Description
PROJECT ON COMPETITION IN INDIAN PETROLEUM INDUSTRY
STATE OF COMPETITION IN
THE INDIAN PETROLEUM INDUSTRY
Final Report: January !" !!#
By Indicus Analytics Pvt. Ltd New Delhi For Co$petition Co$$i%%ion o& In'ia Ne( Del)i
Indicus Analytics
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CONTENTS I INTRODUCTION.....................................................................................................................................1
II REFINERY TECHNOLOGY AND PRODUCTS................................................................................3 III GLOBAL OIL INDUSTRY...................................................................................................................5 IV INDIAN OIL INDUSTRY......................................................................................................................9 V COMPETITION IN EXPLORATION................................................................................................14 VI COMPETITION IN USER INDUSTRIES.........................................................................................18 VII COMPETITION IN REFINING INDUSTRY.................................................................................20 VIII COMPETITION IN GAS INDUSTRY..........................................................................................21 IX CONCLUSION......................................................................................................................................22 DATA APPENDIX.......................................................................................................................................25 PETROLEUM STATISTICS.............................................................................................................................25
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Tea$ Me$*er% Ashok Desai Laveesh Bhandari Ramrao Mundhe Maj. General Bhu indra !adav
" ecial #hanks to E+pert% at t)e Co$petition Co$$i%%ion o& In'ia Payal Malik
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I
Intro'u,tion
#his a er is a$out the Indian etroleum re%inin& industry. But this industry is e'tremely o en( trade %lows are lar&e com ared to roduction. And there is considera$le overla $etween oil roduction and re%inin& internationally) and to some e'tent in India. "o we $e&in with a $rie% discussion o% the international etroleum industry and its com onents * re%inin& $ein& one o% them. Petroleum is e'tracted %rom under&round reserves( then it is cracked or +re%ined, into end roducts %or various uses. #he etroleum industry thus has two arts- an oil e' loration and roduction industry u stream and a re%inery industry downstream. Most oil roducers also own re%ineries. But the reverse is not true( a hi&h ro ortion o% oil is sold to re%inery com anies that do not roduce crude oil. "edimentary rocks in which hydrocar$ons are tra ed o%ten hold &as) sometimes in association with crude oil and sometimes alone. It consists mostly o% methane) which is li&hter than air and to'ic. It there%ore re.uires airti&ht tanks %or stora&e and similarly leak/ roo% i es or trucks %or trans ort) which raise its ca ital costs. Associated &as was %lared in early years o% the industry( it is still %lared at remote or minor wells where the cost o% its collection and trans ort would $e hi&h) or o%ten reinjected into the oil%ield to maintain ressure which %orces oil u to the sur%ace. But where the .uantities are lar&e enou&h) natural &as is mined and traded. It is mainly used as an industrial) domestic and vehicular %uel. Motor vehicles run almost e'clusively on etrol and hi&h/s eed diesel oil) $oth %uels derived %rom mineral oil * althou&h they can $e modi%ied to run on certain $io%uels. 0ehicles are so widely dis ersed that they re.uire an e'tensive distri$ution system %or these two re%inery roducts. As motor vehicle use has s read across the world) it has $rou&ht alon& with it etrol um s) lo&istics) stora&e and su ly o% %uels. #here is thus a third art o% the etroleum industry downstream %rom re%ineries which distri$utes the roducts. It is owned $y re%ineries in most countries. But this is not inevita$le. "ome countries have distri$ution chains that are inde endent o% roducers and re%iners( and in countries which do not have re%ineries) distri$ution is undertaken $y either local or %orei&n oil com anies. 1il has collected in ools and see s %or thousands o% years. #he 2hinese are recorded as havin& e'tracted oil %rom wells 344 %eet dee throu&h $am$oo i es in 567( they used it to eva orate $rine and make salt. American Indians used to ut it to medicinal uses. Persians) Macedonians and 8&y tians used tars to water roo% shi s. Ba$ylonians used as halt in the ei&hth century to construct the city9s walls) towers and roads. But the easily availa$le oil was not ut to any mass use $ecause the crude itsel% was not a &ood %uel( it &ave out much soot and smoke. A distillation rocess usin& a retort was invented $y Rha:es ;Muhammad i$n <akariya Ra:i= in Persia in the > th century( li.uid heated in it va ouri:ed) assed throu&h a curved s out and condensed in another container. #he rocess could $e used to make kerosene( $ut it was more o%ten used to make alcohol and essence o% %lowers %or er%ume. It was a $atch rocess) its %uel consum tion was hi&h) and it was not e.ually e%%icient at distillin& kerosene %rom all crudes. A more e%%icient and relia$le distillation rocess came out o% a series o% inventions a%ter ?36@. #he last invention was the invention o% oil %ractionation in ?3A6 $y Benjamin "illiman) a ro%essor o% science in !ale. It used a vertical column which se arated com onents more e%%iciently) and which could $e used continuously. 1il was %irst roduced in #itusville) Pennsylvania ;B"A= in ?3A> $y one 8dwin L Drake) who re%ined it into kerosene) which was then used as an illuminant. 8lectricity did not emer&e as an illuminant till the 8dison 8lectric Li&ht 2om any was %ounded in ?373. Cell into the D4 th century) kerosene) &as and electricity continued to com ete as illuminants. Chilst the use o% &as as an illuminant has virtually disa eared) a lar&e o ulation) es ecially in India) continues to use kerosene as illuminant.
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#he invention o% the motor car $y Earl Friedrich Ben: in ?33A created a market %or etrol) a new re%ined roduct ; etrol is called Ben:in in Germany) $ut is not named a%ter Earl Ben:=. In ?3>3) Rudol% Diesel invented an en&ine in which oil was i&nited $y com ression( the diesel en&ine he invented came to ower lar&er vehicles) rinci ally trucks and $uses. Diesel en&ines used a di%%erent %uel) which was named diesel oil. A%ter this) the roduction and use o% motor vehicles s read ra idly in the Bnited "tates) es ecially a%ter ?>43 when Genry Ford $e&an mass manu%acture o% his Model #( and etroleum and diesel oil $ecame the most im ortant re%ined roducts) %irst in the B" and ro&ressively across the world. Gowever) only a certain ro ortion o% crude oil can $e converted into motor %uels. #he demand %or kerosene) the ori&inal distillate e'tracted %rom crude oil) has &one down with the s read o% electricity. "o other re%ined roducts have $een develo ed) and non/vehicular uses develo ed %or them. "ome o% the roducts di%%er little %rom motor %uels( %or instance) na htha) e'tensively used to make nitro&enous %ertili:ers and chemicals) is little di%%erent %rom etrol( and jet %uel is very similar to kerosene. #hus) re%ineries %ind markets %or their roducts in many industries other than motor trans ort -Appen'i+.ta*le C/0. The Industry in India India im orts three/.uarters o% the crude it re%ines -Appen'i+.ta*le D10. It e' orts re%inery roducts -Appen'i+.ta*le E 0( its net e' orts are rou&hly ten er cent o% roduction. #he &overnment o erates an ela$orate set o% cross/su$sidies to insulate domestic %rom international rices( such cross/su$sidies have serious e%%ects on the %inances o% the Indian com anies -Appen'i+.ta*le I 0 involved) and in%luence com etition amon&st them. #he oil com anies) $oth u$lic and rivate) are so lar&e a art o% the economy that the cross/su$sidy re&ime cannot $e sustained in all circumstances( sooner or later) the &overnment has to $rin& domestic rices closer to international rices. Gence the state o% com etition in the international market and international rices are im ortant %or the domestic market. In "ection II) which %ollows) we &ive an introduction to re%inery technolo&y) roducts) and the markets they serve. In "ection III) we $rie%ly descri$e the &lo$al e' loration) roduction and re%inin& industries. In "ection I0) we descri$e the Indian market structure in terms o% the com anies o eratin& in it) their roducts and markets. In "ections 0) 0I) 0II and 0III) we outline the market structure in e' loration and roduction) user industries) re%inin& and &as res ectively. In "ection IH) we turn to the major $arriers to com etition and to the ste s that need to $e taken i% &reater com etition is to $e introduced in the domestic market %or re%ined roducts.
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II Re&inery Te,)nolo2y an' Pro'u,t%
#his section rovides a $rie% overview o% the technolo&y and roduction understandin& o% these issues is critical as it hel s understand industry structure. rocess. An
2rude oil is a li.uid mi'ture o% hydrocar$ons * chemical com ounds consistin& rou&hly o% si' arts o% car$on and one o% hydro&en) $oth o% which are %uels( it &enerally also carries small .uantities o% sul hur) salts) metals) o'y&en and nitro&en. It was %ormed %rom or&anic remains accumulated undersea and eventually tra ed in sedimentary rocks( these rocks are where crude oil e' loration is concentrated. Generally the oil is com ressed) and &ushes out i% a i e is ushed into an oil/$earin& tra . But as it is e'tracted) the ressure diminishes) and it is o%ten arti%icially rein%orced $y injection o% air or water into the reservoir to ush u the oil. 2rude oil contains hydrocar$ons that vary in their $oilin& oint( re%inin& is a rocess in which crude oil is heated in a vacuum until it eva orates and then allowed to rise u a column. Di%%erent hydrocar$ons li.ue%y at di%%erent tem eratures and can $e collected at various hei&hts in the distillation column. In the $asic re%inery rocess) crude is heated to @44I2 $y injection o% su erheated steam and um ed in at the $ottom o% a vertical distillation column. As the va our rises u the column) it cools. #he column has trays at various hei&hts with holes. As the va our cools) %ractions with di%%erent $oilin& oints li.ue%y) collect in the trays and are drained o%%( roducts with hi&h $oilin& oints rise to the to ) while roducts with low $oilin& oints collect on lower trays. #he rinci al roducts) with their a ro'imate $oilin& oints) are etroleum &as ;D4I2=) na htha ;64I2=) etrol ;74I2=) kerosene and jet %uel ;?D4I2=) diesel ;D44I2=) lu$ricant ;544I2=) and %urnace oil ;574I2=( solid etroleum coke collects at the $ottom a%ter the li.uid %ractions are removed. #he ro ortions in which these roducts come out vary to an e'tent with the crude( crudes are classi%ied as li&ht or heavy accordin& to the ro ortion o% li&ht roducts. But the $alance o% demand and su ly %or the roducts is such that the rices o% %urnace oil are much lower than those o% li&ht roducts such as etrol) kerosene and diesel oil. In Au&ust D443) international rices o% residual %uel oil ran&ed %rom JD.D> to JD.63 a &allon( the corres ondin& ran&e was JD.@3/5.4A %or etrol) J5.4@/J5.D> %or diesel oil) and J5.?3/J5.53 %or jet %uel. "o other technolo&ies are em loyed to crack) alter or recom$ine molecules and make li&hter hydrocar$ons %rom residual %uel oil. #he rinci al roducts o$tained %rom the rimary re%inin& and crackin& rocesses are -%ee Appen'i+ . ta*le 34 an' C1 &or pro'u,t.(i%e pro'u,tion an' ,on%u$ption0 Li5ue&ie' petroleu$ 2a% ;LPG=) mostly a com$ination o% $utane and ro ane. It is heavier than air) and li.ue%ies under ressure. It is used as a household cookin& %uel) re%ri&erant) and vehicular %uel( 6 million vehicles are estimated to $e owered $y LPG in the world. Petrol is used to %uel internal com$ustion en&ines) mainly vehicular. Its early use as a killer o% lice and their e&&s has com letely disa eared. Nap)t)a is used to make additives %or hi&h/octane etrol) and to make olymeric lastics and urea) a nitro&enous %ertili:er. A6iation tur*ine &uel ;A#F= is the %uel used in ro eller lanes. It is akin to etrol. 7ero%ene) also known as ara%%in) is used as an illuminant and cookin& %uel in India and other oor countries) and as a s ace heatin& %uel in industrial countries. Jet &uel) used in jet lanes) is closely akin to kerosene. Hi2).%pee' 'ie%el oil is used in en&ines runnin& at 7A4 revolutions er minute ;r m= or more. It is mostly used in diesel/ owered vehicles Li2)t 'ie%el oil is used in diesel en&ines runnin& at lower s eed * mainly irri&ation um s and &eneration sets.
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Furna,e oil is made $y dilutin& residual %uel oil %rom re%inin& with middle distillates such as diesel oil. It is used in $oilers) $unkers) heaters) %urnaces) or as %ertili:er %eedstock. Low/sul hur heavy stock ;L"G"= is a variant o% %urnace oil. Lu*ri,atin2 oil consists o% &reases and viscous oils used to lu$ricate movin& arts in industry) automo$iles) railway en&ines and carria&es and marine en&ines. Para&&in (a+ is used as an electrical insulator) %or heat stora&e and in thermostats. A%p)alt is a $lack thermo lastic roduct that is used to make roads and sometimes %or water roo%in&. It is similar to tar) which is made %rom coal. As halt is also %ound in natural %orm( it was used to water roo% 8&y tian mummies. Petroleu$ ,o8e is mostly used as %uel) $ut is also used to make electrodes and dry cell $atteries. "ome etrochemicals are roduced in lar&e enou&h $ulk to take a si&ni%icant ro ortion o% re%inery roducts- the world consumed 56A million tons o% hydrocar$ons in D446 to make 5?4 million tons o% etrochemicals. Most o% the hydrocar$ons are %irst turned into one o% three intermediates / ethylene) ro ylene and aromatics * $e%ore $ein& converted to other roducts. 1% the latter) lastics accounted %or DDA million tons) and %i$res %or 53 million tons( solvents) deter&ents and synthetic ru$$er accounted %or most o% the rest.
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III 9lo*al Oil In'u%try
In the early years o% the industry) oil or &as see ed out o% the earth in many laces( elsewhere it was discovered $y accident while drillin& %or water. But such easy discoveries are lon& &one. Bndiscovered oil is all under&round) and oil e' loration today uses considera$le instrumentation * &ravimeters) ma&netometers) seismic re%lectors and re%ractors * and strati&ra hy) which is essentially correlation o% availa$le &eolo&ical data. #he data o$tained are correlated to &uess the location o% rock %ormations and identi%y those that are most likely to contain hydrocar$ons. #hen ri&s are used to drill into those %ormations. Drillin& costs much more than &eolo&ical tests( so oil com anies invest heavily in &eolo&ical investi&ation. 1il roduction re.uires drillin& a well into land or sea$ed. Land usually $elon&s to someone( i% it is not rivately owned) it $elon&s to the &overnment. "imilarly) maritime countries claim ownershi o% the continental shelves alon& their coastlines. I% someone wants to e' lore %or oil) he has to &et ermission to drill. I% he %inds oil) he will normally want %irst ri&ht o% e' loitation. "o it is normal %or e' lorers to make an a&reement with the owner) called a concession) which lays down the ri&hts o% the concessionaire and the ayments he would make %or them. In the early years) when oil develo ments were small) it was &enerally enou&h to &et a concession %rom a rivate owner or a num$er o% nei&h$ours. In the B") there were lar&e unoccu ied areas where com anies could drill without any$ody9s ermission. But as oil is came to $e e'tracted %rom dee er %ormations) investment went u ) and e' loration assed into the hands o% com anies which could raise ca ital. Also) a lar&e area o% concession $ecame necessary to avoid dis utes with nei&h$ourin& concessionaires. "uch lar&e areas re.uired the intervention o% &overnments. In the early concessions) &overnments layed the role o% landlords) and &enerally levied a royalty er $arrel o% oil e'tracted. For instance) the "hah o% Persia &ave a concession in ?>4? to Cilliam D9Arcy) a rich 8n&lishman) to ros ect %or oil in most o% Iran %or @4 years) %or which he was romised KD4)444 in cash) KD4)444 in shares o% the oil com any and ?@ er cent o% ro%its. "tandard 1il o% 2ali%ornia ne&otiated a concession with the Ein& o% "audi Ara$ia in ?>55.
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Ta*le 1: Top t(enty ,ountrie% *y oil ,on%u$ption" !!:
9DP PPP JtrnD44A Con%n Output E+port% I$port% ?5.D 5.D A.6 D.? 4.? D.? ? D.5 4.6 ?.> 4.D D.D ?.? ?.@ 4.6 D.5 4.A 7.7 /:>: ?.D5 Re&inin2 ,apa,ity ?7 A.3 6.A D.5 A.6 D.A D D.@ ?.> D ?.A D.5 D.? ?.3 ?.6 ?.@ ?.? ?.D 4.> 4.7 3.5 =?># ?.?D Re%er6e% #rillion $arrels DD ?@ Ener2y inten%ity M$dLJtrn ?.A 4.> ?.5 ?.4 ?.D 4.7 ?.3 ?.3 ?.? ?.4 ?.A ?.4 5.4 4.> ?.? ?.> ?.A ?.A ?.3 ?.5 ?.5 1>@ 4.5@
Country
Million $arrels er day
USA ?5.3 D4.7 7.@ ? C)ina 7 @.A 5.@ 4.6 Japan 6.D A.@ 4.? 4.? 9er$any D.3 D.7 4.D Ru%%ia D.? D.A >.6 7 In'ia 5.? D.5 4.3 4.6 Cana'a ?.D D.? 5.? ?.@ Sout) 7orea ?.D D.? 4.@ 3ra;il ?.3 D ?.@ 4.5 Fran,e D D 4.7 4.A Me+i,o ?.5 ?.> 5.6 ?.3 Italy ?.3 ?.3 4.? 4.A Sau'i Ara*ia 4.@ ?.3 >.A 7.> Unite' 7in2'o$ D.? ?.3 D.? ?.A Spain ?.6 ?.@ 4.5 4.? Iran 4.3 ?.A 6 D.A In'one%ia 4.3 ?.D ?.? 4.A Net)erlan'% 4.@ 4.> 4.? ?.6 T)ailan' 4.A 4.> 4.D Au%tralia 4.7 4.> 4.A 4.? T)e re%t ?A.6 ?>.6 5D.? D4.5 <orl' =4> ? > ?!>4 /?>4 St' 'e6iationAMean ?.5D ?.6D ?.34 ?.3> Sources: Oil: NationMaster.com. GDP PPP: World Bank
76 @ ?7> ?D ?D D@5 A ?55 A
?.55
#hese concession a&reements &ave a relatively small share o% the ro%its to the &overnments o% oil/ roducin& countries. But over the years) they either took shares in the concessionaire com anies or nationali:ed them. By D447) 77 er cent o% oil roduction was in &overnments9 hands( their share o% reserves would $e even hi&her) since the industries o% countries with the lar&est reserves are all nationali:ed. #a$le ? &ives roduction) consum tion) trade and reserves o% the to D4 consumers o% oil. #he %i&ures are not entirely accurate) $ut they are &ood enou&h %or the $road conclusions we seek. #he D4 countries account %or three/.uarters o% &lo$al consum tion( the remainin& ?3@ countries account %or only a .uarter. #he B" accounts %or a .uarter and the ne't %ive countries %or the ne't .uarter. #hese twenty countries also account %or three/.uarters o% the world9s GDP ;at urchasin& ower arity( that is) calculated at the same rices %or all countries=. It would thus seem that income is a major determinant o% oil consum tion. It is) $ut oil intensity is e.ually im ortant. #he last column shows oil consum tion er unit o% GDP. It tends to $e hi&h in oil/ roducin& countries) es ecially i% they have e'treme climates like "audi Ara$ia) Iran and 2anada. It is low in develo in& countries like India and 2hina. Amon&st industrial countries) some like Britain) France and Germany have $rou&ht down oil intensity considera$ly. Many countries tried to increase ener&y e%%iciency a%ter the %irst oil crisis o% ?>75( some did so more e%%ectively than others. #he to D4 countries roduce three/%i%ths o% the world9s oil. #his is $ecause the $i&&est consumers include most o% the $i&&est roducers * "audi Ara$ia) Russia) the B") 2anada) Me'ico) Iran and Indonesia- oil roducers tend to consume relatively more oil. Naturally) they are oil e' orters as well. #hat is why the to D4 consumers account %or three/%i%ths o% the world9s oil e' orts.
