude processing and Capacity Utilisation   | 12 Th Plan: Refineries_ Installed Capacity, Crude processing and Capacity Utilisation   | 12 Th Plan: Refineries_ Installed Capacity, Crude processing and Capacity Utilisation   | 12 Th Plan: Refineries_ Installed Capacity, Crude processing and Capacity Utilisation   | 12 Th Plan: Refineries_ Installed Capacity, Crude processing and Capacity Utilisation   | 12 Th Plan: Refineries_ Installed Capacity, Crude processing and Capacity Utilisation   | 12 Th Plan: Refineries_ Installed Capacity, Crude processing and Capacity Utilisation   | 12 Th Plan: Refineries_ Installed Capacity, Crude processing and Capacity Utilisation   | 12 Th Plan: Refineries_ Installed Capacity, Crude processing and Capacity Utilisation   | 12 Th Plan: Refineries_ Installed Capacity, Crude processing and Capacity Utilisation   |
|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|
|                                                                                         | Installed Capacity (MMTPA)                                                              | Crude Oil Processing (MMT)                                                              | Crude Oil Processing (MMT)                                                              | Crude Oil Processing (MMT)                                                              | Crude Oil Processing (MMT)                                                              | Utilisation (%)                                                                         | Utilisation (%)                                                                         | Utilisation (%)                                                                         | Utilisation (%)                                                                         |
| PSU                                                                                     | 01.04.12 to 01.04.15                                                                    | 2012-13                                                                                 | 2013-14                                                                                 | 2014-15                                                                                 | 2015 - 2016 (P)                                                                         | 2012-13                                                                                 | 2013-14                                                                                 | 2014-15                                                                                 | 2015 - 2016 (P)                                                                         |
| IOCL                                                                                    | 54.2                                                                                    | 54.6                                                                                    | 53.1                                                                                    | 53.6                                                                                    | 57.2                                                                                    | 100.8                                                                                   | 98.0                                                                                    | 98.9                                                                                    | 100.9                                                                                   |
| HPCL                                                                                    | 14.8                                                                                    | 15.8                                                                                    | 15.5                                                                                    | 16.2                                                                                    | 17.2                                                                                    | 106.5                                                                                   | 104.8                                                                                   | 109.3                                                                                   | 116.5                                                                                   |
| BPCL                                                                                    | 21.5                                                                                    | 22.8                                                                                    | 23.0                                                                                    | 23.2                                                                                    | 24.1                                                                                    | 106.2                                                                                   | 106.8                                                                                   | 107.8                                                                                   | 112.0                                                                                   |
| Total                                                                                   | 90.5                                                                                    | 93.2                                                                                    | 91.6                                                                                    | 92.9                                                                                    | 98.5                                                                                    | 103.0                                                                                   | 101.2                                                                                   | 102.7                                                                                   | 108.9                                                                                   |