MINISTER OF PETROLEUM & NATURAL GAS (SHRI MURLI DEORA)
(a) to (d): A statement is laid on the Table of the House.
STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF LOK SABHA STARRED QUESTION NO. 72 BY
SHRI JAGDISH SHARMA AND SHRI HARSH VARDHAN TO BE ANSWERED ON 29TH JULY, 2010 REGARDING
PRODUCTION OF PETROL AND DIESEL
(a) The production of Public Sector oil companies out of the total petrol and diesel produced
in the country for the year 2009-10 is given below:-
(Thousand Tonnes)
Product Public Sector Private Sector Total Production
Petrol 10935 11619 22554
Diesel 45297 27952 73249
(b) and (c): As reported by the Oil Marketing Companies, the Refinery Transfer Price (RTP) for
petrol and Diesel is fixed based on trade Parity Price w.e.f. 16th June, 2006, based on the
recommendations of the Rangarajan Committee. The elements considered in the trade parity price
are briefly indicated below:
Trade Parity Price
This is the weighted average of import parity and export parity prices in the ratio of
80:20.
Import Parity Price (80%)
(i) FOB Price at Arab Gulf.
(ii) Ocean freight from Arab Gulf to Indian ports
(iii) Customs Duty
(iv) Insurance charges
(v) Ocean Loss, LC charges, Port dues and wharfage
Export Parity Price (20%)
FOB price at Arab Gulf plus advance licence benefit in case there is custom duty on crude.
In the light of the recommendation made by the Kirit Parikh Committee on a Viable and
Sustainable Pricing System of Petroleum Products, the prices of Petrol and Diesel have been
made market-determined both at the refinery gate and the retail level, with effect from
26.6.2010. In the case of diesel, however, it has been decided that for the present, the
price would be increased by Rs.2 per litre only. It has also been decided that in case of
a high rise and volatility in the international oil prices, Government will suitably intervene
in the pricing of Petrol and Diesel.
(d) The profit and loss of an oil company covers its entire product basket besides other
operations and revenue streams. Further, the margins earned by the oil companies on Trade
Parity basis depend upon movement of international product prices which fluctuate on a daily
basis. Hence, it is difficult to indicate the maximum and minimum profit earned on petrol and
diesel on the basis of Trade Parity pricing. However, the Profit after Tax realized by the
Public Sector Oil Marketing Companies since 2006-07 is given below:
(Rs. Crore)
Company 2006-07 2007-08 2008-09 2009-10
Indian Oil Corporation Limited 7499 6963 2950 10221
Bharat Petroleum Corporation 1806 1581 736 1538
Limited
Hindustan Petroleum 1571 1135 575 1301
Corporation Limited