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But $ein& the lar&est consumers) they account %or %ive/si'ths o% the world9s oil im orts. And they account %or seven/ei&hths o% the world9s re%inin& ca acity. 1il re%ineries are more o%ten sited close to consum tion centres( so consumin& countries have a lar&er share o% re%inin& ca acity than o% oil roduction. #he ratio o% standard deviation to mean con%irms these conclusions. Production and e' orts vary most across the D4 countries. 2onsum tion varies much less) and varia$ility o% im orts is even less( the varia$ility o% $oth is com ara$le to the varia$ility o% GDP at urchasin& ower arity. Re%inin& ca acity has the least varia$ility) and is most evenly s read across the countries. ;0aria$ility o% reserves is also low( $ut this is $ecause nine o% the D4 countries have reserves close to :ero.= Ta*le : Top t(enty ,ountrie% *y natural 2a% ,on%u$ption" !!=
Country <orl' Natural 9a% Pro'u,tion" Mo%t Re,ent Annual E%ti$ate%" !!= -Trillion ,u*i, &eet0 Output <a%te' ReinBe,te' Mar8ete' Dry 2a% I$port% E+port% 5.5 4.4 ?.? 4.4 4.A 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.@ 4.4 4.4 4.4 4.4 3.7 1/>@ ?>.6 D5.D 6.6 4.7 7.D 4.D 5.4 4.6 5.4 4.7 ?.7 D.? D.D 4.? D.7 ?.> ?.3 ?.? 4.> 4.4 5D.3 1!#>@ ?3.A D5.D 5.3 4.7 @.A 4.D D.3 4.6 D.@ 4.7 ?.7 D.? D.D 4.4 D.7 ?.7 ?.@ ?.? 4.> 4.4 54.A 1!/>! 6.D ?.3 4.D 5.5 4.5 5.? 4.7 D.7 4.4 ?.> 4.6 4.4 4.4 ?.3 4.> 4.4 4.? 4.5 4.5 ?.D >.5 @ >= 4.7 3.6 4.D 4.6 5.@ 4.4 4.6 4.4 4.4 4.4 4.4 4.? 4.6 4.4 ?.> 4.5 4.D 4.4 4.4 4.4 ?6.> @1>= Con%n D?.7 ?@.@ 5.3 5.A 5.5 5.D 5.D 5.4 D.@ D.@ D.D D.4 ?.3 ?.3 ?.7 ?.A ?.A ?.6 ?.D ?.D D6.3 1!/>/
Bnited "tates D5.A 4.? Russia D5.D 4.4 Iran @.4 4.6 Germany 4.7 4.4 2anada 7.3 4.? Ma an 4.D 4.4 Bnited Ein&dom 5.4 4.? Italy 4.6 4.4 "audi Ara$ia 5.4 4.4 Bkraine 4.7 4.4 Me'ico ?.3 4.? 2hina D.? 4.4 B:$ekistan D.D 4.4 France 4.? 4.4 Netherlands D.7 4.4 BA8 D.@ 4.4 Ar&entina ?.3 4.4 India ?.? 4.4 #hailand 4.> 4.4 " ain 4.4 4.4 All others 66.4 D.A <orl' Total 1 :>? @>/ Source: B" 8ner&y In%ormation Administration
#a$le D summari:es roduction) consum tion and trade in natural &as %or D44@. Incidentally) a $arrel o% oil has the ener&y e.uivalent o% @444 cu$ic %eet o% &as( so the D44@ &lo$al &as consum tion o% ?46.6 trillion c%t o% &as comes is e.uivalent to 67.7 million $arrels er day o% oil * more than hal% the oil consum tion &iven in #a$le ?. As will $e seen) D.7 er cent o% the &as was %lared or vented) and ??.? er cent was reinjected into oil%ields. #he remainin& ?4>.5 tc%t contained other &ases $esides methane) li.uid hydrocar$ons and water( its methane e.uivalent was ?46 tc%t. Gas roduction and consum tion show similar concentration to oil. 1ne major di%%erence is that Russia is the %oremost roducer) consumer and e' orter o% &as. Cest 8uro ean countries are lar&e im orters( they im ort &as %rom Norway and the Netherlands) which e'tract North "ea &as o%%shore) as well as %rom Russia. Corld &as reserves on ? Manuary D44A were ?34 trillion cu$ic meters or @544 trillion cu$ic %eet( 74 trcm or 5> er cent o% them were o%%shore. #wo/thirds o% them $elon&ed to three countries * Russia ;D@ er cent=) Iran ;?A er cent= and Natar ;?6 er cent=. A art %rom natural &as) there are estimated to $e ?44/D@4 trcm o% coal/$ed methane) 64D/66D trcm o% ti&ht &as ;&as tra ed in
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dense sands=) 6D/6A trcm o% shale &as and ?5)444/D6)444 trcm o% hydrates ;methane tra %ro:en water molecules=? .
ed in
#hese) in $rie%) are the roduction and market structures with which the Indian oil industry is necessarily connected $ecause o% its de endence on im orts o% crude as well as re%ined roducts. 1il roduction is e'tremely une.ually distri$uted. 1il im ortin& countries have to &et oil %rom roducers since the international wholesale market is not lar&e enou&h to su ly lar&e consumers. 1il roduction is e'tremely une.ually distri$uted) and oil e' orts even more so. #he only countries with si:ea$le sur luses o% oil are those in the Middle 8ast * "audi Ara$ia) Iran) Euwait) Bahrain) and when its oil roduction %acilities are restored) Ira. * and Russia. North "ea 1il) e'tracted $y Norway) Britain and Netherlands) is mostly consumed within Cestern 8uro e( and 2anadian and Me'ican oil &oes to the B". #here is no sin&le market in oil. #here are three ty es o% oil distri$ution arran&ements. First) there are oil markets in the B" and Cestern 8uro e where common crudes o% those re&ions are traded. Gere the ricin& is com etitive) althou&h some o% the su liers9 market share is lar&e. Ne't) considera$le .uantities o% oil are sold throu&h contracts o% varyin& len&ths. Prices would normally not vary in the li%e o% these contracts) $ut they would in the lon& run take market rices as the $enchmark. Many contracts rovide %or revision o% rices de endin& on a chan&e in international market conditions. Finally) a certain ro ortion o% oil is allocated $y &overnments at rices o% their choice( these rices may or may not $e ali&ned to international market rices. India) like all $i& oil consumers) has enou&h re%inin& ca acity -Appen'i+.ta*le 3/0. But since the out ut attern o% re%ineries seldom matches domestic consum tion atterns) there have to $e some e' orts and im orts o% re%ined roducts. As will $e e' lained later) olicy/induced distortions %orce e' ort o% some re%ined roducts %or which there is a market in India * even some that are im orted -Appen'i+. ta*le% D C E 0. And India has the choice o% im ortin& re%ined roducts instead o% crude. "o there are $oth im orts and e' orts o% re%ined roducts.
1
A !"ll" Sani" " #2$$6%& 'as "s" ("s) disc*(" i"s and + *ducti*n. Pan* a!a 2$$6. Institut , ancais" du P"t *l") R"uil-Mal!ais*n) , anc". www.ifp.com/content/download/5 !5 /"# $! /%ersion/$/file/&'P(Panorama! )!5( ReservesDecou%Prod(*+.pdf
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ID In'ian Oil In'u%try
As in the B") 2hina and Iran) oil see ed out o% the soil in India as well( British travelers in Assam re orted such ools %rom ?3DA onwards. 1nce %ractionation technolo&y was roved in the B") industrial re%inin& o% oil $ecame %easi$le. Assam Railways O #radin& 2om any Limited was re&istered in London in ?33? to e' loit Assam9s natural resources. It struck oil in e' loita$le volume near Di&$oi in ?33>( at that oint it trans%erred its oil interests to a se arate com any) Assam 1il 2om any. A12 $uilt a re%inery in Di&$oi in ?>4?. A12 was taken over in ?>?7 $y Burmah 1il 2om any) which later $ecame Burmah "hell and then "hell. 8' anded and moderni:ed a num$er o% times) the Di&$oi re%inery continues to %unction till today. In ?>53) A12 took a ros ectin& licence %or @)D>4 s.uare miles in Assam. it ceded the concession a%ter the Car started in ?>5>) and resumed it in ?>67. A12 struck oil in Naharkotia in ?>A5. By that time) however) the &overnment o% India had $ecome aranoid a$out %orei&n ownershi o% $usiness( there was a lon& stando%% $etween it and A12 over the e' loitation o% the new oil%ield. Finally in ?>A>) A12 and the &overnment set u 1il India Limited) a @7-55 joint venture) to e' loit the Naharkotiya oil%ield( in ?>@? it $ecame a A4-A4 joint venture. A art %rom the small re%inery in Di&$oi) India did not roduce re%inery roducts when it $ecame inde endent in ?>67( it de ended almost entirely on im orts) mostly %rom An&lo/Iranian 1il 2om any9s re%inery in A$adan. #hree com anies sold the roducts throu&h their distri$ution networks * Burmah "hell) "tandard 0acuum and 2alte' ;now mer&ed into "hell) 8''on and 2hevron res ectively=. Burmah "hell was the lar&est) with an almost A4 er cent share o% the market. In Decem$er ?>A5) the Indian &overnment entered a DA-7A joint venture with "tandard 0acuum %or survey o% ?4)444 s.uare miles in Cest Ben&al. #he com any did some &ravimetric and seismic surveys) and drilled seven holes. It %ound some &as in some which it considered non/ commercial( it did not %ind any oil. #he &eneral im ression was that "tandard 0acuum ut little e%%ort into ros ectin& in Cest Ben&al. #his could have $een due to the incentive structure. "tandard 0acuum had access to chea crude %rom the Gul%( i% it %ound oil in India) the &overnment would %orce it to e' loit it. Its cost was likely to $e hi&her) and the com any would either have earned lower ro%it mar&ins or the &overnment would have had to rotect domestic re%inin&( "tandard 0acuum would have had to ne&otiate the level o% rotection. #he ne&otiations $etween "tandard 0acuum and the &overnment on the re%inery threw u a lar&e num$er o% issues) many o% which are relevant to the olicy conte't today. D #he %ollowin& are im ortant. ?. D. 5. #he com any wanted a &uarantee a&ainst nationali:ation %or 54 years) later reduced to DA. It wanted %reedom to im ort crude. #he im lication was that it did not want to $e %orced to use domestic oil or oil that the &overnment ne&otiated access to. It wanted %reedom to distri$ute its re%inery roducts. It wanted to use its own distri$ution network to sell the roducts) and did not want to $e %orced to distri$ute throu&h other networks) &overnment9s or otherwise. Price %i'in& is anterior to distri$ution( the com any also did not want rice control. It would rice its re%ined roducts at landed cost o% im orts ;includin& duty=. Im ort arity would $e with Me'ican oil and roducts) not Middle 8astern. Im ort arity was understood to lace a ceilin& on rices.
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A d"tail"d i/ at0" +a tisan su!!a y */ t0" n"1*tiati*ns 2"t3""n t0" 1*(" n!"nt and t0" *il c*!+ani"s 4 + inci+ally Standa d 5acuu! 4 is 1i("n in 6 7 8aul ) K D Malviya and the Evolution of Indian Oil, Alli"d Pu2lis0" s) 9"l0i.
:
6.
It wanted %ree access to %orei&n e'chan&e %or all ractical ur oses * crude) %rei&ht) e.ui ment) services) dividend remittance) includin& crude and services $ou&ht %rom its %orei&n o erations * to $e valued at international rices. It wanted no im ort duty to $e char&ed on crude and on e.ui ment not roduced in India. #here was an im ort duty on diesel oil( whar%a&e rates too were such as to &ive some rotection. #he com any wanted that these levels o% rotection would not $e reduced. It wanted an im ort duty on etrol e.ual to the e'cise duty lus ?D Paise er im erial &allon. Im ort duties a lica$le to the com any should $e no lower than those a lica$le to its com etitors. #he tankers that $rou&ht in crude should $e allowed to $e used %or coastal distri$ution o% re%inery roducts. #here should $e no restrictions on local $orrowin&s %or e.ui ment) construction and inventories. Its ca ital investment would $e &iven ?4 calculation o% income ta'. er cent strai&ht/line de reciation in the
A.
@. 7. 3. >.
#he com any wanted e'em tion o% the Industrial Develo ment and Re&ulation Act o% ?>A?) which &ave the &overnment the authority to control industrial roduction) e' ansion and diversi%ication. #he &overnment a&reed( $ut "hell and 2alte' did not &et this assurance.
#he &overnment also wanted a num$er o% thin&s. ?. It wanted "tandard 0acuum to set u a local su$sidiary to $uild and run the re%iner. "tandard 0acuum was a&ainst it %or three reasons- ;?= #he su$sidiary would $e su$ject to income ta'( ;D= it would have to ay sales ta' on whatever re%ined roducts it sold to the distri$ution com any( and ;5= i% the &overnment laced controls on dividend ayments) the su$sidiary would $e su$jected to them. But eventually it did a&ree to set u a su$sidiary. #he &overnment wanted the local su$sidiary to issue shares to local shareholders( it issued a .uarter o% its ca ital o% J@ million to them in re%erence shares. #he other two com anies issued non/votin& shares to local shareholders. D. "hould India discover oil) the &overnment wanted the 2om any to romise to use it in re%erence to im orts. #he com any a&reed( rice was uns eci%ied. 5. #he &overnment reserved the ri&ht to im ose and vary e'cise duties) $ut romised to maintain the e'istin& di%%erentials $etween e'cise and im ort duties. In other words) i% it im osed or increased an e'cise duty) it would increase im ort duty $y at least that much. 6. #he &overnment wanted the com any to train and em loy Indians. A. #he &overnment had a&reed at inde endence to continue oolin& dollars with the 2ommonwealth( at the same time) the British &overnment owed it a lar&e de$t) termed sterlin& reserves) %or su lies durin& the Car. "o it wanted "tandard 0acuum to $uy crude and other im orta$les %rom the "terlin& Area as %ar as ossi$le. #he com any a&reed) since AI12) the com any that roduced oil in Iran and Euwait) was British and would acce t Pounds. @. In the event o% the &overnment ac.uirin& tankers) it wanted the com any to use them in re%erence to other tankers. #he com any a&reed) su$ject to the use o% its own tankers and rior contractual commitments. 7. #he &overnment wanted the com any to &ive riority to local urchases over im orts( the com any a&reed. #he ne&otiations continued %or three years) $ut no a&reement emer&ed. #he oil com anies revaricated. #he &overnment sus ected that the oil com anies were ha y with the im ort o% re%ined roducts %rom A$adan re%inery) which they sold in India at certain and hi&h ro%its. But a%ter Iran nationali:ed the A$adan re%inery in May ?>A?) India looked a sa%er country to o erate
1$
in. In Novem$er) "tandard 0acuum si&ned an a&reement with the &overnment to set u a re%inery. Burmah "hell and 2alte' %ollowed in the ne't two years. 8sso9s DA)444 $ d re%inery was inau&urated in Bom$ay in ?>A6) Burmah 1il 2om any9s 54)444 $ d re%inery went onstream in Bom$ay in ?>AA) and 2alte'9s ?4)444 $ d re%inery went u in 0i:a&a atam in ?>A7. #he &overnment was %rustrated with the e' erience o% ne&otiations with the three oil com anies. In the ?>A4s) the &overnment took a num$er o% ste s to reduce de endence on %orei&n oil com anies. In ?>A@) it set u 1il and Natural Gas 2ommission to e' lore %or oil) and $rou&ht in "oviet and Rumanian ri&s and crews to ros ect %or oil. #he two areas chosen were the 2am$ay area in Gujarat and the Mawala uri/Manaur area in what is now Gimachal Pradesh. #he "oviet crew considered Gujarat more romisin&) and drilled there %irst. #he %irst well was s udded on DA Muly ?>A3( on D6 "e tem$er it struck oil under ?A4 atm ressure at 7444 %eet. Further e' loratory drillin& led to the discovery o% Ankleshwar and Ealol oil%ields in ?>@4) and su&&ested that the oil/ $earin& strata e'tended o%%shore to what came to $e known as Bom$ay Gi&h. 1il %rom this area was the %oundation o% 1NG29s emer&ence as an oil roducer. Gas too was %ound in and o%% Gujarat) $oth associated and non/associated. In ?>36) the &overnment se arated 1NG29s &as $usiness and &ave it to a se arate su$sidiary) Gas Authority o% India Limited ;GAIL=. GAIL $uilt a i eline %rom Ga:ira on the Gujarat coast to Delhi) and su lied &as to &overnment/owned ower stations and %ertili:er lants on the way. It also set u joint ventures with &overnment oil com anies and state &overnments to su ly &as to Bom$ay and Delhi %or trans ort and domestic %uel) and to Andhra Pradesh %or trans ort. In ?>37 it set u Petronet) a joint venture with three other &overnment oil com anies) to im ort LNG %rom Natar. Pricin& and distri$ution o% u$lic sector &as are entirely decided $y the &overnment( there is no element o% market in this area.5 #he "oviet surveys had shown the oil/$earin& structures o% Gujarat e'tendin& into the sea in ?>@6/@7) $ut the "oviets did not have the technolo&y %or o%%shore e' loration or roduction. In ?>76) a Ma anese survey shi leased $y 1NG2 discovered the roli%ic Bom$ay Gi&h o%%shore %ield. It has $een the mainstay o% 1NG29s $usiness since then. 1nce oil was discovered in Gujarat) the &overnment had to think a$out how to e' loit it. In ?>A3) it set u Indian Re%ineries to set u re%ineries. In ?>A>) it set u Indian 1il 2om any to undertake distri$ution. #he two were later mer&ed into Indian 1il 2or oration. I12 was &iven a mono oly o% im orts o% re%inery roducts( with that) it soon overtook the three %orei&n com anies in distri$ution. #hus the %oundations o% the &overnment/owned oil industry were in lace $y ?>@?. A Dmt a re%inery to rocess Gujarat crude was $uilt with "oviet hel in Eoyali) Gujarat in ?>@@. But Gujarat crude could not meet the &rowin& national demand. "o in the ?>@4s) the &overnment took to $uildin& coastal re%ineries in joint ventures with %orei&n com anies. #he D.A mt a 2ochin re%inery came u in ?>@@ with investment %rom Philli s Petroleum) the D.A mt a Madras re%inery went on/stream in ?>@> with artici ation %rom AM121 and National Iranian 1il 2om any) and the lu$ricants lant o% Lu$ri
l India came u in Bom$ay in ?>@> with artici ation o% 8sso. 6 In ?>@4) B" President Dwi&ht 8isenhower introduced oil im ort .uotas %avourin& Me'ico and 2anada and discriminatin& a&ainst Middle 8astern roducers and 0ene:uela. #his u set the latter. In "e tem$er ?>@4) Ira.) Iran) "audi Ara$ia) Euwait and 0ene:uela &ot toðer to +coordinate, olicies and %ormed the 1r&ani:ation o% Petroleum 8' ortin& 2ountries. #he or&ani:ation was just a talkin& clu$ %or ten years. But in ?>74) 1P82 resolved to raise its mem$ers9 share o% oil revenue to AA er cent) and $e&an ne&otiations with oil com anies to e%%ect the increase. #here %ollowed a s ate o% measures $y which Middle 8astern oil roducin& countries nationali:ed or im osed revenue shares on oil roducin& com anies) or cancelled concessions. 1il concessions were nationali:ed $y Al&eria in ?>7?) Ira. in ?>7D and Euwait in ?>7@/77. Li$ya nationali:ed a num$er o% oil%ields held $y %orei&n com anies $etween ?>7? and ?>7@) and took an 3A er cent share onshore and an 3? er cent share in the oil%ields o% others.
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C/ Mi;" <ac;s*n #2$$5%& 7atu al 1as s"ct* "/* ! in India& cas" study */ a 0y2 id !a ;"t d"si1n. Stan/* d P *1 a! *n En" 1y and Sustaina2l" 9"("l*+!"nt. =* ;in1 Pa+" 43) <uly. 4 C S 5"n;ata atna! and Anil 5" !a) Challenge of Change, Alli"d Pu2lis0" s) 9"l0i 1::7.
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;Iran had nationali:ed the British/owned An&lo/Iranian 1il 2om any in March ?>A?.= #he "audi Ein& threatened Ara$ian American 1il 2om any ;Aramco= with nationali:ation with ?>A4 and &ot a hal%/share in ro%its. Ge ac.uired a DA er cent share in Aramco in ?>75) increased it to @4 er cent in ?>76) and took %ull ownershi o% the com any in ?>34. Euwait nationali:ed its oil industry in ?>7A) Bahrain took a majority share in its concessionaire oil com any in ?>34. A%ter the ?>@7 war $etween Israel and Palestine) Ara$ mem$ers o% 1P82 %ormed 1r&ani:ation o% Ara$ Petroleum 8' ortin& 2ountries. Israel de%eated 8&y t and "yria in the !om Ei ur war in ?>75. 8nra&ed) 1P82 raised the rice o% its crude %rom J5 to J?D a $arrel) and made it e%%ective $y cuttin& su ly. A%ter this) oil roducin& countries reali:ed that they could raise their revenue $y raisin& the rice o% their crude. "o they started increasin& rices without coordination. Chile the nationali:ations o% the ?>74s did not immediately disru t the relationshi s $etween oil roducin& countries and their licensee %orei&n com anies) they introduced e'treme uncertainty in the com anies9 $usiness environment. #heir attem ts to co e with this uncertainty chan&ed the world oil industry in three major ways. ?. #he com anies $e&an to e' lore %or oil in more di%%icult environments such as the North "ea) Gul% o% Me'ico) and the 2as ian "ea. 8' loration in these %ields was more e' ensive. "o smaller com anies %ailed or were $ou&ht u ( the industry &ot more concentrated. #he &overnments o% the B" and Britain did not control oil roduced in their jurisdictions in the way the Middle 8astern oil roducers did. "o oil roduced in #e'as) Gul% o% Me'ico and the North "ea $e&an to $e traded on commodity markets. For the %irst time) an o en market in crude emer&ed. Nuotations %or crude such as Brent #ill the ?>74s) re%ineries were tailored to a sin&le crude source) and &enerally roduced a limited set o% roducts. #he uncertainty o% crude su ly led re%iners to desi&n or modi%y re%ineries to take a $roader variety o% crudes and make a &reater ran&e o% roducts. Not all re%ineries did( re%ineries are .uite dura$le) and many re%ineries remained unchan&ed. Many closed down. But catalytic crackin& technolo&y develo ed to make re%inin& more %le'i$le.A
D.
5.
As oil roducin& countries increased their share o% ro%its and oil at the e' ense o% %orei&n oil com anies) the oil su lies they controlled went u and those o% oil com anies went down. In the circumstances) the main reason %or havin& %orei&n oil com anies o erate re%ineries in India * namely) their access to crude * disa eared. In ?>7@) India nationali:ed the three re%ineries owned $y "hell) 2alte' and 8sso. In ?>3?) the &overnment $ou&ht out Burmah 1il9s A4 er cent stake in Assam 1il 2om any. Cith the nationali:ations) the entire Indian oil industry assed into &overnment hands) and came to $e run as a art o% the &overnment. In ?>77) the &overnment introduced an Administered Price Mechanism) to $e o erated $y an 1il 2oordinatin& 2ommittee. #he ministry o% etroleum %i'ed so/called retention rices desi&ned to &ive oil roducers ?A er cent and re%iners ?D er cent on their net worth. And it set administered rices at which roducts were sold to consumers. #he di%%erence $etween the revenue and dues o% an oil com any went its account with 122. "o overall) the rice level was cost/ lus( $ut the &overnment could cross/su$sidi:e individual roducts at will. It was the oil com anies9 ractice to construct their own etrol um s and &ive them to dealers to run. Bnder the rivate com anies) dealershi s were &iven to trusted associates) and they $ecame a art o% the com anies. A%ter nationali:ation) the &overnment decided to set u a %airer system. In ?>35 it set u %our 1il "election Boards( each $oard had a retired jud&e and one other mem$er. An "2L"# mem$er was added in ?>>5. 1il um s made &ood ro%its with little investment on the art o% the dealer and at low risk. "o many more eo le wanted um s than could &et them) and recommendations and corru tion were ram ant in their allocation. In Manuary ?>>@) a PIL led to a court en.uiry) which revealed that the ersonal assistant o% "atish "harma)
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<" *!" 9a(is) The Changing World of Oil: An Analysis of Corporate Change and Adaptation. As01at") L*nd*n) ++ 1-1$.
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the etroleum minister) &ot oil com anies to &ive um s to relatives and %riends o% oliticians) and char&ed others money. #he same scandal continued under the ensuin& BMP &overnment) and $lew u in D44D( Prime Minister 0aj ayee cancelled all the 53A4 allotments made in the revious two years. #here has $een no u$lic scandal since then) $ut that does not necessarily mean that the system works any $etter now.
