(a) whether the Government proposes to bring a white paper on the cost and profit
factors of the price, the consumer is paying, in view of rising international prices
of oil and Government’s imposing duties on oil, both indigenous and imported;
(b) if so, the details thereof;
(c) if not, the reasons therefor;
(d) whether the Government is taking the energy conservation seriously and ban future
trading in crude oil forthwith; and
(e) if not, the reasons therefor?
MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI R.P.N. SINGH)
(a): No, Madam.
(b): Does not arise.
(c): The Government, in order to insulate the common man from the impact of rise in
international oil prices and the domestic inflationary conditions, continues to modulate
the retail selling prices of Diesel, PDS Kerosene and Domestic LPG. Their current prices
are below the required market price, resulting in huge under-recovery to the Public Sector
Oil Marketing Companies (OMCs) on the sale of these products. Based on the refinery gate
price effective 1.12.2011, the OMCs are currently incurring under-recovery of 12.03 per
litre on the sale of Diesel, 28.56 per litre on PDS Kerosene and 287.00 per cylinder
on Domestic LPG. To give further relief to the consumers, the Central Government eliminated
Customs duty on crude oil with corresponding reduction in Customs duty on petroleum products
and reduced Excise duty on Diesel by 2.60 per litre with effect from 25.6.2011. Through
these measures, Government sacrificed annual revenue of 49,000 crore. In spite of these
measures, OMCs are expected to incur under-recoveries of 1,32,016 crore during the
current financial year.
(d)to(e): The Government looks upon oil conservation through its efficient utilisation as a
quicker, efficient and economic source of energy. With this in view, Petroleum Conservation
and Research Association (PCRA) was set up by the Government in 1978 with the specific mandate
to promote conservation of petroleum products in the major sectors of economy like transport,
industry, households and agriculture. The main programmes conducted for oil conservation are
as under:
(i) Energy Audits of oil consuming industries,
(ii) Fuel Oil Diagnostic Studies for consuming industries ,
(iii) Driver Training Programme for drivers of Road Transport Corporations and other
volunteers,
(iv) Model Depot Project, and
(v) Mass Awareness Programme through electronic and print media.
As regards to ban future trading in crude oil, Department of Consumer Affairs has informed
that there is no such proposal before the Government to ban future trading in crude oil, at
present.