MINISTER OF PETROLEUM AND NATURAL GAS (SHRI S. JAIPAL REDDY)
(a) to (d): A statement is laid on the Table of House.
Statement referred to in reply to parts (a) to (d) of Lok Sabha Starred
Question No. 272 asked by Shri Rudra Madhab Ray and Shri P. Viswanathan
to be answered on 30th August, 2012 regarding “Losses of OMCsâ€.
(a): The quarter wise details of profit / loss reported by the Public
Sector Oil Marketing Companies (OMCs) viz. Indian Oil Corporation Limited
(IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum
Corporation Limited (HPCL) since 2009-10 are as under:
Details of Profit/ (Losses) reported by OMCs since 2009-10
(Rs crore)
Period IOCL
BPCL HPCL
Total
1st Quarter 3,682.83 614.12 649.12 4,946.07 2nd Quarter 284.36 (-)158.77 (-)136.68 (-)11.09
2009-10 3rd Quarter 696.59 379.09 31.40 1,107.08 4th Quarter 5,556.77 703.18 757.53 7,017.48 Total 10,220.55 1,537.62 1,301.37 13,059.54 1st Quarter (-)3,388.39 (-)1,718.10 (-)1,884.29 (-)6,990.78 2nd Quarter 5,293.95 2,142.22 2,089.61 9,525.78
2010-11 3rd Quarter 1,634.76 187.38 211.03 2,033.17 4th Quarter 3,905.16 935.18 1,122.66 5,963.00 Total l7,445.48 1,546.68 1,539.01 10,531.17 1st Quarter (-)3,719.00 (-)2,562.00 (-)3,080.26 (-)9,361.26 2nd Quarter (-)7,485.55 (-)3,229.27 (-)3,364.48 (-)14,079.30
2011-12 3rd Quarter 2,488.44 3,139.60 2,725.18 8,353.22 4th Quarter 12,670.43 3,962.83 4,630.99 21,264.25 Total 3,954.32 1,311.16 911.43 6,176.91
2012-13 1st Quarter (-)22,450.95 (-)8,836.75 (-)9,248.80 (-)40,536.50
Source – published results of the OMCs
(b): The OMCs have adopted austerity measures in line with the guidelines issued by the
Government from time to time. As regards the facilities provided to the officers of the
OMCs, it is being governed by the guidelines issued by the Department of Public Enterprises.
(c) & (d): In the light of the recommendations made by the Expert Group set up to advise
on a viable and sustainable system of pricing of petroleum products under the Chairmanship of
Dr. Kirit S. Parikh, the price of Petrol has been made market-determined both at the Refinery
Gate and at the Retail Level with effect from 26th June, 2010. Since then, the OMCs take
appropriate decision on the pricing of Petrol in line with the international oil prices and
market conditions. Even after implementation of the market-determined pricing, OMCs have
been making revision in price of Petrol in a guarded manner, at times, absorbing a part of
under-recovery themselves. The details of revision of price of Petrol since 24.05.2012 are
as under:-
Revision on Petrol Prices since 24.05.2012
(Price in Rs/litre as per IOCL at Delhi)
S. No. Date Revised RSP# Increase/
Remarks (Rs/litre) Decrease
1 24.05.2012 73.18 7.54 Increase in RSP
2 03.06.2012 71.16 (-)2.02 Reduction in RSP
3 18.06.2012 70.24 (-)0.92 Rebate in VAT at Delhi
4 29.06.2012 67.78 (-)2.46 Reduction in RSP
5 24.07.2012 68.48 0.70 Increase in RSP
6 01.08.2012 68.46 (-)0.02 Revision in siding Shunting charges
Net increase since 01.04.12 2.82
# RSP- Retail Selling Price.
Inspite of these revisions, OMCs have incurred under-recovery of ` 2100 crore on sale
of Petrol during the first quarter ended June, 2012. IOCL has reported that under
recovery on sale of Petrol has gone from ` 1.37 per litre in the first fortnight of
August, 2012 to ` 3.85 per litre in the second fortnight effective from 16.8.2012.
In order to mitigate losses on sale of Petrol, OMCs had, inter alia, suggested to the
Government to either declare Petrol as a ‘regulated’ product temporarily and provide
cash compensation for the under-recovery or reduce the Excise Duty on Petrol from `
14.78 per litre by an amount equivalent to the under-recovery on Petrol. In order
to offset, the under recovery on Petrol, the Ministry of Petroleum & Natural Gas has
taken up the matter with the Ministry of Finance for bringing down the incidence of
Excide Duty.