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D
Co$petition in E+ploration
From ?>7> onwards) the ministry o% Petroleum $e&an to invite international $ids %or e' loration and develo ment %rom time to time. Nine rounds o% $iddin& were held till ?>>7( 5D $locks were awarded %or e' loration and 54 %or develo ment. In ?>>7 they roduced 5 mt a o% crude and 7 mcmd o% &as. But since re%inin& and distri$ution were &overnment mono olies ; Appen'i+.ta*le 310) the licensees had to sell their oil and &as to the &overnment. Ne&otiations with the &overnment were rotracted and involved each time. "o the rounds attracted little international interest. In the meanwhile) the &overnment mono olies could not increase roduction and re%inin& ca acity to kee u with demand ;Appen'i+.ta*le A 0. Between ?>3A/3@ and ?>>A/>@) the im ort ratio went u %rom 5? to 66 er cent %or crude and %rom 7 to D7 er cent %or re%ined roducts. #he olicy o% &overnment ownershi and control o% oil was a art o% a socialist a roach which a lied to all economic olicies. #hese olicies $ecame discredited when a serious $alance o% ayments ro$lem arose in ?>3>/>?( a new &overnment elected in ?>>? overhauled many o% the olicies. It a ointed two committees in ?>>6/>A- one under the chairmanshi o% B "underarajan was asked to e'amine re lacin& administered $y market/determined rices) and a strate&ic lannin& &rou on restructurin& o% the oil industry ;R Grou = was asked to look at the structure and or&ani:ation o% the industry. #he story o% which o% their recommendations in%luenced olicy and how %ar is convoluted( $ut the &overnment made the %ollowin& major olicy chan&es.
Fi& ? 1il out ut and im orts ?34 ?@4 ?64 ?D4 Million tons ?44 34 @4 64 D4 4 ?>7D/75 ?>7@/77 ?>34/3? ?>36/3A ?>33/3> ?>>D/>5 ?>>@/>7 D444/4? D446/4A 2rude out ut 2rude im orts Product out ut Product im orts
#he &overnment announced a New 8' loration Licensin& Policy in ?>>7) which di%%ered %rom the old one in the %ollowin& res ects.@ ? D Bidders were to com ete on cost recovery * they could ask %or u to ?44 er cent * and on their share o% ro%it etroleum. #hey were %ree to sell their share o% the oil to anyone within the country.
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R 8 7a an1) A d0"ndu S"n and L""la S i(asta(a) >ac;1 *und +a+" & Issu"s in d" "1ulati*n */ *il and 1as. In L""la S i(asta(a and S 8 Sa ;a ) Transition to a i!erali"ed Environ#ent: E$perien%es and issues in i!erali"ation, T" i P "ss 1::
++ 411-426.
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2onditions re&ardin& minimum e' enditure) re.uired artnershi with &overnment oil com anies) and si&nature) discovery and roduction $onuses were scra ed. #a' rovisions were de%ined) and their sta$ility romised. #here would $e a 7/ year income ta' holiday) e'em tion %rom customs duty on e' loration and drillin& e.ui ment) royalty was %i'ed at ?4 er cent e'ce t %or onshore crude which would ay ?D.A er cent) A er cent royalty on discoveries in water dee er than 644 meters) and develo ment e' enditure could $e amorti:ed over ?4 years. #he licence could $e assi&ned to third arties under conditions. A 2onciliation and Ar$itration Act assed in ?>>@) $ased on the model set $y Bnited Nations 2ommission on International #rade Law) would a ly to dis utes. Bidders were re.uired to &ive the Directorate o% Gydrocar$ons) which was set u in ?>>5) the results o% their surveys( in case they a$andoned the concession) the results would $ecome availa$le to su$se.uent $idders.
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A @
7
Bnder the New 8' loration Licensin& Policy) si' rounds were held and ?@D roduction/sharin& licences were &iven till ? A ril D447) a&ainst D3 $e%ore the introduction o% N8LP. 1% the licences) 77 er cent were o%%shore) and A5 er cent were to &overnment com anies. #he sedimentary area e' lored went u %rom A4 er cent in ?>>A/>@ to 3A er cent in D44@/47 o% the total 5.?6 s.uare kilometers ;?.7> million onshore and u to 644 meters o%%shore) ?.5A million dee /water $eyond 644 meters=. Cell e' lored area went u %rom ?A to D4 er cent) oorly e' lored area %rom ?7 to D? er cent) and area $ein& e' lored %rom ?3 to 66 er cent. #hese %i&ures su&&est that many licensees were sittin& on concessions $ecause they did not see a satis%actory ath to ro%ita$le e' loitation o% discoveries) or were ne&otiatin& such a ath. A seventh round o% N8LP was o ened on ? A ril D443. In Muly) si' multinational com anies ;2hevron and 2onoco/Phili s o% the B") BritainPs BG ;British Gas= and BP ;British Petroleum=) 2anadaPs Niko and An&lo/Dutch "hell= wrote to the &overnment to say that they would not $id i% the re&ulatory %ramework remained uncertain and the &overnment did not adhere to contractual arran&ements. Instances o% such were ;?= the 8nron a%%air) in which Maharashtra &overnment rene&ed on a contractual o$li&ation to $uy electricity at a %i'ed rice ;it was saved %rom liti&ation $y 8nron9s li.uidation on account o% %raud committed $y the com any in its home country) B"=) ;D= the &overnment9s takin& away the contractual ri&ht o% the owners o% the Panna/Mukta %ields * Reliance) British Gas and 1NG2 * to sell &as) and %orcin& them to sell it to GAIL at a rice o% its choosin& to GAIL ;the e' loration contracts em$odied %reedom o% sale and ricin&=) and ;5= DGG9s rene&otiation o% conditions em$odied in the model roduction sharin& contracts issued at the time o% announcement o% earlier rounds a%ter $idders had invested money and %ound oil or &as. #he com anies were also o% the view that DGG) which was su osed to $e a re&ulator) acted more like an arm o% the &overnment. #he &overnment did not res ond to the si' com anies9 concerns( conse.uently) they did not take art in the $ids. In the event) o% the A7 $locks on o%%er) ?D received no $ids) and ?> received only one $id. 1% the 6A winnin& $ids) one was rejected $y 2a$inet 2ommittee on 8conomic A%%airs) resultin& in 66 roduction sharin& contracts. 1NG2 and its associates &ot D4 concessions. #hus) the round con%irmed a decline in interest amon&st international com anies) es ecially e' erienced ones. #here is a more &eneral disincentive to $iddin& in the %act that the $idders have to sell their roduction in India) which remains a market dominated $y &overnment com anies( it is thus im ossi$le to $e sure that the concessionaire would &et an internationally com ara$le rice %or his out ut. #his is articularly o$vious in the case o% 2airn 8ner&y) which $ou&ht a $lock in Rajasthan %rom "hell in D44D and soon struck oil. #he %ind in Barmer was %ar %rom the sea. It could $e sold to Indian 1il 2oor oration) $ut ne&otiations have not $orne %ruit till now. #he crude is wa'y) and di%%icult to trans ort. 2airn has $een drillin& more e' loration wells and raisin& its estimate o% reserves. Now it is lannin& to lay a heated i eline to "alaya and e' ort the crude.
15
Ta*le : Oil an' 9a% Re%er6e% on 1%t April !!:
;Mtoe=
1il Gas Oil in pla,e 1il Gas Ulti$ate re%er6e%
ON9C 6@45 ?3D4 =/ @ ?5?5 >3D #4
OIL 3?A D>4 11!4 D65 ?A? @#/
Ot)er% @D> 353 1/=: ?7D A?? =?@
Total @467 D>63 ?##4 ?7D7 ?@6A @@:
Source: Directorate o% Gydrocar$ons
It is also ro$a$ly true o% Reliance) which %irst struck oil in Erishna/Godavari $asin o%%shore) and later &as as well. In D44@) Niko Resources whom Reliance had called in as consultant estimated &as reserves at ? trillion c$m. Reliance tried to sell the &as to ower utilities on the south and east coast) $ut %ailed to reach a&reement over the rice. #he ower utilities are owned $y state &overnments and make heavy losses. "o their a$ility to ay is in dou$t. #hus) rivate entry was allowed in oil e' loration and roduction in the ?>34s) and rivate %irms have discovered su$stantial oil and &as resources. But none has used them to enter domestic re%inin& and distri$ution. #his is $ecause dere&ulation o% the downstream industries has not ke t ace with that o% e' loration. 8' loration and roduction costs vary enormously accordin& to the location and de th o% hydrocar$ons and the si:e o% reserves. #here is a su&&estion that the a$sence o% com etition makes it ossi$le %or the oil concessionaires to take $ri$es %rom su liers o% e.ui ment and services in return o% over ayments and. to overestimate investment costs. #he chie% sa%e&uard a&ainst this ossi$ility is #he Directorate o% Gydrocar$ons) whose $lock mana&ement committee a roves all %ield develo ment lans. Chen it awards 8OP contracts) it looks at $oth costs and at the technolo&ical ca acity o% the a licant and his a$ility and willin&ness to save time) do a thorou&h e' loration and $rin& reserves into roduction. Besides its own e' ertise) its com arison o% com etin& $ids would hel it make a jud&ment on individual ro osals. #he e' ertise it ac.uires in evaluatin& $ids should &ive it ca acity to su ervise P"Bs9 activities also. It is authori:ed to hire outside e' erts and consultants when necessary. A sus icion that 1NG29s costs had $een added arose in D44@. In A ril D447) the alle&ation that Reliance Industries added costs was made $y the 2ommunist Party o% India ;Mar'ist=. 1NG2 ointed out that DeGolyer and McNau&hton) an outside consultant) did a third/ arty audit o% all its rojects. Reliance &ot a third/ arty audit done $y Ga%ney) 2line and Associates when the ori&inal discoveries were made) $ut was asked to &et a new audit done. #here are two other authorities that check the ro osed costs o% u$lic enter rises. #hey would $e a roved $y the arent ministry. It does not have the e' ertise to make an in%ormed e'amination( $ut that does not revent it %rom e'aminin& the costs. It is also within its urview to take the hel o% international e' erts. #he other is the 2om troller and Auditor General. Ge only makes an e' ost e'amination lon& a%ter the costs are incurred. Ge re orts to Parliament) which can make the &overnment take action on his re ort. Parliament committees o$tain a re ly to 2AG9s %indin&s %rom the &overnment) $ut there is no %urther action. #hus the sa%e&uards within the &overnment a&ainst overstatement o% costs are not very e%%ective. Chat is crucial here is that there should $e multi le com etitors %or concessions. #his re.uires e' ertise in %ormulatin& invitations %or e' loration contracts. From the %act that most e' loration contracts have &one to a hand%ul o% Indian com anies * mostly &overnment) some rivate * it can $e in%erred that there is little com etition %or them. #he reasons are also clear- that the &overnment restricts the discoverer9s ri&ht to sell any oil or &as he %inds in the world market) and that the dominance o% u$lic sector undertakin&s in the domestic re%inin& industry makes it
16
im ossi$le %or a discoverer to &et a %air market rice %or his oil. Gence i% there is addin& o% costs) it is due to the restraints on com etition laced $y the &overnment o% India.
17
DI Co$petition in u%er In'u%trie%
A major entry $arrier into oil re%inin& and &as is lack o% com etition in major markets %or re%ined roducts. Government dominance o% user industries and the losses it %orces them to make limit their ca acity to ay internationally com ara$le rices. "ome o% the user %irms also su%%er %rom endemic li.uidity ro$lems on account o% their oor ro%ita$ility) and delay ayments %or %eedstock. #wo such industries are im ortant- electricity) which in other countries is an im ortant market %or &as and %urnace oil) and %ertili:er) whose re%erred %eedstocks are &as and na htha. 1verstatement o% costs is not very e%%ective. #he electricity industry is dominated $y electricity $oards) which are essentially de artments o% state &overnments and have no o erational %reedom. #he rices they char&e are decided $y the &overnments) and are %i'ed at unremunerative levels. As a result) they de end %or investment %unds on state &overnments) which are themselves in no &reat %inancial sha e. 1win& to their un ro%ita$ility) they are o%ten short o% li.uidity and delay ayin& su liers o% %uel. #ill D446) they had run u enormous de$ts to coal and oil com anies. #hen the central &overnment %orced state &overnments to settle the de$ts as art o% more &eneral %inancial stren&thenin&. #he centre has the ower and in%luence to %orce state &overnments to ay. Private com anies would not $e a$le to do so. Gence the electricity $oards remain un romisin& customers %or &as or %urnace oil roduced $y rivate com anies. #he centre tried to $reak this im asse $y assin& the Re&ulatory 2ommissions Act in ?>>3. It a ointed a 2entral 8lectricity Re&ulatory 2ommission and ersuaded a num$er o% states to set u then own 8R2s. It also assed a new 8lectricity Act in D44D which envisa&ed introduction o% com etition %rom the rivate sector. Bnder its ersuasion) a num$er o% states cor orati:ed their electricity $oards and se arated &eneration and distri$ution. But des ite all this activity) electricity ricin& ractices did not chan&e. 8lectricity $oards continued to $e %inancially weak and hence oor customers %or hydrocar$on roducts. As lon& as they remain una$le or unwillin& to ay) enter rises o% the central &overnment) in &as) oil and electricity) will have an advanta&e in collectin& their dues %rom state electricity $oards as a&ainst any rivate com etitors that may come u . #he %ertili:er industry roduces nitro&enous) hos hatic) com ound and mi'ed %ertili:ers. 1% these) only nitro&enous %ertili:ers re.uire hydrocar$on %eedstocks( the normal %eedstocks are &as and na htha) which are %irst converted to ammonia and then into its com ounds. Phos hatic and com le' %ertili:ers were decontrolled in ?>>D) and nitro&enous %ertili:ers with low nitro&en content in ?>>6. But urea) which constitutes 3A er cent o% nitro&enous %ertili:er consum tion) remains under control. It is administered $y the Fertili:er Industry 2oordination 2ommittee) which is constituted entirely o% central &overnment secretaries e'ce t %or two re resentatives o% rivate lants. FI22 o erates a retention rice scheme. It collects out ut and cost %i&ures %rom all lants) adds ?D er cent return on ca ital) and there$y arrives at the total reali:ation re.uired. It divides the reali:ation $y the nitro&en out ut to &et nitro&en rice) which is then used to derive the rices o% various %ertili:ers. #he di%%erence $etween the rices and the costs is &iven to lants as su$sidy or taken away as ta'. A similar e'ercise is done to calculate total trans ort costs to the %armer) which are then so distri$uted $etween lants that %arm &ate rice o% urea is the same across the country. Chile in ut costs rose) the ministry o% %ertili:ers has hesitated to raise rices. #he result is that it is ayin& an enormous %ertili:er su$sidy. #o kee the su$sidy down) it has endeavoured to kee in ut rices as low as ossi$le. #his is one reason why the &overnment has tried to commandeer &as su lies %rom rivate roducers and rene&ed on the %reedom o% ricin& romised to them. #he domination o% the electricity and the %ertili:er industries $y the central and state &overnments) the losses they make and the conse.uent ressure to kee in ut rices low make the two industries unattractive as customers. #his is not so material to u$lic enter rises whose losses are $orne $y the &overnment) $ut their a$ility to $ear losses &ives them an advanta&e a&ainst
1.
ower lants) and discoura&es rivate investment in hydrocar$ons. Bnless electricity and %ertili:er markets are decontrolled) this handica o% rivate hydrocar$on %irms cannot $e removed.
1:
DII Co$petition in Re&inin2 In'u%try
Re%inery licences were &iven to the Birla &rou ;jointly with Gindustan Petroleum 2or oration) a su$sidiary o% I12= in ?>33) the 8ssar &rou in ?>>5) and Reliance Industries in ?>>@. #he Birlas9 Man&alore re%inery was ready $y ?>>>( it could not $e started $ecause GP2) whom the Birla &rou had taken in as artner %or its access to market) re%used to li%t the roducts. Finally the Birla &rou sold o%% its 57.53 er cent stake to 1NG2 in D445. #he %irst hase o% the Reliance re%inery in Mamna&ar was ready in ?>>>. Althou&h Reliance &ot a licence %or etrol um s in D44D) it has sold only a small ro ortion o% its etrol and diesel out ut throu&h um s( it has e' orted the $ulk. In D447) it sou&ht and &ot ?44Q 81B status. It &ave Reliance duty/%ree access to crude rovided it $alanced its total im orts and e' orts. #he Ruias9 0adinar re%inery went onstream in Novem$er D44@. #he delays were artly due to their le&endary lack o% %inance( $ut they were also not in a hurry $ecause they could not work out a %easi$le marketin& strate&y. Distri$ution has handica ed &rowth o% rivate re%inin&) and hence emer&ence o% com etition. 1n ? A ril D44D) the &overnment announced the a$olition o% the Administered Price Mechanism and o% the 1il 2oordination 2ommittee which administered the rice controls. It introduced direct su$sidies on kerosene and LPG -Appen'i+.ta*le H10) and raised ta'es on etrol and domestic crude -Appen'i+.ta*le 9:0. #he etroleum ministry issued retail distri$ution licences to 1NG2) GAIL) 1IL) Reliance Industries) Man&alore Re%ineries) 8ssar 1il and 2airn 8ner&y. 1% the licensees) only Reliance and 8ssar o ened a si&ni%icant num$er o% um s -Appen'i+.ta*le F@0> Reliance set u um s which were sho in& centres at the same time. 1n the hi&hways) they also o%%ered %ood) accommodation and $aths to truck drivers. #hey sold 6?4 kiloliters a month on the avera&e in D44A/4@) a&ainst u$lic sector outlets which sold ?64 kilolitres. "o althou&h they had only ?65D outlets out o% the total 54)444) their share o% retail sales was close to ?6 er cent -Appen'i+.ta*le F10. #hen) on D7 March D447) Reliance a lied %or the status o% a ?44Q e' ort/oriented unit( it &ot that status in Fe$ruary D443. In D447/43) its e' orts came to @4 er cent o% its sales. 1n D6 March D443) Reliance announced that it was closin& down all its etrol um s. #he reason was that the &overnment was su$sidi:in& etrol and diesel sold out o% its com anies9 um s) $ut did not &ive the su$sidies to rivate com etitors. "o retail sales were no lon&er ro%ita$le %or Reliance. 8ssar did not take a u$lic decision to close down um s( it sim ly sto ed re&ular su lies to its um s. As #a$le 5 shows) its sales in D447/43 were insi&ni%icant relatively to the market. #hus as %rom May D443) retail sales o% etrol and diesel oil are a &overnment mono oly -Appen'i+. ta*le F 0( there is no com etition. 1ne conse.uence o% this lack o% com etition was the recurrin& shorta&e o% diesel oil in #amil Nadu $etween May and Au&ust D443) when Reliance was e' ortin& it at the same time. Reliance had no etrol um s any more) so it could not have su lied the market. It could have sold diesel to u$lic sector oil com anies) $ut then it would have $reached the conditions o% its 81B status. #he 81B cate&ory) introduced into the trade olicy in the ?>@4s) has outlived its use%ulness. Chile it is reasona$le to e'em t e' orts %rom domestic ta'es) there is no reason to make that e'em tion conditional on minimum e' orts. It is not certain whether the se&re&ation o% e' orters and domestic roducers was use%ul when it was tried %irst( it has outlived its use%ulness) and in the #amil Nadu diesel crisis it roved counter roductive.
2$
DIII
Co$petition in 9a% In'u%try
Automotive %uels have to $e reached to vehicle owners( hence oil re%inin& com anies cannot do without access to a marketin& network. Gas) however) re.uires an e' ensive trans ort network in the %orm o% i elines( hence &as roducers re%er to sell to as %ew consumers as ossi$le) and re%er lar&e $uyers. Chere &as has $een availa$le $eyond industrial needs) it has $een i ed to households( $ut such domestic networks have $een con%ined to cities. Bnless i elines o% di%%erent su liers &et interconnected) there is no com etition $etween them( each has a mono oly o% su ly to the customers connected to its i eline. #here is only one common carrier i eline network in India. It has $een $uilt $y Gujarat "tate Petroleum 2or oration throu&h two su$sidiaries * Gujarat "tate Petronet) whose i elines connect the cities o% Gujarat) and Gujarat Gas) which lays retail connections within the cities. It trans orts su lies %rom three sources to Bom$ay and cities o% Gujarat- li.ue%ied natural &as %rom Natar that Petronet $rin&s into Dahej) &as su lies %rom Gujarat Gas) a British Gas su$sidiary) which in turn $uys &as %rom 1NG2 and sells it across Gujarat) and GAIL9s sales in Gujarat. GAIL was incor orated in ?>36 to evacuate associated &as %rom 1NG29s Gujarat oil%ields. Its most im ortant &as i eline is the Ga:ira/0ijay ur/Ma&dish ur i eline o% GAIL which carries 1NG29s &as out ut %rom Gujarat to a series o% ower and %ertili:er lants %rom the Gujarat coast to Punja$. As its &as su ly ran short) it also started takin& Petronet9s &as im orts %rom Natar. Assam Gas 2om any) which is owned $y the &overnment o% Assam) su lies &as to a %ertili:er lant) a etrochemical lant) %our ower stations) DA4 tea &ardens) 644 industrial esta$lishments and D4)444 domestic consumers. Reliance) which %ound considera$le &as o%%shore in the Erishna/Godavari %ield startin& in D445) has not laid i elines to evacuate the &as $ecause it has not yet %inali:ed customers. As shown in 2ha ter 0I a$ove) the two industries that are major otential customers) electricity and %ertili:ers) are owned $y the central and state &overnments. Most o% the enter rises in them make losses which are %inanced $y &overnments( it would $e im ossi$le %or new rivate lants to com ete with these lants. "ince these markets are closed) the only %easi$le o tion %or Reliance is to sell its out ut to GAIL at whatever rice it can &et) and let the &overnment distri$ute it to lants o% its choice.
21
IE Con,lu%ion
In D447/43) India9s %ive lar&est com anies in terms o% sales were oil com anies. Four out o% %ive were owned $y the &overnment. #he sales o% the si'th * 8ssar 1il * were ne&li&i$le. Reliance9s share o% sales was ?7 er cent o% all the oil com anies9 sales) $ut @4 er cent o% its out ut was e' orted. "o it does not re.uire much analysis to conclude that the Indian oil industry is an oli&o oly) and that it is dominated $y &overnment %irms -Appen'i+.ta*le F10. #he retail market %or etrol and diesel is almost entirely a &overnment mono oly. #his mono oly also a%%ects e' loration and roduction) %or as we have seen) a num$er o% com anies that have struck oil or &as cannot %ind a domestic market $ecause o% the &overnment9s mono oly o% distri$ution. Gow can this situation $e chan&ed) and com etition $e introducedR
Ta*le @: In'iaF% oil ,o$panie%F re6enue%" !!:.!? Co$pany Indian 1il 2or oration Reliance Industries Bharat Petroleum Gindustan Petroleum 1il and Natural Gas 2or oration 8ssar 1il #otal
"ource- 2om any annual accounts.
R% *illion D4?A ???D >7D >5> 7AA @ 4:##
Per ,ent 56.7 ?>.D [email protected] [email protected] ?5 4.? 1!!
#he domestic market is close to a mono oly. All hydrocar$on roducts are tradea$le) althou&h their trans ort costs vary &reatly * hi&hest %or &as) lower %or crude) and the more valua$le a re%ined roduct) the lower ro ortionally are trans ort costs. "o the most e' editious way o% introducin& com etition is %reein& im orts. #here cannot $e com etition in e' loration and roduction i% re%inin& and distri$ution are concentrated( and there cannot $e com etition in re%inin& unless crude is %reely im orta$le. Gence the %irst condition %or a more com etitive market is a$sence o% restrictions on %orei&n trade. #he ne't condition is ta' arity o% im orts and domestic roduction. #his means that whatever domestic ta'es are levied should $e a lica$le to im orts as well. Im ort duties may $e levied( $ut unless there is a reason to rotect e' loration and roduction $eyond the si:e to which they would &row without rotection) crude im orts should $e duty/%ree) so that there is ma'imum incentive to invest in re%inin&. #here will inevita$ly $e ta'ation o% re%ined roducts) since some o% them are considered in uts into lu'uries ;e &) aviation %uel and etrol=) and are in %act sources o% roli%ic revenue. Duties on domestic roduction must $e matched $y e.ual im ort duties) so that there is no discrimination in %avour o% e' orts. Bnder com etitive conditions) re%inin& adds little value to crude. #he tonna&e o% re%ined roducts comes to >4/>A er cent o% the crude in ut( and the throu&h ut o% a re%inery is so hi&h in com arison to its ca ital costs that a low avera&e ro%it mar&in &ives a hi&h rate o% return. In D447/43) a ro%it mar&in $e%ore ta' o% [email protected] er cent translated into a return on assets o% ?A.A er cent %or Reliance( %or I12) a mar&in o% 5.> er cent translated into a return on assets o% ?D.5 er cent. I12 was %orced $y the &overnment to &ive hu&e su$sidies on sales o% etrol) diesel and kerosene -Appen'i+.ta*le H10( on the other hand) its re%ineries are older and their historical cost er ton is lower. But even %or a hi&hly so histicated re%inery like that o% Reliance) the ca ital/ out ut ratio is close to one( %or sim ler re%ineries it would $e much lower) and the return on ca ital would $e hi&her than the mar&in. #y ically) a re%inery9s mar&in mi&ht $e ?4 er cent) and crude mi&ht account %or 34/>4 er cent o% its costs. "ince some re%inery roducts are considered lu'uries and others necessities) ta'es on them will $e di%%erent( and the avera&e ta' on re%ined roduct will $e hi&h. In the circumstances) the ta' system can $e sim li%ied and com etition in re%inin& intensi%ied $y not ta'in& crude at all) and concentratin& all ta'ation on re%ined roducts.
22
Finally) we come to entry restrictions. Gere) the answer is di%%erent %or e' loration and roduction) and %or re%inin&. Ce shall deal %irst with e' loration and roduction) $ut it should $e $orne in mind that the attractiveness o% e' loration is closely de endent on the ease o% entry in re%inin& and distri$ution. It is di%%icult to conceive o% com letely %ree entry into e' loration $ecause it involves access to land which has to $e a roved and sometimes or&ani:ed $y the &overnment. "o some %orm o% e' loration licensin& is unavoida$le. #he hi&h ro ortion o% concessions &ranted to 1NG2 would su&&est otherwise) $ut there is no overt discrimination a&ainst %orei&n com anies or e'clusion o% any com anies other than on such sel%/evident criteria as minimum e' erience and minimum investment. #he &overnment9s insistence that discovered oil and &as must $e used in India * its im licit e' ort $an * reduces the otential value o% %inds and ro$a$ly leads to %ewer $ids and lower revenue %or the &overnment( now that the $alance o% ayments is no lon&er a olicy ro$lem) this domestic use re.uirement is outdated. Ce have ar&ued a$ove %or duty/%ree im orts o% crude. In those circumstances) an e' ort $an or insistence on domestic use makes even less sense. "o the only im ortant varia$le in e' loration and roduction would $e ta'ation o% roduction ;e' loration can o$viously not $e ta'ed=. #he customary %orm o% ta'ation here is that the &overnment ta' a share o% the oil roduced * what is called ro%it oil. I% ro%it oil is :ero) the roducin& com any takes all the oil that is roduced) and the &overnment &ets nothin&. #he &overnment must $e very des erate to roduce oil domestically $e%ore it takes :ero ro%it oil. #his is not the situation in India. At the other e'treme) ro%it oil can $e ?44 er cent. No oil com any would a&ree to this unless the &overnment aid all costs lus some ro%it. "o this case really comes to the &overnment e' lorin& oil. 8' loration does not necessarily im ly roduction( a &overnment may e' lore sim ly to &et $etter knowled&e o% the country9s oil resources. #he knowled&e would reduce the risk in roduction) and would &et the &overnment $etter terms when it does decide to roduce. At resent) the &overnment &ives com anies e' loration licences with the condition that the data the concessionaires collect in the course o% e' loration must $e &iven to the &overnment( they are de osited with Directorate o% Gydrocar$ons. Given the %act that there is no ur&ency to roduce) it would $e a &ood idea to se arate e' loration and roduction( the &overnment should invest sim ly in e' loration and data collection. Chen it decides on roduction) it will then have ready data to sell to otential $idders( it will &et more $ids) and $etter terms. "o much %or e' loration. Gowever) it is re%inin& and distri$ution that re.uire re%orms to introduce com etition. #here is one recondition that is already satis%ied and is there%ore likely to $e i&nored- that roduct standards should $e de%ined and en%orced. 1il roducts are e'tremely di%%erentiated( di%%erent uses re.uire di%%erent s eci%ications) some re.uire ti&ht s eci%ications) and non/standardi:ed roducts can $e dan&erous in some uses such as aviation. "o standards have to $e de%ined and en%orced $y the &overnment. "uch standards will $e correlated with the earlier/mentioned commodity ta'es. In India) the e'treme variation in ta' rates creates ower%ul incentives to ass o%% a hi&hly ta'ed roduct as a less ta'ed one) and more o%ten) to adulterate roducts( %or instance) it is common to mi' divert su$sidi:ed kerosene and mi' it with hi&h/s eed diesel oil. #he solution ado ted has $een to ut a dye in su$sidi:ed kerosene. #hat is an ine%%ective remedy) %or the dye does not make kerosene less eli&i$le %or adulteration. #he correct solution would $e to have the same ta' on close su$stitutes) and to su$sidi:e the eo le intended directly. #here is one other condition that would need to $e modi%ied. Chen allowin& rivate entry) the &overnment has insisted that new entrants must set u a minimum ro ortion o% um s in S$ackward9 or Srural9 areas. Ideally) there should $e no such condition( i% the &overnment wants more etrol um s in certain areas) it must &ive them su$sidies until they reach a certain minimum turnover. #he &overnment has a service ta'( it can $e a lied to etrol um s) and a cut/o%% oint may $e set $elow which there would $e no ta'.
23
It is ossi$le to introduce com etition in distri$ution alone) without any chan&es in re%inin&. #he %irst condition %or it would $e to a$olish licensin& o% um s. #here is no ar&ument %or licensin& e'ce t that ca tive um s o% oil com anies have e'isted ever since they started sellin& etrol( there is a stron& ar&ument a&ainst licensin& in India) that it creates ram ant corru tion) which reaches ri&ht u to the minister. "econd) there should $e %ree im orts o% roducts. #here should $e no canali:ation o% roduct im orts) and no .uantitative restrictions. But distri$ution re.uires considera$le investment in stora&e) lo&istics and etrol um s. I% com etition is not introduced in re%inin&) the only com etition can come %rom im orts( it will not emer&e unless new entrants are assured o% continued access to im orts %or a lon& eriod. #o ensure a level layin& %ield) domestic ta' rates and im ort duties should $e identical) so that the ta' $urden is the same irres ective o% the ori&in o% su lies. #his is an ar&ument that a lies to all the olicy chan&es su&&ested here) and not just to ta'ation. #he oil roduction and distri$ution chain re.uires lar&e ca ital investments whose li%e runs into decades. I% the $ene%its o% com etition are to $e rea ed) the olicy re&ime must $e sta$le %or decades) and must in advance $e known to $e sta$le. I% the &overnment is serious a$out com etition) it must acce t and announce sel%/restraint on its %reedom to make and chan&e olicies. Finally) trans ortation a%%ects com etition in an im ortant way. For all hydrocar$ons) i elines are the chea est medium o% trans ort. Di%%erentiation o% re%ined roducts makes dedicated i elines %or them e' ensive) $ut even amon&st them) etrol and diesel are consumed in lar&e enou&h .uantities to make i in& economical. 2urrently) all i elines in India are owned $y &as or oil com anies) and thus insulate them %rom com etition. I% all the i elines were common carriers and carried oil) &as or roducts %or all customers without discrimination at reannounced rices) re%ineries and &as/$ased lants would s read out more evenly across the country) and there would $e &reater com etition amon&st them. #he case is similar to that o% electricity) in which there cannot $e com etition %or the %inal market unless a transmitter and distri$utor rovides access %rom every &enerator to every consumer. 1ne solution that was tried out was to decree that all com anies that had i elines would allocate a certain ro ortion o% i eline ca acity %or common carria&e. As %ar as we know) this re&ulation was a dead letter %rom the start( there has $een no common carria&e in India. #he $est solution now would $e to nationali:e all e'istin& i elines and &ive them to a new com any to run as a u$lic utility on a cost/ lus $asis. #he ne't $est solution would $e to &ive all the i elines o% state/owned com anies to a common carrier. In &as in articular) com etition cannot emer&e in the a$sence o% a common carrier. #he conclusions we have reached have im lications %or the 2om etition 2ommission. #he oil industry has a re&ulator o% sorts in Directorate General o% Gydrocar$ons. It rovides e' ertise that the ministry lacks and $uys such e' ertise as it does not have ;or makes oil com anies $uy it=. But it con%ines itsel% to technolo&ical issues and avoids the economic issues discussed a$ove( and on olicy it kee s close to the &overnment and does not choose to take an inde endent view. #his is where a role %or the 2om etition 2ommission is inesca a$le. It is %or the 2om etition 2ommission to decide at what level to %rame its interventions. Nuite a %ew o% &overnment o$structions to com etition that are %ound in the oil industry are resent in other industries as well( the 2om etition 2ommission would have to take a view on whether to take an industry/ s eci%ic a roach or to take u more &eneral issues o% olicy. 8ither way) there is a role that only the 2om etition 2ommission can lay.
TTT
24
Data Appen'i+
Petroleum Statistics A> At a 9lan,e Ta*le A1: 9ro(t) o& In'ian Petroleu$ In'u%try at a 9lan,e Ite$ 1> Re%er6e%H -3alan,e Re,o6era*le0 ;i= 2rude 1il ;ii= Natural Gas > Con%u$ption ;i= 2rude 1il ;in terms o% re%inery crude throu&h ut= ;ii= Petroleum Products ;e'cludin& RBF= @> Pro'u,tion ;i= 2rude 1il ;ii= Petroleum Products /> I$port% C E+port% -i0 9ro%% I$port% ;a= Nty - 2rude 1il P1L Products #otal ;a= ;$= 0alue 2rude 1il P1L Products #otal ;$= Pol> I$port% a% per D9CICS -ii0 E+port% ;a= Nty P1L Products ;$= 0alue P1L Products -iii0 Net Unit !!!. !1 !!1. ! !! . !@ !!@. !/ !!/. !4 !!4. != !!=.!:G
Mn. #onne Bn. 2u$. Mtr.
745 7@4
75D 7@5
76? 7A?
755 3A6
75> >D5
73@ ??4?
7A@ ?4>4
Mn. #onne
?45.66
?47.D7
??D.A@
?D?.36
?D7.?D
?54.??
[email protected]
Mn. #onne Mn. #onne Mn. #onne
?44.47 5D.65 >A.@?
?44.65 5D.45 ?44
?46.?5 55.46 ?46.?6
?47.7A 55.57 ??5.6
???.@5 55.>3 ??3.D5
??5.D? 5D.?> ??>.7A
??>.AA 55.>> ?5A.D@
Mn. #onne Mn. #onne Mn. #onne Rs. Billion Rs. Billion Rs. Billion R%> 3illion
76.? >.D7 35.57 @A>.5D ?D4.>5 734.DA :1/>#:
73.7? 7.4? 3A.7D @45.>7 7D.6> @[email protected]@ ==:>:
3?.>> @.76 33.75 7@?.>A 3D.4@ 366.4? ?4@>=:
>4.65 7.> >3.55 35A.D3 >@.77 >5D.4A #/4>
>A.3@ 3.37 ?46.@> ??74.45 ?63.33 ?5?3.>? 1@/!>#/
>>.6? ??.@3 ???.4> ?7?7.4D DAA.7A ?>7D.77 1#/=>/
??4.3@ ?@.>7 ?D7.35 D?>>.>? 645.3> [email protected] 4? >4#
Mn. #onne Rs. Billion
3.57 [email protected]
?4.47 3D.?>
?4.D> ?43.@3
?6.@D [email protected]?
?3.D? D>>.D3
D?.A? [email protected]
5D.6 34?.7D
25
I$port%: ;a= Nty - 2rude 1il P1L Products #otal ;a= ;$= 0alue 2rude 1il P1L Products #otal ;$= -i60 Unit Dalue o& Cru'e Oil I$port% -9ro%%0 4> In'iaF% Total E+port% => Pol> I$port% a% I o& In'iaF% Total E+port% ;i= Gross Im orts ;ii= Net Im orts :> Contri*ution o& Oil Se,tor to CentreAState Re%our,e% ;i= Royalty %rom 2rude 1il ;ii= Royalty %rom Gas ;iii= 1il Develo ment 2ess ;iv= 8'cise O 2ustom Duties ;v= "ales #a' ;vi= Dividend ?> Natural 9a% : ;i= Gross Production ;ii= Btilisation
Mn. #onne Mn. #onne Mn. #onne Rs. Billion Rs. Billion Rs. Billion
76.? 4.> 7A @A>.5D 66.D? 745.A5
73.7? /5.4@ 7A.@A @45.>7 />.7 A>6.D7
3?.>> /5.AA 73.66 7@?.>A /D@.@D 75A.55
>4.65 /@.7D 35.7? 35A.D3 /7?.46 [email protected]
>A.3@ />.35 [email protected] ??74.45 /?A4.6 ?4?>.@5
>>.6? />.35 3>.A3 ?7?7.4D /D??.6A ?A4A.A7
??4.3@ /?A.65 >A.65 D?>>.>? /5>7.35 ?34D.3
R%>AMT R%> 3illion
??#? !@4>:1
:=
!#!>1?
# #@ 441>@:
# @: #@@>=:
1
!=
1: : /4=/>1?
1#?// 4:1=>/
@=1?>:#
Q Q
53.5 56.@
5D.6 D3.6
55.? D3.3
5?.3 D@.?
[email protected] D3.D
65.D 55
6A.A 5?.A
Rs. Billion Rs. Billion Rs. Billion Rs. Billion Rs. Billion Rs. Billion Bn. 2u$. Mtr. Bn. 2u$. Mtr.
DD.7D @.43 D7.D3 5A>.?D D55.7A 56.3D
D6.3@ @.A> D3.73 5@?.46 D44.> 5D.37
54.@7 7.73 A4.>? 6A?.D7 D>7.6? @7.>6
5?.76 3.A6 A?.65 A47.55 5D3.6> @5.?
6D.7? 3.D> AD.63 A@5.>A 5>4 >6.5@
A4.@ >.3? A4.47 @5?.65 N.A. N.A.
N.A. N.A. 74.56 7?3.>5 N.A. N.A.
D>.677 D7.3@
D>.7?6 D3.457
5?.53> D>.>@5
5?.>@D 54.>4@
5?.7@5 54.77A
5D.D4D 5?.5DA
5?.767 54.7>?
A$$r- NA - Not Availa$le. Note - T - Provisional. U - As on ?st A ril o% Initial year. "ource- Ministry o% Petroleum and Natural Gas. Government o% India) ;downloaded %rom www.indiastat.com=
26
Ta*le A : Co$pany.(i%e Pro'u,tion" Con%u$ption" I$port an' E+port o& Li5ue&ie' Petroleu$ 9a% -LP90 in In'ia
Co$pany Parti,ular Year PSU Re&inery Fra,tionator PDT Re&inery EOL PDT -TMT0 Total
Production
2onsum tio n
Im ort
8' ort
IOCL CPCL 3PCL HPCL NRL 3RPL MRPL ON9C 9AIL OIL RIL D447/ 43 ;A r/ Dec 47= ??>3 D@4 @75 6A5 53 56 D?? 776 73> 5@ ?>>D D44@/ 47 ?633 5>> 3D@ A>D A6 63 D3D ?4D4 ?45D 66 D@A5 D44A/ 4@ ?5A6 647 75> 6@@ 67 A4 D7A ?4>6 ?46D 63 D?>5 D447/ 43 ;A r/ Dec 47= 5>7@ /// D?>D D?4A /// /// /// /// /// /// /// D44@/ /// /// /// /// /// /// 47 A4>3 /// D734 D@A? > D44A/ /// /// /// /// /// /// 4@ 635D /// D@?5 DA5? 67 D447/ /// /// /// /// /// /// 43 ;A r/ Dec 47= ?DD@ /// ??? ?7? /// D44@/ /// /// /// /// /// /// 47 ?AA3 /// ?>D D?7 /// D44A/ /// /// /// /// /// /// 4@ DD55 /// D?7 /// /// D447/ /// /// /// /// /// /// 43 ;A r/ Dec 47= 7D /// /// /// /// D44@/ /// /// /// /// /// /// 47 3@ /// /// /// D@ D44A/ /// /// /// /// /// /// 4@ A5 /// /// /// /// "ource- Rajya "a$ha Bnstarred Nuestion No. A7A) dated on 46.45.D443. ,downloaded from www.indiastat.com-
A7 ?7
/// /// ///
@A?A 36A6 77?7
/// /// ///
677 5?4 655
37A4 ?4363 ?46A@
/// /// ///
677 5?4 655
?>3A DD73 D335
///
/// 4.?
7D ??D A5
///
///
3>
Pro'u,tion Ta*le 31: Re&inery Cru'e T)rou2)put an' Pro'u,tion o& Petroleu$ Pro'u,t% in In'ia
,.!!! /onnes-
Year
Cru'e T)rou2)put Pu*li, Pri6ate Total Se,torAJDC Se,tor @4 ?>@@ ?43D4 ?746A DA555 6D>?4 A?77D @AD6 3D@7 7AA> AD53 A45 / / @A36 ?4D55 ?357> DDD35 DA35@ 6D>?4 A?77D
Pro'u,tion Pu*li, Pri6ate Se,torAJDC Se,tor ?? ?755 >>@A ?A3>A D5@6@ 5>33? 63A@D @?36 73D3 7?6A 6>56 677 / /
Total @?>A >A@? ?7??4 D43D> D6?D5 5>33? 63A@D
?>@?/ @D ?>@A/ @@ ?>74/ 7? ?>7A/ 7@ ?>34/ 3? ?>3A/ 3@ ?>>4/
27
>? ?>>?/ >D ?>>D/ >5 ?>>5/ >6 ?>>6/ >A ?>>A/ >@ ?>>@/ >7 ?>>7/ >3 ?>>3/ >> ?>>>/ 44 D444/ 4? D44?/ 4D D44D/ 45 D445/ 46 D446/ 4A D44A/ 4@ D44@/ 47T
A?6D5 A563D A6D>@ A@A56 A376? @D374 @A?@@ @3A53 764AD 776?? 77@D4 3D4?A 3>6>A >D343 >@>6@ ?43?75
/ / / / / / / / ??>?D D@455 D>@A6 54A66 5D56A 5654> 55?@5 53573
A?6D5 A563D A6D>@ A@A56 A376? @D374 @A?@@ @3A53 3A>@6 ?45666 ?47D76 ??DAA> ?D?364 ?D7??7 ?54?4> ?6@AA?
6356> A45A> A?436 AD>D7 AA43? A>44A @?543 @6A66 @>?66 7D4A> 7D6@D 7@D5@ 355>7 3@5D3 3>7>5 >>7?6
/ / / / / / / / ?4D@7 D5AAA D7A6D D7>46 544@@ 5?>4A D>>A7 5AA6@
6356> A45A> A?436 AD>D7 AA43? A>44A @?543 @6A66 7>6?? >A@?6 ?44446 ?46?64 ??56@5 ??3D55 ??>7A4 ?5AD@4
Note- T - Provisional. "ource- Ministry o% Petroleum and Natural Gas. Government o% India) ;downloaded %rom www.indiastat.com=
Ta*le 3 :
Re&inery.(i%e Cru'e Run an' Pro'u,tion o& Petroleu$ Pro'u,t% in In'ia . Part I
;in S444 tonnes=
IOC 3PCL Mu$*ai HPCL Mu$*ai HPCL Di%a8) IOC 9u(a)ati IOC 3arauni IOC 9uBarat IOC Hal'ia IOC Mat)ura
Year 1##!.#1 #otal Production 2rude Run 1##1.# #otal Production 2rude Run 1## .#@ #otal Production 2rude Run 1##@.#/ #otal Production
AOD
A64 A@@
@@45 @>A7
AA4@ A7@@
5D5? 56@6
7?D 735
DD4@ D6?@
37>? >556
D@43 D>5A
76?6 7343
AD6 A6@
@@54 @>64
66>@ 67D>
5@7@ 5>D4
7>5 3A@
D4@4 DD@D
3377 >57>
D7>? 54D?
7>DA 3D5?
@D5 A67
@37A 7D55
A@?> A36>
6D76 6AD7
76> 3?A
D4>7 DD37
>DA3 >734
D3?4 5464
7654 7365
A5A
@35?
A776
6D45
364
D4A?
3354
D373
3?D?
2.
2rude Run 1##/.#4 #otal Production 2rude Run 1##4.#= #otal Production 2rude Run 1##=.#: #otal Production 2rude Run 1##:.#? #otal Production 2rude Run 1##?.## #otal Production 2rude Run 1###.!! #otal Production 2rude Run !!!.!1 #otal Production 2rude Run !!1.! #otal Production 2rude Run !! .!@ #otal Production 2rude Run !!@.!/ #otal Production 2rude Run !!/.!4 #otal Production 2rude Run !!4.!= #otal Production 2rude Run !!=.!:G #otal Production 2rude Run
AA6
7D45
@4?3
6663
>?4
DDDD
>656
5?4@
3A?3
A4> A5@
747? 7A4@
6>?5 AD56
67A> A4?6
355 336
D45> DDD4
>?63 >333
D>>3 5DA3
34?3 3577
A57 AA>
74@A 76@4
A@76 A>@A
67A5 A457
73? 35>
D?D> D5DD
>67@ ?4?@7
5?@3 56?@
7>56 355D
6A5 677
7D7> 7@64
@D53 @A56
6A7@ 6367
773 363
?7D4 ?3>A
>7DD ?45AD
5?3> 56A?
7766 3??5
67> A4D
7A>? 7>>@
@4A5 @573
D543 D6@7
77> 3A@
?>3> D?3?
?4465 ?4@>6
666A 674@
354D 3A@A
AD6 AA5
3A5? 3373
6>AA AD45
5@57 53@?
77D 35@
D4?7 DD46
?456@ ?4>5A
665D 67?6
3@@A 3>4>
A@6 @45
3655 3>47
A74D @447
6DAD 6AAA
3A3 >?6
5?77 56??
?46D> ???4>
57>7 6?4A
737A 3?DA
@A? @73
3D45 3@35
A?3> AA7A
A>3@ @64A
@A5 747
D33> 5?DD
??D@> ?D44@
5A4D 5375
@3@5 7?55
@64 @A5
3D7> 3766
ADD> A@6?
@556 @74@
A73 @A@
D@DA D37@
??4D3 ??@>7
5@4? 64D@
7734 345?
A77 A3?
3DD? 37??
A@@4 @473
@53@ @3A?
5>4 6A3
D@57 D>>6
??756 ?D656
645? 6A?5
7334 3D47
A36 @4D
3DA> 37A7
A747 @?43
7?6A 7A>?
75> 3>?
53?A 6546
?D4D> ?D7A3
6??D 6A?3
7>5D 3D63
@5@ @A?
3A>3 >?53
A7DA @??3
7564 73DA
3@3 ?44D
6A@5 A43D
??457 ??@>3
6>7? A6?3
@?6A @537
@4A @?A
>@D7 ?4D>3
A3?7 @D63
7A?A 7>34
7A4 3@6
A4?@ AAA5
?435> ??A65
6>33 AA4D
76@5 7>53
A@7 A3@
??D56 ?D454
@>3? 76?>
373D >577
7D@ 35>
6>5? A6@>
?D?6D ?D>A5
AD3D A35@
36DA 3335
"ource- Ministry o% Petroleum and Natural Gas. Government o% India) ;downloaded %rom www.indiastat.com=
2:
Ta*le 3@:
Re&inery.(i%e Cru'e Run an' Pro'u,tion o& Petroleu$ Pro'u,t% in In'ia . Part II
;in S444 tonnes=
Year 1##!.#1 #otal Production 2rude Run 1##1.# #otal Production 2rude Run 1## .#@ #otal Production 2rude Run 1##@.#/ #otal Production 2rude Run 1##/.#4 #otal Production 2rude Run 1##4.#= #otal Production 2rude Run 1##=.#: #otal Production 2rude Run 1##:.#? #otal Production 2rude Run 1##?.## #otal Production 2rude Run 1###.!! #otal Production 2rude Run !!!.!1 #otal Production 2rude Run !!1.! #otal Production 2rude Run !! .!@ #otal Production
IOC Paniput
-CRL0 7RL Co,)in
CPCL-MRL0 Manal i Nari$ana$
3RPL A%%a$
NRL Nu$ali. 2ar)
MRPL Man2alore
ON9C Tatipa8a
RPL Ja$. na2ar
EOL Da'i. nar
Total
/ /
67?A A44@
AD7> A@>3
/ /
>A7 ??5>
/ /
/ /
/ /
/ /
/ /
63A@D A?77D
/ /
6AA6 636@
A?67 AAD>
/ /
>7@ ??@6
/ /
/ /
/ /
/ /
/ /
6356> A?6D5
/ /
63A5 A?DD
6>D7 A5D5
/ /
>66 ???@
/ /
/ /
/ /
/ /
/ /
A45A> A563D
/ /
6A@3 63@D
A5?5 A7D3
?D4 ?D@
?4D4 ??@7
/ /
/ /
/ /
/ /
/ /
A?436 A6D>@
/ /
6345 A?5A
@6@? @>D?
574 53D
?44A ??7>
/ /
/ /
/ /
/ /
/ /
AD>A7 A@A56
/ /
74?4 76D?
A?@D AA>>
5A3 574
?4?? ?D?A
/ /
D5 5>
/ /
/ /
/ /
AA43? A376?
/ /
@3>4 7D>5
@?65 @@D?
55D 56A
?54@ ?A6D
/ /
D@5A D>?D
/ /
/ /
/ /
A>44A @D374
/ /
75?D 77D>
@657 @>@A
A55 AA@
?63A ?7?3
/ /
5AAD 53A5
/ /
/ /
/ /
@?543 @A?@@
?>43 DD43
7546 7774
A@AD @?4?
@?> @66
?66A ?@A5
/ /
5757 64@>
/ /
/ /
/ /
@6A66 @3A53
5@33 6?A5
73D@ 7354
A374 @577
@?D @5@
?@@A ?>4A
?3@ D?A
67?5 AD44
/ /
?4D@7 ??>?D
/ /
7>6?? 3A>@6
AD4@ A747
745> 7AD4
AAD6 @46@
AA> A7>
?5A5 ?633
?D>5 ?6A?
A37> @653
/ /
D5AA@ D@455
/ /
>A@?6 ?45666
A5D5 A3DD
@5>3 @7>7
A@7@ @?D5
A6> A@@
?5?6 ?67A
D4AD D547
A465 A637
?5 ?5
D7A6D D>@A6
/ /
?44446 ?47D76
AA@?
74@5
A@A3
@5?
?5AD
?@@A
@@>>
>?
D7>46
/
?46?64
3$
2rude Run !!@.!/ #otal Production 2rude Run !!/.!4 #otal Production 2rude Run !!4.!= #otal Production 2rude Run !!=.!:G #otal Production
@?4?
7A34
@?7@
@65
?6@5
?37>
7DA5
>5
54A66
/
??DAA>
A3?3 @553
76?> 73A6
A3D7 @537
@6A @A5
?>@5 D?D@
?>@? DD44
>5AD ?44@>
>4 >?
544@@ 5D56A
/ /
??56@5 ?D?364
A3D@ @5>4
7537 7>D6
75>7 3?3?
755 76D
D??3 D5??
?356 D46D
??4A> ??34>
>D >5
5?>46 5654>
/ /
??3D55 ?D7??7
A734 @A47
@6A@ @>5>
376D >@34
@7? @3D
DD6@ D5A@
?>?3 D?55
??D@3 ?D4?6
>D >5
D>>A7 55?@5
/ /
??>7A4 ?54?4>
34?@
7D57
336?
@4>
?>5D
DDD7
??@3>
>5
56?76
?57D ?7@5
?5AD@4 ?6@AA?
2rude Run >65A 776D >736 @?3 D4@7 DA46 ?DA5@ >6 5@@?@ A$$r %or Part I and III12 - Indian 1il 2or oration Limited. GP2L - Gindustan Petroleum 2or oration Limited. BP2L - Bharat Petroleum 2or oration Limited. A1D - Assam 1il Division. Note - T - Provisional. "ource - Ministry o% Petroleum and Natural Gas) Govt. o% India. A$$r. - I12 - Indian 1il 2or oration Limited. 2P2L - 2hennai Petroleum 2or oration Limited. BRPL - Bon&ai&aon Re%inery O Petrochemicals Limited. NRL - Numali&arh Re%ineries Limited. MRPL - Man&alore Re%inery O Petrochemicals Limited. 1NG2 - 1il O Natural Gas 2ommissionL2or oration Limited. RPL - Reliance Petroleum Limited. ERL - Eochi Re%ineries Limited. 2RL - 2ochin Re%ineries Limited. Note - T - Provisional. "ource - Ministry o% Petroleum and Natural Gas. Government o% India) ;downloaded %rom www.indiastat.com=
31
Ta*le 3/: Petroleu$ Re&inin2 Capa,ity in In'ia
In%talle' Capa,ity A% on !1>!/> !! In%talle' Capa,ity A% on !1>!/> !!@ In%talle' Capa,ity A% on !1>!/> !!4 ;Million #onne er Annum= In%talle' In%talle' Capa,ity Capa,ity A% on A% on !1>!/> !!= !1>!/> !!:
Re&inery -A0 Pu*li, Se,torAJDC Re&inerie% I> IOC Re&inerie% ?. I12) Di&$oi D. I12) Guwahati 5. I12) Barauni 6. I12) Gujarat A. I12) Eoyali @. I12) Galdia 7. I12) Mathura 3. I12) Pani at II> 3PCL Re&inerie% ?. BP2L) Mum$ai D. ERL Eochi III> HPCL Re&inerie% ?. GP2L) Mum$ai D. GP2L) 0isakh ID> CPCL" Re&inerie% ?. 2P2L) Manali D. 2P2L) Narimanam D> 3RPL" 3on2ai2aon DI> NRL" Nu$ali2ar) DII> ON9C" Tatipa8a DIII> MRPL" Man2alore -30 Pri6ate Re&inery ?. RPL) Mamna&ar D. 8ssar 1il Ltd. 0adinar 9ran' Total
Year o& Co$$i%%. ionin2
?:>==? @?>14 ?>4? ?>@D ?>@6 ?>@A ?>@A ?>76 ?>3D ?>>3 . ?>AA ?>@@ ?>A6 ?@A7 ?>@> ?>>5 1#:# 1### !! 1##= ?>>> D44@ 4.@A ? 6.D ?5.7 / 6.@ 3 @ . @.> 7.A 1@ A.A 7.A : @.A 4.A >@4 @ !>!:? #>=# : D7 /
?#>#: @#>#4 4.@A ? @ ?5.7 / 6.@ 3 @ . @.> 7.A 1@ A.A 7.A :>4 @.A ? >@4 @ !>!? #>=# : D7 /
#/>@: /1>@4 4.@A ? @ / ?5.7 @ 3 @ . @.> 7.A 1@ A.A 7.A 1!>4 >.A ? >@4 @ !>!? #>=# @@ 55 /
##>/: /1>@4 4.@A ? @ / ?5.7 @ 3 @ 1#>4 ?D 7.A 1@ A.A 7.A 1!>4 >.A ? >@4 @ !>!? #>=# @@ 55 V
1!4>/: /:>@4 4.@A ? @ / ?5.7 @ 3 ?D.44J 1#>4 ?D 7.A 1@ A.A 7.A 1!>4 >.A ? >@4 @ !>!? #>=# /@>4 55 ?4.A 1/?>#:
- AJ3 0 11/>==? 11=>#: 1 :>@: 1@ >/: Note - V - 2ommissioned on D6.??.D44@. J - Increased installed ca acity on ?D Manuary) D447. A$$r. - I12 - Indian 1il 2or oration Limited. GP2L - Gindustan Petroleum 2or oration Limited. BP2L - Bharat Petroleum 2or oration Limited. 2P2L - 2hennai Petroleum 2or oration Limited. ERL - Eochi Re%ineries Limited. BRPL - Bon&ai&aon Re%inery O Petrochemicals Limited. MRPL - Man&alore Re%inery O Petrochemicals Limited. 1NG2 - 1il O Natural Gas 2ommissionL2or oration Limited. RPL - Reliance Petroleum Limited. NRL - Numali&arh Re%ineries Limited. M02 - Moint 0enture 2om any. "ource- Ministry o% Petroleum and Natural Gas. Government o% India) ;downloaded %rom www.indiastat.com=
32
Ta*le 34: Pro'u,tion o& Petroleu$ Pro'u,t% in In'ia
; P 444 #onne=
Pro'u,t% -a0 Fro$ Cru'e Oil I> Li2)t Di%tillate% o& ()i,) LPG Mo&as Na htha "BP"LGe'ane 1thers ;LD= II> Mi''le Di%tillate% o& ()i,) Eerosene A#FLR#FLMet A/? G"D LD1 MB1 M#1 1thers ;MD= III> Hea6y En'% o& ()i,) Furnance 1il L"G"LGG"LRF1 #otal Fuel 1ils Lu$e 1ils Bitumen Petroleum 2oke Para%%in Ca' 1thers Ca'es #otal Ca'es 1thers ;G8= Total Pro'u,tion Cru'e T)rou2)put -*0 Fro$ Natural 9a% LPG
!!!.!1
!!1.!
!! .!@
!!@.!/
!!/.!4
!!4.!=
!!=.!:G
!!:.!?G
4!/? 6433 3474 >>43 >5 D>3D 4 //4 37?6 DA?5 5>4AD ?63? A7 D?6 @3A 1?1 1 @67> 6>?5 ??5>D @36 D7D? D675 A? @? ??D 75> #4=1/ 1!@/// D46A
=4@# 6773 >@>> >?34 36 D33D 4//!# >@3? DA>A 5>3>> ?745 66 D?D A5? 1#!4= 7633 675> ?DDD7 @A? DA@? D736 6A 57 3D 7A? 1!!!!/ 1!: :/ DD4A
?=1# 6>45 ?45@? >@A4 3D 574A 44#@: ?44D3 54A5 64D47 D47> 67 D65 A74 1#4?/ 7AD> 6@53 ?D?@7 @36 D>6? D@A> 6D 5 6A ?433 1!/1/! 11 44# D574
@1#:1 A563 ?4>>> ??5?7 3> 6547 =!!1? ?4?37 6D3> 655?@ ?@A> 65 D6D A@7 1/:/ 3757 6@5A ?557D @@@ 55>7 D765 A5 4 A5 ?D65 11@/=@ 1 1?/! D5D4
@ ?=4 AA74 ??4A7 ?6?44 3? D?53 = 4!# >D>3 AD4? 6A>45 ?A6@ 5@ DD@ A@? @ !4 ?4A@4 66?4 ?6734 @6@ 556> 5?@D @6 6 @3 ?4?4 11?4:# 1 :11= DD64
@ / : AADA ?4A4D ?6A4> >3 ?3>? =//@ >473 @?>@ 67A7D >D5 5> D?D @@5 ?#1 ?45D4 5>3A ?654A @77 5A7@ 5?3D @5 5 @@ / 11#:4! 1@!1!# D?3A
@?1!/ @5?A ?DA5> ?@@@4 7> DA>4 :1 4 36>? 734A A56@A 345 5D ?37 @@? 4#@1 ?D5DA 557D ?A@>7 3DA 53>? 577> @5 /D / / 1@4 =! 1/=441 D4>5
/!111 @75D ?6?@7 ?@664 / D77D :==/# 77>6 >?47 A35@? @7? / / 7?@ ?1:! ?D@53 5?@7 / 33? 6A47 6?D> @6 /? / D736 1//#@! . D4@4
A$$r.- LPG - Li.ue%ied Petroleum Gas. G"D - Gi&h " eed Diesel. LD1 - Li&ht Diesel 1il. A#F - Aviation #ur$ine Fuel. Note - LD - Includes Pro ylene) 2/5) Pro ane) Ge'ane) " ecial Boilin& Point " irit) Ben:ene) #oluene) Petroleum Gydro 2ar$on "olvent) Natural Ge tane) Methyl #ertiary Butyl 8ther) Poly Iso$utine) PBF" and M8EF". MD - Includes Mineral #ur entine 1il) MP/A) Linear Alkyl Ben:ene Feed "tock) Arome') Mute Batchin& 1il) "olvent ?6DA) Low "ul hur Geavy Fuel G"D) DG2B and " ecial Eerosene. G8 - Includes 2ar$on Black Feed "tock) "ul hur) "olar 1il) LAR1 and 8'tracts.
33
T - Provisional. "ource - Ministry o% Petroleum and Natural Gas. Government o% India) ;downloaded %rom www.indiastat.com=
Ta*le 3=: Pro'u,tion -Per,enta2e0 o& Petroleu$ Pro'u,t% in In'ia
Pro'u,t% Li&ht Distillates Middle Distillates #otal Fuel 1ils Lu$es Bitumen 1thers Total Pro'u,tio n RBF O LossesLInv entories Cru'e Run 1##1. # ?3.3 A?.5 ?3.7 4.3 5.5 ?.? #/ @ 1!! 1##4. #= D?.D A? [email protected] ?.? 5.6 4.3 #@>? @.D 1!! 1##=. #: D4.A A?.@ [email protected] ? 5.@ 4.3 #@># @.? 1!! 1##:. #? D4 AD.? ?7 4.> 5.5 4.3 #/>1 A.> 1!! 1##?. ## D4.? AD.3 ?@.? 4.> 5.A 4.3 #/> A.3 1!! 1###.! D?.5 AD.5 ?5.D 4.> D.> ?.3 # >/ 7.@ 1!! !!!.1 D6.D A4.7 ?? 4.7 D.@ 5.D # >/ 7.@ 1!! !!1. D6.7 A4.7 ??.6 4.@ D.6 5.6 #@> @.3 1!! !! .@ DA.6 6>.7 ?4.3 4.@ D.@ 5.6 # >4 7.A 1!! !!@./ [email protected] 6>.5 ?? 4.A D.3 5.5 #@>1 @.> 1!! !!/.4 DA.3 6>.? ??.@ 4.A D.@ 5.6 #@ 7 1!! !!4.= D6.> 6>.A ?? 4.A D.7 5.5 # 3 1!! !!=. :G D@ 63.@ ?4.7 4.@ D.7 5.3 # >@ 7.7 1!!
A$$r. - RBF - Re%inery Boiler Fuel. Note - T - Provisional. "ource- Ministry o% Petroleum and Natural Gas. Government o% India ;downloaded %rom www.indiastat.com=
C>
Con%u$ption Ta*le C1: Con%u$ption o& Petroleu$ Pro'u,t% -Pu*li,APri6ate Se,tor0 in In'ia
;in S444 tonnes=
Pro'u,t% A> Pu*li, Se,tor 1> Li2)t Di%tillate% LPG Mo&as Na htha NGL 1thers > Mi''le Di%tillate% "E1 A#F G"D1 LD1 1thers @> Hea6y En'% Furnace 1il L"G"LGG" Lu$esLGreases Bitumen
1##:.#?
1##?.##
1###.!
!!!.1
!!1.
!! .@
!!@./
!!/.4
!!4.=
!!=.:
14:/ 6A3? A?3D 67?@ 7@3 6>A /#:1= >373 D?43 5@47? ?D5A 6D6 1/@?! @@A? 65D5 35A D?73
1:#4? A46? AA47 @@AD 554 6D3 41=?= ?4A>> D??D 57D?7 ?D73 634 141 @7@7 6A57 33A D6?D
!/ @4D> A>4> 7>74 >? 676 4/ 4# ?475? D?>7 5>D37 ?A?D A5D 14#1# @3?@ 67@5 >?A D37>
1::! @@?5 @@?5 34A> @ 67> 4 ?4/ ?47?6 DD6> 57>53 ?5>> AA6 14@= @57? 6>3> 7>7 D@?3
#1= 75?4 74?? 3?D3 D7 664 4!==1 ?4??6 DDA@ 5@A?A ?D4D A76 14414 743A 6A5? 3?> D6D3
@4=: 3?65 7A74 7D36 5D A53 4!444 >747 DD@> 5@A56 ?6?5 @5D 1=!! @>6? 67?? >53 D367
4!! >43> 73>A 75D> 4 @3> 4!4/? >6D@ D636 5@37A ??3? A3D 1=4?! 7D47 6@55 3?@ 55@7
4@1: >>@7 3?@D @AA4 4 @53 41#1# >5>A D3?? 53437 ?43A A6? 14: 34AA 6646 77> 55?3
/!!? >>7@ 3DA6 A?AA 4 @D5 4! ?1 >575 5D>A 5@543 356 67? 1:/1@ 3DD? 5>47 3>D 563A
4@4! ?4A54 3345 A5D7 4 @>4 441?# >6?D 5>3D 64@?7 7D4 6A3 1:/!1 3?3@ 55@? 373 53?3
34
Petroleum 2oke Para%%in Ca' 1ther Ca'es 1thers Total -A0 -E+,l> R3F0 3> Pri6ate Se,tor 1> Li2)t Di%tillate% LPG M" Na hthaLNGL Ben:ene 1thers > Mi''le Di%tillate% "E1 A#F G"D1 LD1 1thers @> Hea6y En'% Furnace 1ilLL"G" Lu$esLGreases Bitumen Petroleum 2oke 2BF" 1thers Total -30 Total -AJ30 Re&inery Fuel 9ran' Total
DD7 D3 6A >5 :#?@? 1 / DDD 4 ?376 4 D3 11?: ??37 4 4 4 4 11/1 A?7 D6@ 4 4 4 573 //4 ?/ #! @41/
5?A 5@ 7@ >6 ?/:== 4 5?? 4 DD5> D5 4 1=// ?@66 4 4 4 4 14:# ?D4@ D?D 4 73 35 4 4:#= #!4= @:!!
5D3 A5 3> 7@ #!=41 /!4? 5>D 4 D35? 55 34D 11:4 ??@7 4 3 4 4 1 ! 376 5D3 4 4 4 4 =/@4 #:!?= 44//
6?6 65 @D @3 ?##?= :4// 645 4 5@?6 3 5A?> =1@ A>5 4 D4 4 4 1#@1 ?D>5 D6@ >@ 56 D54 5D 1!!?? 1!!!:/ =#!!
5@7 6A A? ?3> ?#!# =:! 6?3 4 5@44 4 D@36 ::? 5?3 4 5? 5>4 5> @?=! ?5@@ 5?3 ?A@ ?65? 7A A?6 11@/! 1!!/@ :
55A 6? ?5 ?7@ #!1 / ?1?? D43 4 6@6A 4 555A 141! @>3 4 ??4 @A4 AD /@!/ ?43@ 5?D ?5> DDD3 76 6@A 1/!! 1!/1 = :=4!
543 6? D4 ?33 # 1@! #@@@ D?@ D 6A5> 4 6A7@ 1/:4 346 4 ?>> 653 56 /?1@ ??4A @?? @ DA@> D54 D>D 14= 1 1!::41 ? /!
66A @4 D4 D77 #/4#@ #??: D73 3> 7665 4 D477 1#?: 4 4 ?A@6 5>? 5D 41=: ?43? A@3 D? D@36 D65 A74 1:!/1 111=@/ ?4@: 1
6>@ AA ?> D77 #1:! #=4/ 634 5>5 745> 4 ?76D /1/1 ?@3 ? 5335 6> 64 ::1= 744 ??3> D5 665D ?A7 ?D?A 1411 11@ 1@ #1/1 @4/
@6A @7 4 66@ #:#/! 11: = 5?> 63D 3AA> 4 D5@@ /!= >5 ? DD7> 4 55 ?=:: ?47? ?4DD ?6 67>@ 364 >56 ?!# 1 !:/#K 1!# ! 1@1==#
?:?!/ #/ = 1! =@! 1!=#:/ 1!::!4 111::= 114##1 1 !1:1 A$$r. - LPG - Li.ui%ied Petroleum Gas. Mo&as - Motor Gasonline. NGL - Natural Gas Li.uid. "E1 - "u erior Eerosene 1il. A#F - Aviation #ur$ine Fuel. G"D1 - Gi&h " eed Diesel 1il. LD1 - Li&ht Diesel 1il. L"G" - Low "ul hur Geavy "tock. GG" - Got Geavy "tock. 2BF" - 2ar$on Black Feed "tock. Note - T - Provisional. W - Private consum tion %i&ures includes im orts also. "ource- Ministry o% Petroleum and Natural Gas. Government o% India) ;downloaded %rom www.indiastat.com=
35
Ta*le C : A6era2e Annual Co$poun' 9ro(t) Rate% o& Con%u$ption o& Petroleu$ Pro'u,t% in In'ia -Dt) to Et) Plan0 ;in Q= E Plan DI Plan D Plan DII Plan DIII Plan IE Plan !! . Pro'u,t 1#?!. 1#:/.:# 1#?4.#! 1## .#: 1##:.! !: ?4 Li.uid Petroleum Gas M" Na htha 1thers Li2)t Di%tillate% A#F "E1 G"D LD1 1thers Mi''le Di%tillate% Lu$es F1LL"G" Bitumen 1thers Hea6y En'% Total Sale 3.7 /4.? ?4.6 /?.7 4>= 3.D 5.7 >.3 /? 4 =>: /D.5 D.6 /D.6 ?.@ 1>4 />? ?3.6 @.> A.5 ?.D :> 5.D > @.> /?.? 4.D =>= 5.D D.5 /D.@ A.A 4>/ ?3.> ?4.> ?.6 ?6.D ?>@ A.3 @.7 3.@ 6.6 5 :>: @.> D.? ?D.@ 3.A / =># ?4 @.3 @.6 7.D :>4 @.7 5.> >.? /5.A 3.3 :>/ ?.7 6.@ A.> 6.> />= =>? ?D.@ 7.D D4.? 53.7 14>@ 4.> 4.A 4.> A.6 A.D 1 D.5 D.6 D.@ D7.@ />/ /># 3.D 7.5 /5.A NA NA 5.D 4 A.@ 4 NA NA 6.7 D.@ 5 NA NA 5.7
Note - T - Provisional. NA - Not Availa$le. Growth rates are $ased on consum tion e'cludin& rivate arties9 im orts. "ource- Ministry o% Petroleum O Natural Gas) Govt. o% India ) ;downloaded %rom www.indiastat.com=
36
Ta*le C@: Per Capita Con%u$ption o& Sele,te' Petroleu$ Pro'u,t% in In'ia
;in E&s.=
Year ?>3A/3@ ?>3@/37 ?>37/33 ?>33/3> ?>3>/>4 ?>>4/>? ?>>?/>D ?>>D/>5 ?>>5/>6 ?>>6/>A ?>>A/>@ ?>>@/>7 ?>>7/>3 ?>>3/>> ?>>>/44 D444/4? D44?/4D D44D/45 D445/46 D446/4A D44A/4@ D44@/47T
Nap)t)a 6.D 6.D 5.@ 6.5 6.? 6.? 6.? 6 5.3 6 6 6.6 6.> @.6 3.? 7.3 7.> ??.A 7.? ?5.@ ??.? ??.5
M>S> 5 5.D 5.@ 5.> 6.D 6.D 6.D 6.D 6.A 6.> A.? A.D A.6 A.7 @ @.6 @.3 7.5 7.7 3 7.> 3.D
S7O 3.5 3.@ >.? >.3 ?4 ?4 >.> ?4 ?4.5 ?4.@ ?4.D >.@ ?4.5 ?4.> ?4.> ?4.6 >.3 ?4.? >.D >.? 3.7 3.6
HSDO ?>.7 D4.@ DD.5 D5.3 DA.D DA D@.> D3.7 54.@ 55.6 5A.D 5@ 57.3 53 64 5@.> 5A.@ 5A.A 5A.> 53.A [email protected] 57.>
LDO ?.A ?.A ?.@ ?.3 ?.3 ?.3 ?.7 ?.7 ?.@ ?.@ ?.6 ?.5 ?.5 ?.5 ?.A ?.6 ?.@ D ?.? ?.6 4.3 4.@
F>O>-Re2ular0 A 6.> A.5 A.3 A.A A.5 A.3 @.D A.> @.> 7.? 7.? 7 @.7 @.> @.D 3.D 7.3 7 3.> 3.? 3.D
LSHSAHHS A.5 A.A A 6.> A.5 A.6 A 6.7 6.> 6.3 6.@ 6.7 6.A 6.7 6.> 6.> 6.6 6.@ 6.A 6.5 5.@ 5
In'ia.TotalL Sale%A Con%u$ption A7.5 A>.5 @D @5.7 @>.? @3.6 74.@ 7D.> 7A.D 3?.? 7>.D [email protected] >4.? >D.D ?4D ?45.7 >7.3 ?43.? ??D.> [email protected] ???.7 ??A.A
V - All India actual consum tion o% all roducts incl. Re%. Fuel O International Bunkers u to the year ?>>A/>@. Later on total consum tion includes im orts %rom Pvt. Parties and 8'cludin& RBF. T - Provisional. "ource- Ministry o% Petroleum and Natural Gas. Government o% India) ;downloaded %rom www.indiastat.com=
Ta*le C/: Se,tor.(i%e -En' U%e0 Con%u$ption o& Sele,te' Petroleu$ Pro'u,t% in In'ia
; P 444 tonne=
Petroleu $ Pro'u,t Gi&h " eed Diesel 1il
Year ?>>?/>D ?>>D/>5 ?>>5/>6 ?>>6/>A ?>>A/>@ ?>>@/>7 ?>>7/>3 ?>>3/>> ?>>>/44 D444/4? D44?/4D D44D/45 D445/46 D446/4A D44A/4@
Tran%port D4D3D D?7D@ D54A> D676D D3456 D4D7@ D4@@D D?5@7 DD53@ DD?>7 D?@@D D?35D D?77D DDA4A D?A73
Plantatio n 56@ 533 6>6 @D? 73> @735 @3>? @7A4 7A>5 76>7 7DD7 7D73 7D?4 767> 74?A
Po(er Mi%,ellan 9eneratio In'u%try eou% n Ser6i,e% ??4 ?6?@ AD@ ?43 ?63> A3D ??A ?A?D @>3 DD> ?735 33@ ?@7 D53@ 373 DD36 5@43 D4@3 D5>4 5365 DD3A DA7@ 6DA6 DD74 D@DD 53>4 D7>@ DA>@ 5?5D DA?@ DA4> D@37 D654 D6>7 DA63 D57> DAD@ D66D D>DA D7@> DA5@ D7>3 D@35 D66@ DA3@
Pri6ate Sale% / / / / 7 / / / 3 D4 5? ??4 ?>> ?A@6 53?@
Total DD@34 D6D>5 DA373 D3D@? 5DD@? 5A4?> 5@47? 57D?7 5>D>A 57>A3 5@A6@ 5@@66 57476 5>@A? 64?D6
37
Li&ht Diesel 1il
Furnace 1il
Low "ul hur Geavy "tock
D44@/ 47;P= ?>>?/>D ?>>D/>5 ?>>5/>6 ?>>6/>A ?>>A/>@ ?>>@/>7 ?>>7/>3 ?>>3/>> ?>>>/44 D444/4? D44?/4D D44D/45 D445/46 D446/4A D44A/4@ D44@/ 47;P= ?>>?/>D ?>>D/>5 ?>>5/>6 ?>>6/>A ?>>A/>@ ?>>@/>7 ?>>7/>3 ?>>3/>> ?>>>/44 D444/4? D44?/4D D44D/45 D445/46 D446/4A D44@/ 47;P= ?>>4/>? ?>>?/>D ?>>D/>5 ?>>5/>6 ?>>6/>A ?>>A/>@ ?>>@/>7 ?>>7/>3 ?>>3/>> ?>>>/44 D444/4? D44?/4D D44D/45 D445/46 D446/4A D44A/4@ D44@/
D?@?? 34 3A 3D 35 @3 @@ @6 @5 A> A3 A5 64 A7 6> 6> A5 565 55> 64A 664 5D? 5A? 5?A 56> 5A? 5?3 543 D@5 55> DA? D7@ ?5 DD ?4 ?D D 5 5 5 A 7 ? / / / / 4 4
7>?6 57 5A 5@ 5A 6? 56 56 6? 67 6@ A? A@ 6@ 57 D3 ?54 ?@6 ?>4 ?3@ ?33 D?6 DA4 D76 5?> D3@ D7@ 5DD 57@ DA? TT TT 6> D> 5A 64 D7 5D DA D? 65 D7 DD D? 66 A / 4 4
D3>6 D5@ D?? ?>4 ?@> ?@@ ?36 ?3> ?74 ?7@ D?A ?@A ?75 ?67 33 @A @7 AD7 AAA 6>4 A34 7D4 7@6 A6> A7? A?A 63? AA? 633 57? 5?6 DA6 ?35A ?7>3 ?77> ?@7@ ?@D6 ?767 ?@56 ?@?6 ?D>7 ?5@5 ?@A7 ?645 ?@5> ?A@> ?D53 A@4 D>3
A?43 @66 @67 @DA @6? 744 @55 @D@ @6@ 7@> @3? @D? 7A6 7D7 @D3 6DD ?55 5@>D 5>@D 5@45 5>66 635@ 6@>? 63@A 63D6 6>4? 6A65 A4A7 67?6 65@6 ?765 >75 D@4A D55A D?DD D5@@ DDA3 DD6@ D634 D63D D>34 545@ D>63 D75A D@>6 DD@5 ?6A5 ?5>4 ?5A3
54>? 6@A 6D> 657 66? 55@ 54@ 5DD 5A3 6@? 5>> 5?D 5>4 DA4 D>4 D74 557 D?? DD7 56D @3A 64A 673 @63 746 7@5 7A5 367 ??44 ?33? A767 A@44 DD 3? 63 7D ?6? ?@? ?7? D45 D?D 554 5@? 57D 556 7>@ ?7?5 ?>A7 ?74A
DD63 / / / / / / / / / / 5>4 @A4 5>D D>? 6> 4 / / / / 67A @@4 A?7 ?D4@ 376 ?D>5 ?5@@ ?43@ ??4A ?4>> ?435 / / / / / V V V V V V V V V V V V
6D3@@ ?6@D ?647 ?574 ?5@> ?5?? ?DD5 ?D5A ?D73 ?A?D ?5>> ?A>D D4@5 ?@?> ?67@ 335 7D4 6>57 AD75 A4D@ A357 @>7? 7?>6 7?@3 7>75 7@>4 7@@6 36A? 34D7 35?? >?A6 3?3@ 6AD6 6D@A 5>>6 6?@@ 64AD 6?3> 65?5 65D5 6A57 67@5 6>3> 6A5? 67?? 6@55 6646 5>47 55@?
3.
47;P=
A$$r. - ;P= - Provisional. Note - V - L"G" sales throu&h vt. arties included in Furness 1il sales. TT - Included in Miscellaneous services. Breaku not availa$le. "ource - Ministry o% Petroleum and Natural Gas. Government o% India) ;downloaded %rom www.indiastat.com=
D>
I$port%
Ta*le D1: Net I$port o& Cru'e Oil an' Petroleu$ Pro'u,t% *y In'ia
;Nty. P 444 #onnes) 0alue- Rs in 2rore=
Year ?>>4/ >? ?>>?/ >D ?>>D/ >5 ?>>5/ >6 ?>>6/ >A ?>>A/ >@ ?>>@/ >7 ?>>7/ >3 ?>>3/ >> ?>>>/ 44 D444/ 4? D44?/ 4D D44D/ 45
Cru'e Oil Muantity Dalue D4@>> D5>>6 D>D67 543DD D756> D756D 55>4@ 566>6 5>343 A734A 764>7 7374@ 3?>3> @??3.6D 73D4.4A [email protected]@ [email protected] [email protected] ??A?7 ?3A53.?> ?A37D ?6>?7 644D3 @A>5D @45>7 7@?>A
Petroleu$ Pro'u,t% Muantity Dalue @4?D @A4> 7A@6 346D ?4@>7 ?@>44 ?7?45 D4A3> D54AD ?A3@D >4D /54A@ /54@? 5@[email protected] 6445.@D 67A5.5D AA5D.@D A>56.55 ?476A.37 ?5A63.7? ?5465 ??>74 ?5633 66D? />74 /D4D?
Total Muantity Dalue D@7?? 54A45 5@3?? 533@6 5346@ 66D6D A?44> AA435 @D3@4 75@@7 76>>> 7A@A4 73>D3 >776.@> ??3D5.@7 ?A65>.?3 ?@DD?.?6 [email protected]@ [email protected] 5D43@.> D3>?A D@337 A5A?@ 745A5 A>6D7 76?76
Note - T - Provisional. - W - MM# "ource - Ministry o% Petroleum and Natural Gas. Government o% India) ;downloaded %rom www.indiastat.com=
Ta*le D : 9ro%% I$port o& Cru'e Oil an' Petroleu$ Pro'u,t% in In'ia
;Nty. P 444 #onnes) 0alue - Rs in 2rore=
Ite$ A> Cru'e Oil 3> Petroleu$ Pro'u,t% I> Li2)t Di%tillate% LPG M" Na htha Pro aneLM#B8 II> Mi''le Di%tillate%
!!/.!4 Mty> Dalue #4?=1 11:!!@ 4@#1 D556 D55 DD?6 @?4 1! : ## 66?5 A4? 64D> ?454 !/:
!!4.!= Mty> Dalue ##/!# 1:1:! =!:/ D7?> 63A D675 5>7 1=14 1/41/ @A7> ?D35 A75A >?7 @#/?
!!=.!: Mty> Dalue 11!?4? 1###1 ?=41 DD33 6D? A676 6@3 @// @!#: A73D ?5D@ ?6374 ???> =?1/
!!:.!? Mty> Dalue 1 1=: :=## #/= D3D> 5D@ A>@A 56D 4/ / #!1! 3A@5 ??5D ?364? >?6 1:4!:
3:
A#F "E1 G"D 1thers III> Hea6y En'% F1LL"G" Lu$esL1thersG8I Total 9ran' Total
5 D?4 3?6 4 /1! 76? ?@@> ?? ? 1!/=?#
?6 6D> ?@46 4 ?=? @>D D?7@ 1/??? 1@1?#1
D 33? 75D 4 @#?? 73> 5?>> 11=:: 111!?=
?? DD?6 ?7D5 4 :11@ ?4>> @4?6 44:4 1#: ::
D ?6D6 >?3 4 4#:1 >3@ 6>3A 1=#== 1 :? /
?7 6DA4 DA67 4 1!/:? ?637 3>>? /!@?# =!@?!
5 D63> D>5D / :?@! ?D6? @A3> :1= 1//@??
D4 35D6 >?@5 / ## = D544 D7@D7 :=//@ @/#1/
T - Provisional Note - G8I - Includes Bitumen) Lu$e 1il Base "tock)) Low "ul hur Ca'y Residue) 2ar$on Black %eed "tock) Ru$$er Processin& 1il and Para%%in Ca'. "ource - Ministry o% Petroleum and Natural Gas. Government o% India) ;downloaded %rom www.indiastat.com=
Ta*le D@: Muantu$ an' Dalue o& Cru'e Oil I$porte' *y Pu*li, Se,tor Oil Re&inin2 Co$panie% an' Pri6ate Oil Re&inin2 Co$panie% in In'ia
;Nty. - in Million Metric #onne( 0alue - Rs. in 2rore=
Year
I$port% *y PSU% Muantity @> 77.A [email protected] Dalue ?D5A54 ?A7@3> ?743D6
Pri6ate Co$panie% Muantity 54.6 56 56.@ Dalue 63?7D @?564 7D53D
D44A/4@ D44@/47 D447/43T
"ource- Lok "a$ha "tarred Nuestion No. 57D) dated on ?7.46.D443. ;downloaded %rom www.indiastat.com=
E>
E+port%
Ta*le E1: E+port o& Cru'e Oil an' Petroleu$ Pro'u,t% &ro$ In'ia
;Nty. P 444 #onnes) 0alue - Rs in 2rore=
Year ?>>4/>? ?>>?/>D ?>>D/>5 ?>>5/>6 ?>>6/>A ?>>A/>@ ?>>@/>7 ?>>7/>3 ?>>3/>> ?>>>/44 D444/4? D44?/4D D44D/45 D445/46 D446/4A D44A/4@ D44@/47T D447/43T ;A ril/"e t.=
Cru'e Oil Muantity Dalue / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / /
Petroleu$ Pro'u,t% Muantity Dalue D@63 ?445.>6 D>5@ ?D?6.@A 57?> ?@[email protected] 6456 ?A43.3? 5DA6 ?A37.5@ 565A ?35?.>3 5?@D D436.73 D53? ?D@@ 7D4 54@ 76@ @>3 35@A 7@7D ?44@A 3D?> ?4D3> ?43@3 ?6@D4 ?@73? ?3D?? D>>D3 / / / / / /
Total Muantity Dalue D@63 ?445.>6 D>5@ ?D?6.@A 57?> ?@[email protected] 6456 ?A43.3? 5DA6 ?A37.5@ 565A ?35?.>3 5?@D D436.73 D53? ?D@@ 7D4 54@ 76@ @>3 35@A 7@7D ?44@A 3D?> ?4D3> ?43@3 ?6@D4 ?@73? ?3D?? D>>D3 D?.A?W 6@7D4 5D.5>W 34?7D ?>.>4W 6>>3?
Note - T - Provisional. - W- MM# "ource - Ministry o% Petroleum O Natural Gas) Govt. o% India. ;downloaded %rom www.indiastat.com=
4$
Ta*le E : 9ro%% E+port o& Cru'e Oil an' Petroleu$ Pro'u,t% &ro$ In'ia
;Nuantity - P 444 #onne( 0alue - Rs. in 2rore=
Ite$ Cru'e Oil Petroleu$ Pro'u,t% I> Li2)t Di%tillate% LPG M" Na hthaL NGL #AM8 Re%ormate Mo&as 1thers II>Mi''le Di%tillate% "E1 G"DLLD1 A#F 1thers III> Hea6y En'% F1LL"G" 0G1LLu$es 2okeLBitumen 1thers Total
!!!.!1 Mty> Dalue
!! .!@ Mty> Dalue
!!@.!/ Mty> Dalue
!!/.!4 Mty> Dalue
!!4.!= Mty> Dalue
!!=.!:G Mty> Dalue
/
1
/#@4
//#@ 4 D55@ D4@7 >4 4 4 4 @?:4 4 5?73 @>7 / 1# 1 ??D4 ?4? 744 / 1! ?#
4/:4 4 54?? D5DA ?5> 4 4 4 /@@: 4 5A67 7>4 / 1!4= >4D ?4> 6A / 1!?=?
4//? 4 D>7> D?7@ 35 D?4 4 4 :?/1 4 @?3? ?@@4 / 1@@1 ?5?4 ?7 6 / 1/= !
:1!! 4 64D? D@A5 ??7 54> 4 4 ?:1@ 4 @7@5 ?>A4 / #=? >D3 5@ 6 / 1=:?1
= ?? ?6A D3>7 D>D@ 4 5D4 4 4 ## D47 7D3@ D634 / 1#4! ?7>D ?4D A@ / 1? 11
1141 54@ A@DA A454 4 AA? 4 4 1==#! 6@4 ??73D 6663 / 1: = ?A?7 ?57 7D / ## ?
:4=4 A5 DD75 6>>@ ?4 D55 4 4 11@== ?D? 36@6 D73? / 4:= ?34? 74? 76 / 14!:
1:!@ ?@6 AA7> ?4@76 DA A>4 4 4 =14 57? ?37>3 @>35 / @4@= DD6@ ?D4A 36 / /=: !
1
#= 3@ 5@>@ 3543 4 D4@ 4 4
@ =/: D37 ?4A53 D?D4A 4 @?7 4 4 /!??@ A6? 5446A ?4D>7 / ==/ 6>33 @44 ?4A6 / ?!1:
D33D ?57 ?D4D 4 1:4: ?A>7 ?@4 @?: A43 ?37> 4 ?37> ?@=4
5D75 DD4 ?66D 4 !/= ?37D ?76 =#1 5D4 57? 4 57? :=:
14/4: ?A4 ??@6A 5@@D / /=/1 57A> D>A A37 / @ @#/
A$$r. - #AM8 - #ertiary Amyl Methyl 8ther. Note - T - Provisional. "ource - Ministry o% Petroleum O Natural Gas) Govt. o% India. ;downloaded %rom www.indiastat.com=
41
Ta*le E@: Petroleu$ Pro'u,t% E+porte' *y PSU% an' Pri6ate Co$panie% &ro$ In'ia
; in S444 #onnes=
-April !!/ to January !!40 Pro'u,t% PSU% Pri6ate Co$panie% Petrol 73 DD3@ Na htha DDA4 ?DA G"D ?446 63AD Lu$esLL1Bs ? 4 Fuel 1il ?64A 4 0acuum Gas 1il A6 65 AF# >4@ ???@ "E1 4 ?? Re%ormate 547 4 Bitumen 55 4 Para%%in Ca' > 4
"ource- Lok "a$ha "tarred Nuestion No. 5?4) dated on D6.45.D44A. ;downloaded %rom www.indiastat.com=
F>
Sale% an' Mar8et%)are%
Ta*le F1: Sale%ACon%u$ption o& Petroleu$ Pro'u,t% an' Mar8et%)are o& Oil Co$panie% in In'ia
;Nty. P 444 tonne=
Year
I SAC "L2 Q "L2 Q "L2 Q "L2 Q "L2 Q "L2 Q "L2 Q "L2 Q "L2 Q "L2 Q "L2 Q "L2 Q
I>O>C 5D5@D [email protected] 5D>4@ AA.> 55A4? AA.? 5@5A> A5.> 5>3A3 A5.5 6D4A6 A5.? 656@A A?.@ 6A63> A4.D 6>5>? A4.> 673?D 67.3 67?A? 6@.> 6@55@ 66.A
3> S)ellA 3PCL ?4@33 ?3.3 ??64> ?>.6 ?D4>> ?>.> ?5?@4 ?>.A ?67@5 ?>.7 ?A75D ?>.> ?@5A@ ?>.6 ?766A ?>.5 ?33>6 ?>.A ?>5@3 ?>.6 ?>467 ?> ?>365 ?>.?
E%%oA HPCL ??467 ?>.6 ??A?? ?>.A ?D4?? ?>.3 ?DA33 ?3.@ ?6?A? ?3.> ?A6@4 ?>.A ?@444 ?> ?@D6> ?7.> ?76>7 ?3 ?7337 ?7.> ?76>> ?7.6 ?3DD3 ?7.A
Calte+A HPCLL -DMU0 / / / / / / / / / / / / / / / / / / / / / / / /
I3P D6>3 6.6 D@3@ 6.@ D3@4 6.7 D>>4 6.6 5D75 6.6 567? 6.6 5A>7 6.5 577D 6.D 6?55 6.5 5>A> 6 5767 5.7 57@> 5.@
Ot)er% CO% 57> 4.7 5>4 4.7 56? 4.@ 5>4 4.@ 675 4.@ A47 4.@ 6D4 4.A ?3?? D 75@ 4.3 >@4 ? ?@63 ?.@ ?>63 ?.>
?>>?/>D ?>>D/>5 ?>>5/>6 ?>>6/>A ?>>A/>@ ?>>@/>7 ?>>7/>3 ?>>3/>> ?>>>/44 D444/4? D44?/4D D44D/45
I$port% *y P6t> Partie% / / / / / / D4D7 5 D5?5 5.? ?>66 D.A 66AD A.5 A7>@ @.6 @65A @.@ ?4433 ?4.? ??564 ??.5 ?644D ?5.6
Total A@>76 ?44.? A3>4D ?44.? @43?D ?44.? @7A?6 ?44 7635? ?44 7>?@3 ?44 36D>4 ?44 >4A@D ?44 >743@ ?44 ?44476 ?44.D ?4465D >>.> ?46?D@ ?44
42
D445/46 D446/4A D44A/4@ D44@/ 47W
"L2 Q "L2 Q "L2 Q "L2 Q
6@773 65.6 634?3 65 6@?@4 64.3 A56DA 66.D
D4D>7 ?3.3 D4@>7 ?3.A D4677 ?3.? DD@@? ?3.3
?3A77 ?7.D ?>4>? ?7.? ?354> [email protected] ?>@>3 [email protected]
/ / / / / / / /
6?@D 5.> 6A>6 6.D 65?@ 5.3 J
D5?@ D.? D?>5 D D664 D.D D?A@ ?.3
?A@D? ?6.A ?746? ?A.5 D?A?? ?> DD34>T ?3.>
?477A? ?44 ???A>D ?44 ??5D?5 ?44 ?D476> ?44
"L2 - "alesL2onsum tion. Note - V - Included under 8ssoLGP2L %rom ?>34/3? 1nwards. - 2onsum tion e'cludes RBF. W - Provisional J - IBP has $een mer&ed with I12. T - Private consum tion %i&ures includes im orts also.
"ource- .Ministry o% Petroleum O Natural Gas) Govt. o% India. ;downloaded %rom www.indiastat.com=
Ta*le F :
StateACo$pany.(i%e Nu$*er o& Retail Outlet% o& Petroleu$ Pro'u,t% in In'ia -A% on !1>!/> !!?0 IOCLAAOD ?5>? 6@ 664 3A6 D?5 D4? D? >?6 3@3 ?A3 ?7A 553 ???5 7@? 7A5 ??>6 A5 >6 ?> 6? 6>4 ?65@ ?43@ ?6 ?53A 53 D56@ HPCL 7A5 4 @? DAD ?57 >@ 5? 646 557 @5 >> ?@5 AD6 6@@ 574 337 4 ?@ D D ?35 @55 @A6 5 75> 4 >?@ 3PCL 74@ ? DD D>A ?63 ?4A 5> 655 DA6 AD >4 ?63 A?> 53? 67D ?4?4 D @ 4 5 D53 A66 A6@ ?? 77> 4 >?@ Total D3A4 67 AD5 ?64? 6>3 64D >? ?7A? ?6A> D75 5@6 @6> D?A@ ?@43 ?A>A 54>? AA ??@ D? 6@ >?? D@?5 DD3@ D3 D>46 53 6?73 IOCLAAOD >AD 5> 577 AA? ?A5 ?AD ?3 @6A A3A ?D6 ?A6 D5> 3A3 AD5 @4D >?5 6D 7A ?A 57 5A? >DD 33@ ?D ?453 5@ ?7D3 -A% on !1>!/> !!:0 I3P 5@5 D D@ DD5 6? 67 5 D64 DD6 D3 ?4 @7 ?3? ?>D >? D?? A > 4 D 76 6D@ ?5? D D5@ ? 63? HPCL 7?A 4 @? DD7 ?64 >A 5? 5>5 547 @D >@ ?A3 676 66A 5A4 3@6 4 ?A D D ?@6 A77 @D6 5 7?6 4 374 3PCL @A5 ? ?A D3D ?57 ?4A 57 6D5 D53 A4 33 ?6A 63? 5@@ 666 >74 4 A 4 D D5? AD? A4@ ?4 7?D 4 3>4 Total D@35 6D 67> ?D35 67? 5>> 3> ?74? ?5A6 D@6 563 @4> ?>>6 ?AD@ ?637 D>A3 67 ?46 ?7 65 3D4 D66@ D?67 D7 D744 57 5>@>
State%AUT% Andhra Pradesh Arunachal Pradesh Assam Bihar 2hhatis&arh Delhi Goa Gujarat Garyana Gimachal Pradesh Mammu O Eashmir Mharkhand Earnataka Eerala Madhya Pradesh Maharashtra Mani ur Me&halaya Miram Na&aland 1rissa Punja$ Rajasthan "ikkim #amil Nadu #ri ura Bttar Pradesh
43
Bttaranchal Cest Ben&al UT% Andaman O Nico$ar 2handi&arh Dadra O Na&ar Gaveli Daman O Diu Lakshadwee Pondicherry In'ia
?33 >45 @ DD 7 > 4 6> 1:= :
>@ 53> 4 ?? 5 5 4 5@ ?@ #
73 643 4 ?4 ? 5 4 ?3 ? @?
5@D ?744 @ 65 ?? ?A 4 ?45 @/1#/
?66 @4? A ?3 7 @ 4 55 1 ?/1
5A DD5 4 6 4 D 4 ?4 @4#!
>A 57@ 4 ?? 5 D 4 55 :#!#
74 53> 4 ?4 ? 5 4 ?A :?!!
566 ?A3> A 65 ?? ?5 4 >? @ 1/!
A$$r. - I12LLA1D - Indian 1il 2or oration LimitedLAssam 1il Division. IBP - IBP 2o. Limited. GP2L - Gindustan Petroleum 2or oration Limited. BP2L - Bharat Petroleum 2or oration Limited "ource- .Ministry o% Petroleum O Natural Gas) Govt. o% India. ;downloaded %rom www.indiastat.com=
Ta*le F@: Sele,te' State.(i%e Nu$*er o& Retail Outlet% Set up *y Pri6ate Oil Co$panie% -Relian,e" E%%ar an' Nu$ali2ar)0 in In'ia A% on @1>1 > !!/ State%AUT% MA% Relian,e In'u%trie% Lt'> / A> D7 3 / / 55 / ?> 5A D D4 / ?4 D ? D D4 @ / 54 / / / MA% E%%ar Oil Lt'> / @3 ?@ ?@ / / @@ / ?? @ ? 7 / / / / / ?A ?6 / ?4 / / / MA% Nu$ali2ar) Re&inery Lt'> ? / / / 6 / / / / / / / / / / / / / / / / / / / D? / ?4 / ?5 / / / / D / / / D ? ? / / 3 ? @ D A ? No o& R>O% @1>!:> !!:
Assam Gujarat Rajasthan Madhya Pradesh Me&halaya 2hhatis&arh Maharashtra Goa Earnataka Andhra Pradesh Eerala #amil Nadu Pondicherry Cest Ben&al 1rissa Bihar Mharkhand Punja$ Garyana Delhi Bttar Pradesh Na&aland Mani ur Arunachal Pradesh
44
Bttaranchal In'ia
/ :/
/ @!
/ 4
? :/
"ource-"ource - Lok "a$ha Bnstarred Nuestion No. D5@>) dated ?7.45.D44A O Rajya "a$ha Bnstarred Nuestion No. A4@@) dated ?4.4A.D44A. O Lok "a$ha Bnstarred Nuestion No. 745) dated [email protected]. ;downloaded %rom www.indiastat.com =
9>
Pri,e%
Ta*le 91: MaBor City.(i%e Retail Sellin2 Pri,e% o& Petrol an' Die%el in In'ia ;Rs.LLitre= -A% on !1>!/> !!:0 MaBor City Petrol Die%el Nort) New Delhi 6D.3A 54.DA 2handi&arh 66.4> 54.@5 Dehradun 66.A3 5D.7 Mai ur [email protected]> 55.47 Mammu 66.73 54.>> Lucknow [email protected]? 55.@A "himla 6A.@3 5?.53 "rina&ar 6@.?? 5?.>D Ea%t Eolkata 6@.> 5D.33 A&artala 6D.37 54.6 Ai:wal 6D.@> 54.D7 Bhu$aneshwar 66.AA 55.A Gan&tok 6A.@7 55.D6 Guwahati 6A.AD 5?.5> Im hal 6D.?@ 54.?7 Itana&ar 6D.>5 54.65 Eohima 65.5? 54.63 Patna [email protected] 5D.>7 Port Blair 57.36 D>.DD Ranchi 65.>@ 55.4? "hillon& 65.?> 54.A7 <e%t Mum$ai 63.6? 56.>@ Ahmeda$ad 67.76 5A.D? Bho al 6@.>> 56.3 Panjim 66.5@ 55.?> Rai ur 66.3D 56.?5 Sout)
45
2henni Ban&alore Gydera$ad Pondicherry #rivandum Ma+i$u$ Pri,e 3an2alore Ma+i$u$ Pri,e Port 3lair Di&&eren,e
67.63 A4.@D 63.3D 6?.AD [email protected] 4!>= @:>?/ 1 >:?
55.5? 5A.DA 55.3? 5?.67 55.75 @4> 4 #> =>!@
"ource - Rajya "a$ha Bnstarred Nuestion No. 65>D) dated ?A.4A.D447. ,downloaded from www.indiastat.com -
Ta*le 9 : Con%u$er an' Pro'u,er Pri,e% o& Natural 9a% in In'ia
;Rs.L P 444 2u$ic Metre=
Con%u$er Pri,e% E&&e,ti6e Date o&&.%)ore -Lan'&all Point0 an' On.%)ore D3A4 D3A4 D3A4 D3A4 D3A4 D3A4 D3A4 D3A4 D3A4 D3A4 D3A4 D3A4 D3A4 D3A4 D3A4 5D44 5D44 For Nort) Ea%tern State% Tran%portatio n C)ar2e% alon2 HDJ Pipeline
Pro'u,er Pri,e% OIL ON9C -Nort) -Nort) Ea%ter ON9C Ea%ter n n State%0 State0G G D??@ D476 D??3 D?5D DD4@ D?7@ DD64 DDD6 DDD6 D?57 D?7@ D?>6 D?D4 D?65 D536 5?@3 5?57 ?744 ?744 ?744 ?744 ?744 ?744 ?744 ?744 ?744 ?744 ?744 ?744 ?744 ?744 ?744 ?>D4 ?>D4 ?>44 ?>44 ?>44 ?>44 ?>44 ?>44 ?>44 ?>44 ?>44 ?>44 ?>44 ?>44 ?>44 ?>44 ?>44 5?@3 5?57
Calori&i, Dalue -7>CalASCM0
4?.46.D44 D 4?.47.D44 D 4?.?4.D44 D 4?.4?.D44 5 4?.46.D44 5 4?.47.D44 5 4?.?4.D44 5 4?.4?.D44 6 4?.45.D44 6 4?.46.D44 6 4?.47.D44 6 4?.4>.D44 6 4?.?4.D44 6 4?.4?.D44 A 4?.46.D44 A 4?.47.D44 A 4?.?4.D44
?744 ?744 ?744 ?744 ?744 ?744 ?744 ?744 ?744 ?744 ?744 ?744 ?744 ?744 ?744 ?>D4 ?>D4
??A4 ??A4 ??A4 ??A4 ??A4 ??A4 ??A4 ??A4 ??A4 ??A4 ??A4 ??A4 ??A4 ??A4 ??A4 ??A4 ??A4
?4444 ?4444 ?4444 ?4444 ?4444 ?4444 ?4444 ?4444 ?4444 ?4444 ?4444 ?4444 ?4444 ?4444 ?4444 ?4444 ?4444
46
A 4?.4?.D44 @ 4?.46.D44 @ 4?.46.D44 7 4?.46.D44 3
5D44 5D44 5D44 5D44
?>D4 ?>D4 ?>D4 ?>D4
??A4 ??A4 ??A4 ??A4
5??3 5D44 5D44 5D44
?>D4 ?>D4 ?>D4 ?>D4
5??3 5D44 5D44 5D44
?4444 ?4444 ?4444 ?4444
A$$r. - 1NG2 - 1il O Natural Gas 2ommission. 1IL - 1il India Ltd. Note - T - w.e.%. 4?.?4.?>>7 &as rice alon& G0M Pi eline includes Rs. ??A4 er ?444 "2M towards trans ortation char&es. #he trans ortation char&es alon& G0M i eline are $ein& increased $y ?Q %or every ?4Q increase in 2PI and are linked to the calori%ic value o% Rs. 3A44 E.2alL"2M. ? - #he 2onsumer rices are e'clusive o% Royalty) "ales #a' and other "tatutory Levies. Producer Prices are e'clusive o% Royalty. D - #he discount o% Rs. 644 er ?444 "2M was A lica$le in case o% &as rice %or North/8astern "tates u to 54.4>.?>>7 and at Rs. 544 er ?444 "2M w.e.%. 4?.?4.?>>7 %or 1NG2 had withdrawn this discount %rom #ri ura w.e.%. 4?.46.D44D and %rom Assam w.e.% 1cto$er D44D. 5 - 1ther #han G0M i eline) GAILLtrans orters are ermitted to ne&otiate trans ortation char&es with the consumers. 6 - C.e.% ?.7.D44A) the rice o% natural &as has $een revised %or Power) Fertili:er "ector) small consumers havin& allication u to 4.4A MM"2MD and consumers drawin& &as under su reme court orders vide ricin& order dated [email protected]. #he Revised rice is Rs. 5D44LM2M. A - C.e.% 4?.?4.?>>7 &as rice alon& G0M i eline includes Rs. ??A4 er ?444 "2M towards trans ortation char&es. #he trans ortation char&es alon& G0M i eline are $ein& increased $y ?Q %or every ?4Q increase in 2PI and are linked to the calori%ic value o% 3A44 E.2alL"2M. @ - Actual roducer rice o% 1il O 1NG2 %or sales in north/eastern re&ion is Rs. ?744LM2M at ?4444 EcalL"2M. Gowever) as er &as ricin& order dt. ?3th "e tem$er ?>>7)%or concessional rice in the north/east )1il is to $e com ensated %rom the &as ool account at a roducer rice o% Rs. ?>44LM2M. #he roducer rice o% 1il increases $y ?Q %or every ?4Q increase in 2PI. "ource- .Ministry o% Petroleum O Natural Gas) Govt. o% India. ;downloaded %rom www.indiastat.com=
Ta*le 9@: Pri,e 3uil'.up o& Sele,te' Petroleu$ Pro'u,t% in Del)i" 7ol8ata" Mu$*ai an' C)ennai -A% on !1>!/> !!:0 Del)i [email protected] D 4 ?A.3@ ?4D.@3 D? 4.D7 ?@.>? 1?@/> = ?5?4.4@ @1//>@ /?@.>? 66
Ite$ Hi2) Spee' Die%el -R%>A7l0 "tora&e Point Price "tate "urchar&e BM2 "urchar&e "idin& 2har&e RlyL1ceanLFrei&ht RP1 "urchar&e RP1 2har&e ;8'cisa$le= Assessa$le 0alue adj. A%%e%%a*le Dalue Basic 8'cise Duty Su* Total Assessa$le 0alue adj. FD< 2har&es
7ol8ata [email protected] 544 4 44 4 D?.>5 D? 4.D7 4 !1?>:/ ?5D?.?D @@@#>?= 4 66
Mu$*ai [email protected] ?57 44 D>> 4 4 D? 4.D7 4 44 1@ >?1 ?5D7.>7 @/=!>:? 4 66
C)ennai [email protected] ?D4 4 44 4 4 D? 4.D7 4 1?1=>?1 ?54>.4? @1 4>? 4 66
47
Additional 8'cise Duty Basic 8'cise Duty Amount 8dn 2ess Su* Total Delivery 2har&es Beyond FD< RP1 Price "ales #a' Dealer 2ommission Sellin2 Pri,e R%>A7I Sellin2 Pri,e R%>ALtr Superior 7ero%ene Oil-R%>A7I0 8'/stora&e Point Price "tate "urchar&e BM2 "urchar&e "idin& 2har&es RlyL1ceanLFrei&ht A%%e%%a*le Dalue 8ntry #a' AmountL#N re$ate "ates #a' Su* Total . R%A7I Cholesales Mar&in #rans ort 2har&es <)ole%ale% Pri,eA7I Retailers Mar&in Leaka&e and other 8' enses Retail #rans ortation Roundin& o%% Sellin2 Pri,e R%>A7I Sellin2 Pri,e R%>ALtr ATF -Do$e%ti, Airline%0 Basic Price Inland Di%%erential "tate "urchar&e Frei&ht "idin& 2har&es Marketin& 2ost M"L 2ost A%%e%%a*le Dalue 8'cise Duty 8ducation 2ess V5Q on 8D #oll #a' Po%te' air&iel' pri,e per 7L -E+,lu%i6e o& Sale% Ta+ an' ot)er Le6ie%0 Furna,e Oil -R%>A7I0 8'/stora&e Point Price "tate "urchar&e Notional Railway Frei&ht A%%e%%a*le Dalue 8'cise duty X edu cess Total in,lu%i6e o& e+,i%e 'uty J e'u ,e%% "ales #a'
D444 ?DA4 [email protected] =44?> 1 4 [email protected]? [email protected]> AD> @! /#>## 1> : 7>@7 4 4 @.?D AD.A? ?! 4>=@ 4 5D?.45 ?@/=>=4 D46 D36.DA ??@/># ?34 4 4 7A.? #!#! #>!# D6374 A74 D 5D5.43 >.3A ?3A4 D4@ :?@!>#@ [email protected] @@.7> 4 @!1 />
D444 ?DA4 ?57.?5 =::1 ?5.66 D@7>6.66 6AAA.4A AD> @ ?:?>/# @ >?? 7>@7 @D 4 4 ?>.57 ?!/?>@: 4 5D?.>5 ?@:!>@1 D46 D45.5 ?:::>=1 [email protected] D4A.?3 ?54 4 # ?#> / #> # DA6?4 4 ?AD4 A>4.A> 4 5?44 D4@ @!? =>4# D6@@.?5 75.>3 4 @@@==>: ?74A4 ?4A [email protected]@ 1://1>@= D376.56 !@14>: 3?D.@5
D444 ?DA4 ?57.56 =?# >1 4 D@3>D.?D 7AD>.7> AD> @/#4!>#1 @/>#= 7>@7 6 @D 4 4 ?!@@ 4 5D?.5D ?@4/>@ D46 D65 ??!1>@ D43 53.D@ 4 D.6D #!4! #>!4 D6>74 4 A>4 ?44 4 ?7A4 D4@ :=1= DD4>.D3 @@.D3 4 #?#1>4= ?@@44 ?>?.@ 4 1=:#1>= [email protected]@ 1#44?>?= D666.3@
D444 ?DA4 [email protected] =44=>4# 4 D@[email protected]> @DDD.D? AD> @@@!:>? @@>@1 7>@7 ??5 4 4 4 ?!?! /A7@ 544.?@ :?!/>1= ?65 AD.DA :###>/1 5@4 54 4 4 ?@?#>/1 ?>@# DAD64 4 ?45D ?63.57 4 ?@A4 D4@ ? :=>@: DD@D.?? @7.3@ 4 @!=!=>@4 ?@>44 57A 4 1: :4 D36@.>D !1 1># DA?A.D6
4.
Total Li2)t Die%el Oil -R%A7I0 8'/stora&e Point Price "tale "urchar&e Notional Railway Frei&ht A%%e%%a*le Dalue 8'cise duty X edu cess Additional Levy alon&with cess Total In,lu%i6e o& E+,i%e 'uty J e'u ,e%% "ales #a' Total
11 ?>@ D?4>4 DA DA6.@5 1@=#>=@ 5AD?.7D DA7A :/==>@4 5655.D> @!?##>=/ D?4>4 574 564 1?!! 5A>D.@6 DA7A :#=:>=/ 67A6.A @ : >1/
!!@>:1 D?4>4 ?D?.D3 4 1 11> ? 56>A.@D DA7A : ?1># 56?4.D6 @!=# >1/
=@:>1= D?4>4 6AA 4 14/4 5AA4.@D DA7A :=:!>= @>?7.@A @/4??> :
Note - "ellin& rice %or "u erior Eerosene 1il is %or Pu$lic Distri$ution "ystem ;PD"=. "ource- .Ministry o% Petroleum O Natural Gas) Govt. o% India. ;downloaded %rom www.indiastat.com=
Ta*le 9/: <)ole%ale Pri,e In'i,e% o& Cru'e Oil an' Petroleu$ Pro'u,t% in In'ia
;Base- ?>>5/>6Y?44=
Pro'u,t% Li2)t Di%tillate% LPG Petrol Na htha Mi''le Di%tillate% Eerosene Aviation #ur$ine Fuel Gi&h " eed Diesel 1il Li&ht Diesel 1il Hea6y En'% Furnace 1il Lu$ricatin& 1il Bitumen All Co$$o'itie%
- !!!. !!1 an' !! . !!@ to !!:. !!?0 <ei2)t -I0 !!!.!1 !! .!@ !!@.!/ !!/.!4 ?.3575? 4.333?A 4.6?33A 4.@3>D3 4.?@>A5 D.4D456 4.?@4?A 4.6>55A 4.?@5@7 4.?6> 1!! D63.D ?A6.D D>6.7 D74.D ?66.D DD3.3 D5D.D D45.A ?6D.@ D45.A 14=>: D36 [email protected] [email protected] 5A>.7 ?5A.7 D75.A D55 ?7>.7 ?A6.7 D47.@ 1==>? D3A.A ?73.7 5?A.@ 5A>.D ?6>.5 544.6 D36.@ DD7.D [email protected] DA?.D 1?!>@ 5?@ D45.A 65D.? 5A7.> ?76.? [email protected] 5@@.5 [email protected] ?3>.5 [email protected] 1?#>4
!!4.!= 556.3 D5?.? A54.6 5A7.@ DD3.7 654.6 66A.5 567.6 ?>6.A D33 1#:>
!!=.!: 556.3 DA6.3 @?A.> 5A7.@ D@D.@ [email protected] 6>?.? 5>5.D D63.3 6D?.7 1!>/
!!:.!?G 556.3 D6D.5 @>6.6 5A7.@ D7D.7 6A?.@ 6>?.D 653.6 D7A 67> 14>:
Note - T - Provisional. "ource- .Ministry o% Petroleum O Natural Gas) Govt. o% India. ;downloaded %rom www.indiastat.com=
Ta*le 94: Duty Stru,ture o& Central 9o6ern$ent on Petroleu$ Pro'u,t% in In'ia -A% on No6e$*er" !!:0 3a%i, Central Cu%to$% E+,i%e Duty Duty AQ 7.A4Q 7.A4Q ?4Q AQ Nil Nil @QXRs. ALlitre @QXRs. ?.DALlitre [email protected] ?@Q Nil Ce%%ASpe,ial A''itional E+,i%e Duty Rs. DA44 er tonne Rs.D er litreX Rs. @ er litre Rs. DLlitre / / /
Ite$%
2rude Petrol ;M"= Diesel ;G"D= LD1 Na htha LPG domestic
4:
LPG "E1 PD" "E1 LNG 1ther Products
AQ Nil ?4Q AQ ?4Q
3Q Nil ?@Q Nil ?@Q
/ / / / /
"ource - Rajya "a$ha "tarred Nuestion No. 77) dated on D4.??.D447. ;downloaded %rom www.indiastat.com =
Ta*le 9=: Reali%ation o& E+,i%e an' Cu%to$ Dutie% &ro$ Cru'e Oil an' Petroleu$ Pro'u,t% in In'ia
;Rs. in 2rore=
A,tual% Pro'u,t E+,i%e Dutie% Motor " irit Eerosene 1il Re%ined Diesel 1il Diesel 1il ;N8"= Furnace 1il Pol. Products ;N1"= Petroleum Gases 2ess on crude oil Total Cu%to$ Dutie% 2rude Petroleum Petroleum Products Total 9ran' Total 1##!.#1 1###.!! !!!.!1 !!.! !! .!@ !!@.!/ !!/.!4 !!4.!= !!=.!: !!:.!?
?D4D DAA @>5 5A 6> 6D? @@ D7A7 4/:? 5?6A >D4 /!=4 #4/@
A4?3 D6> @7@> ?D55 @?@ D7?A 5A> 5D65 ! ! @DA7 @D45 1 /=! @ ==
A6D@ 7DA 3?67 ??46 >3? 5573 ?D>@ 5@4@ /==@ 77>6 56AA 11 /# @4#1
3A4? @>> ??4D3 ??7> 77> D373 ?A6D D75? #@@: 63?3 ?>6> =:=: @=1!/
??A@5 ?5>4 ?4A74 ?453 >7? 5635 D66A 6A4? @4#=1 @3D4 D56@ #1== /41 :
?DA7A ?744 ?5674 >>D 3DD D>4@ DAAD A?56 /!141 76>? 54>? 1!4? 4!@
?57>D ?D75 ?66AA ?D6@ >>@ 57?? D6D6 AD63 /@1/4 >7@? 563> 1@ 4! 4=@#4
?7AA6 D?D D?775 A4A ?7A@ 6@D5 5?> A447 41:/# 7?A3 6D5@ 11@#/ =@1/@
?3545 D5@ D6@7D 53> ?377 6>?> 6A6 7456 4:??/ 7A35 @6D@ 1/!!# :1?#@
D4?4D D6? D5363 54@ ?>3A @5?5 A74 @3@@ =! @1 >?4? >46? 1?1/ :?@
Note - Fi&ures Rounded to Nearest 2rore. T - Provisional. "ource - Ministry o% Petroleum O Natural Gas) Govt. o% India. ;downloaded %rom www.indiastat.com=
Ta*le 9:: C)an2e Ma'e in Central E+,i%e an' Cu%to$ Duty Stru,ture o& Cru'e an' Petroleu$ Pro'u,t% in In'ia Ite$ E+,i%e Duty As on 4?.45.D44D As on [email protected] As on 4?.45.D445 As on [email protected]@.D446 As on Cru'e Petrol 5DQX Rs. 7 Per Litre 54QX Rs. 7 er litre 54QX Rs. 7.A4 er litre D@QX Rs. 7.A4 er litre D5QX Die%el ?@QX Rs. ? er litre ?6QX Rs. ? er litre ?6QX Rs. ?.A4 er litre ??QX Rs. ?.A4 er litre 3QX S7O -PDS0 Do$e%ti, LP9
T T T T T
?@Q ?@Q ?@Q ?@Q ?DQ
?@Q ?@Q ?@Q 3Q 3Q
5$
?>.43.D446 As on 4?.45.D44A As on 4?.45.D44@ Cu%to$% Duty As on 4?.45.D44D As on 4?.45.D445 As on 4>.47.D446 As on ?>.43.D446 As on 4?.45.D44A As on [email protected]@ As on 4?.45.D447 T J ?4 ?4 ?4 ?4 A A A
Rs. 7.A4 er litre 3QX Rs. ?5.44 er litre 3QX Rs. ?5.44 er litre D4 D4 D4 ?A ?4 7.A 7.A
Rs. ?.A4 er litre ?@QX Rs. 5.DA er litre ?@QX Rs. 5.DA er litre D4 D4 D4 ?A ?4 7.A 7.A
Nil Nil Nil ?4 ?4 A Nil Nil Nil
Nil Nil ?4 ?4 ?4 A Nil Nil Nil
Note - Cith e%%ect %rom >.7.46) an additional levy o% education cess V DQ has $een im osed. Cith e%%ect %rom ?.5.D445 National 2alamity 2ontin&ent Duty V Rs. A4LM# levied on im orted 2rude and indi&enous crude ;8'ce t P"2LN8LP 2rude 1il=. T - Rs. ?344 mt As 2ess. J - Rs. DA44 mt As 2ess. "ource - Rajya "a$ha Bnstarred Nuestion No. ?6A) dated on DAth Muly) D44@. O Rajya "a$ha "tarred Nuestion No. 77) dated on D4.??.D447. ;downloaded %rom www.indiastat.com =
H>
Su*%i'ie%
Ta*le H1: Su*%i'ie% on MaBor Petroleu$ Pro'u,t% in In'ia ;Rs. in 2rore= !!=. !!:. !: !? >@> 4.3D 4 ?A7D DD.A3 4 4 4 4/1 A??J 4.3D 4 354J DD.@ 4 4 4 :!!
Pro'u,t Eerosene/Domestic use ;PD"= ;RsLLitre= G"D LPG/Packed/ Domestic ;RsL2yl= Na hthaLF1LL"G"/ Fertiliser use Bitumen/Packed Para%%in Ca' Total
!!1.! A5?4 6.4A 4 A354 ??A.@5 4 4 4 111/!
!! . !@ 54?3 D.6A 4 5@>? @7.7A 4 4 4 =:!#
!!@. !/ D4?3 ?.@5 4 D735 6A.?3 4 4 4 /?!1
!!/. !4 >7> 4.3D 4 ?6@3 DD.A3 4 4 4 //:
!!4.!= >7@ 4.3D 4 ?AD4 DD.A3 4 4 4 /#=
A$$r. - N.A. - Not Availa$le. J - A r/"e P47 ;8stimated=. "ource - Ministry o% Petroleum O Natural Gas) Govt. o% India. ;downloaded %rom www.indiastat.com=
Ta*le H : Se,tor.(i%e Su*%i'ie% *y Central 9o6ern$ent in In'ia Se,tor 1##1.# 1##/.#4 !!1. !! .@ !!@./ !!/.4 !!4.= ;Rs. in 2rore= !!=.: !!:.!?
51
I> Total Central 9o6t> Su*%i'ie% Food 1ther su$sidies II> Pol Pro'u,t%L III> Total Su*%i'y -IJII0 ID> Pol Su*%i'y a% I o& Total Su*%i'y
1
4@ D3A4 >645 /1:4
11?4/ A?44 @7A6 =4=! 1?/1/
@1 1! ?76>> ?57?? 111/! / @4!
/@4@@ D6?7@ ?>5A7 4 4 ...
//@ @ DA?3? ?>?6D =@41 ...
/4#4: DA7>3 D4?A> #4: ...
/:4! ! D5477 D6665 =?@ ...
4:1 4 D64?6 55??? =## ...
=#:/ 5?A6@ 53?>@ ?? ...
1=/ ?
4>/1
@4>=@
=>@
1
1/>@@
=>/@
4>=4
/>:
/>1@
A$$r. - R8 - Revised 8stimate. Note - V - #hese do not %orm art o% Govt. Bud&et u to D44?/4D. "ource - Ministry o% Petroleum O Natural Gas) Govt. o% India. ;downloaded %rom www.indiastat.com=
I>
Finan,ial%
Ta*le I 1: Pro&it A&ter Ta+ -PAT0 o& Oil PSU% in In'ia
;Rs. in 2rore=
Co$pany Up%trea$ Oil Co%> 1NG2 I12L BP2L GP2L GAIL 1IL Su* Total Inte2rate' Oil Co%> I12 GP2 BP2 IBP Su* Total Stan' Alone Re&inerie% ERL MRPL NRL 2P2L BRPL Su* Total Total.PSU
!!1.!
!! .!@
!!@.!/
!!/.!4
!!4.!=
!!=.!:
@?>7.33 / / / ??3A.35 ADA.DD :#!?>#@ D336.@@ 737.>3 36>.35 ?>A.7> /:1?> = @3.77 /6>D.63 ?DD.>3 @5.7? /?>3.@? ./@4>=@ 1 1#1>4=
?4AD>.5 / / / ?@5> >[email protected] 1@!?4>!@ @??6.3> ?A57.5@ ?DA4.45 37.7A ?##!>!@ 6A@ /6??.3? ?76.@5 54D.3> ?73.6A :!!>1= ::4>
3@@6.6 / / / ?3@>.56 >6>.7 11/?@>// 7446.3D ?>45.>6 ?@>6.A7 D?6.@@ 1!?1:>## AAA.4> 6A>.6D D?6.>A 644.4A 545.76 1#@@> 4 / @/>=?
?D>35.4A 63>? >@A.3 ?D77.55 ?>A6 ?4@?.@3 @1@ >?= 63>?.53 ?D77.55 >@A.3 A3.37 :1#@>@? 36D.?D 37>.7@ 64>.?A A>@.>7 673.5 @ !=>@ =@#?>@/
?6654.73 6>?A D>?.@A 64A.@5 D5?4 ?@3>.>5 /!/ >## 33>.@@T /[email protected] /?@A3.@4T /AD4.35T . ?#:>44G DD4.@4T 64?.?4T D75.@AT 6A?.74T ?66.??T 1/#1>1=G 1@1#@>?/G
?A@6D.>D 76>> ?34A.63 ?A7?.?7 D537 ?@5>.>> @!4/4>4= / / / / . / / / / / . .
"ource - Ministry o% Petroleum O Natural Gas) Govt. o% India. O Lok "a$ha "tarred Nuestion No. 555) dated [email protected]>.D447. ;downloaded %rom www.indiastat.com =
Ta*le I : Finan,ial per&or$an,e o& petroleu$ re&inin2 ,o$panie% in In'ia
52
;in Rs 2rore= Co$pany Na$e Mar.!= Bharat Petroleum 2or n. Ltd. Bon&ai&aon Re%inery O Petrochemical s Ltd. 2hennai Petroleum 2or n. Ltd. 8ssar 1il Ltd. G P 2 L/Mittal 8ner&y Ltd. Gindustan Petroleum 2or n. Ltd. Indian 1il 2or n. Ltd. Eochi Re%ineries Ltd. ZMer&ed[ Man&alore Re%inery O Petrochemical s Ltd. Na&arjuna 1il 2or n. Ltd. Numali&arh Re%inery Ltd. Petro 8ner&y Products 2o. India Ltd. Reliance Industries Ltd. Reliance Petroleum Ltd. Sale% Mar.!: Co$pen%ation to e$ployee% Mar.!= Mar.!: P3DITA Mar.!= Mar.!: Mar.!= PAT Mar.!: Net(ort) Mar.!= Mar.!:
3A?6>.@D
?476AD.D7
33?.@?
?445.74
?667.34
6?6D.?3
D>?.@?
?34A.53
>?5>.6D
?4D75.A5
@6A6.?7 [email protected]? @6>.D7 4.44 [email protected]> ?>>654.>?
@A@A.?6 D>6DA.A6 67A.77 4.44 >7@67.?5 DA4534.?7
??D.@5 >@.3D ?3.5D 4.44 @>A.@D ?3@4.?>
?6D.3> ?A4.@5 ?D.5D 4.44 75?.D5 [email protected]@
5?6.>3 ??56.5A /35.35 4.44 ?5>6.4> >33@.>6
5D3.>@ [email protected] /6A.55 4.44 5ADD.3> ?6@?7.@>
?76.7@ 634.>@ />5.@3 4.44 64A.AA 6>?6.5@
?36.>3 [email protected] /@7.6> 4.44 ?A74.>3 76>3.A@
37?.@6 DD3?.A5 DAD4.75 544.44 375A.@D D>54D.@7
>76.34 [email protected] D34A.76 553.>6 >A>3.@A 563A7.D>
D3D6D.3@ 4.44 A34>.@6
5DD43.?5 4.44 7>?7.6A
67.>@ 4.44 53.65
AA.D4 4.44 63.A4
??>4.>? 4.44 @6>.34
?@D>.DD 4.44 7@?.D3
57?.@D 4.44 663.>5
ADA.AD 4.44 [email protected]
D5>A.56 A>D.4? ?@>?.55
[email protected] @36.A? D466.>7
3>?D6.6@ 4.44
??35A5.7? 4.44
>73.6A 4.44
D4>6.4A 4.44
?6>>4.4? 4.44
D4A5D.?5 4.44
>4@>.56 4.44
??>65.>? 4.44
6>346.D@ 5?A4.44
@5>@7.?5 ?5663.3D
"ource- Prowess 2MI8
TTT
53
doc_794118198.doc
PROJECT ON COMPETITION IN INDIAN PETROLEUM INDUSTRY
STATE OF COMPETITION IN
THE INDIAN PETROLEUM INDUSTRY
Final Report: January !" !!#
By Indicus Analytics Pvt. Ltd New Delhi For Co$petition Co$$i%%ion o& In'ia Ne( Del)i
Indicus Analytics
ii
CONTENTS I INTRODUCTION.....................................................................................................................................1
II REFINERY TECHNOLOGY AND PRODUCTS................................................................................3 III GLOBAL OIL INDUSTRY...................................................................................................................5 IV INDIAN OIL INDUSTRY......................................................................................................................9 V COMPETITION IN EXPLORATION................................................................................................14 VI COMPETITION IN USER INDUSTRIES.........................................................................................18 VII COMPETITION IN REFINING INDUSTRY.................................................................................20 VIII COMPETITION IN GAS INDUSTRY..........................................................................................21 IX CONCLUSION......................................................................................................................................22 DATA APPENDIX.......................................................................................................................................25 PETROLEUM STATISTICS.............................................................................................................................25
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Tea$ Me$*er% Ashok Desai Laveesh Bhandari Ramrao Mundhe Maj. General Bhu indra !adav
" ecial #hanks to E+pert% at t)e Co$petition Co$$i%%ion o& In'ia Payal Malik
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I
Intro'u,tion
#his a er is a$out the Indian etroleum re%inin& industry. But this industry is e'tremely o en( trade %lows are lar&e com ared to roduction. And there is considera$le overla $etween oil roduction and re%inin& internationally) and to some e'tent in India. "o we $e&in with a $rie% discussion o% the international etroleum industry and its com onents * re%inin& $ein& one o% them. Petroleum is e'tracted %rom under&round reserves( then it is cracked or +re%ined, into end roducts %or various uses. #he etroleum industry thus has two arts- an oil e' loration and roduction industry u stream and a re%inery industry downstream. Most oil roducers also own re%ineries. But the reverse is not true( a hi&h ro ortion o% oil is sold to re%inery com anies that do not roduce crude oil. "edimentary rocks in which hydrocar$ons are tra ed o%ten hold &as) sometimes in association with crude oil and sometimes alone. It consists mostly o% methane) which is li&hter than air and to'ic. It there%ore re.uires airti&ht tanks %or stora&e and similarly leak/ roo% i es or trucks %or trans ort) which raise its ca ital costs. Associated &as was %lared in early years o% the industry( it is still %lared at remote or minor wells where the cost o% its collection and trans ort would $e hi&h) or o%ten reinjected into the oil%ield to maintain ressure which %orces oil u to the sur%ace. But where the .uantities are lar&e enou&h) natural &as is mined and traded. It is mainly used as an industrial) domestic and vehicular %uel. Motor vehicles run almost e'clusively on etrol and hi&h/s eed diesel oil) $oth %uels derived %rom mineral oil * althou&h they can $e modi%ied to run on certain $io%uels. 0ehicles are so widely dis ersed that they re.uire an e'tensive distri$ution system %or these two re%inery roducts. As motor vehicle use has s read across the world) it has $rou&ht alon& with it etrol um s) lo&istics) stora&e and su ly o% %uels. #here is thus a third art o% the etroleum industry downstream %rom re%ineries which distri$utes the roducts. It is owned $y re%ineries in most countries. But this is not inevita$le. "ome countries have distri$ution chains that are inde endent o% roducers and re%iners( and in countries which do not have re%ineries) distri$ution is undertaken $y either local or %orei&n oil com anies. 1il has collected in ools and see s %or thousands o% years. #he 2hinese are recorded as havin& e'tracted oil %rom wells 344 %eet dee throu&h $am$oo i es in 567( they used it to eva orate $rine and make salt. American Indians used to ut it to medicinal uses. Persians) Macedonians and 8&y tians used tars to water roo% shi s. Ba$ylonians used as halt in the ei&hth century to construct the city9s walls) towers and roads. But the easily availa$le oil was not ut to any mass use $ecause the crude itsel% was not a &ood %uel( it &ave out much soot and smoke. A distillation rocess usin& a retort was invented $y Rha:es ;Muhammad i$n <akariya Ra:i= in Persia in the > th century( li.uid heated in it va ouri:ed) assed throu&h a curved s out and condensed in another container. #he rocess could $e used to make kerosene( $ut it was more o%ten used to make alcohol and essence o% %lowers %or er%ume. It was a $atch rocess) its %uel consum tion was hi&h) and it was not e.ually e%%icient at distillin& kerosene %rom all crudes. A more e%%icient and relia$le distillation rocess came out o% a series o% inventions a%ter ?36@. #he last invention was the invention o% oil %ractionation in ?3A6 $y Benjamin "illiman) a ro%essor o% science in !ale. It used a vertical column which se arated com onents more e%%iciently) and which could $e used continuously. 1il was %irst roduced in #itusville) Pennsylvania ;B"A= in ?3A> $y one 8dwin L Drake) who re%ined it into kerosene) which was then used as an illuminant. 8lectricity did not emer&e as an illuminant till the 8dison 8lectric Li&ht 2om any was %ounded in ?373. Cell into the D4 th century) kerosene) &as and electricity continued to com ete as illuminants. Chilst the use o% &as as an illuminant has virtually disa eared) a lar&e o ulation) es ecially in India) continues to use kerosene as illuminant.
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#he invention o% the motor car $y Earl Friedrich Ben: in ?33A created a market %or etrol) a new re%ined roduct ; etrol is called Ben:in in Germany) $ut is not named a%ter Earl Ben:=. In ?3>3) Rudol% Diesel invented an en&ine in which oil was i&nited $y com ression( the diesel en&ine he invented came to ower lar&er vehicles) rinci ally trucks and $uses. Diesel en&ines used a di%%erent %uel) which was named diesel oil. A%ter this) the roduction and use o% motor vehicles s read ra idly in the Bnited "tates) es ecially a%ter ?>43 when Genry Ford $e&an mass manu%acture o% his Model #( and etroleum and diesel oil $ecame the most im ortant re%ined roducts) %irst in the B" and ro&ressively across the world. Gowever) only a certain ro ortion o% crude oil can $e converted into motor %uels. #he demand %or kerosene) the ori&inal distillate e'tracted %rom crude oil) has &one down with the s read o% electricity. "o other re%ined roducts have $een develo ed) and non/vehicular uses develo ed %or them. "ome o% the roducts di%%er little %rom motor %uels( %or instance) na htha) e'tensively used to make nitro&enous %ertili:ers and chemicals) is little di%%erent %rom etrol( and jet %uel is very similar to kerosene. #hus) re%ineries %ind markets %or their roducts in many industries other than motor trans ort -Appen'i+.ta*le C/0. The Industry in India India im orts three/.uarters o% the crude it re%ines -Appen'i+.ta*le D10. It e' orts re%inery roducts -Appen'i+.ta*le E 0( its net e' orts are rou&hly ten er cent o% roduction. #he &overnment o erates an ela$orate set o% cross/su$sidies to insulate domestic %rom international rices( such cross/su$sidies have serious e%%ects on the %inances o% the Indian com anies -Appen'i+.ta*le I 0 involved) and in%luence com etition amon&st them. #he oil com anies) $oth u$lic and rivate) are so lar&e a art o% the economy that the cross/su$sidy re&ime cannot $e sustained in all circumstances( sooner or later) the &overnment has to $rin& domestic rices closer to international rices. Gence the state o% com etition in the international market and international rices are im ortant %or the domestic market. In "ection II) which %ollows) we &ive an introduction to re%inery technolo&y) roducts) and the markets they serve. In "ection III) we $rie%ly descri$e the &lo$al e' loration) roduction and re%inin& industries. In "ection I0) we descri$e the Indian market structure in terms o% the com anies o eratin& in it) their roducts and markets. In "ections 0) 0I) 0II and 0III) we outline the market structure in e' loration and roduction) user industries) re%inin& and &as res ectively. In "ection IH) we turn to the major $arriers to com etition and to the ste s that need to $e taken i% &reater com etition is to $e introduced in the domestic market %or re%ined roducts.
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II Re&inery Te,)nolo2y an' Pro'u,t%
#his section rovides a $rie% overview o% the technolo&y and roduction understandin& o% these issues is critical as it hel s understand industry structure. rocess. An
2rude oil is a li.uid mi'ture o% hydrocar$ons * chemical com ounds consistin& rou&hly o% si' arts o% car$on and one o% hydro&en) $oth o% which are %uels( it &enerally also carries small .uantities o% sul hur) salts) metals) o'y&en and nitro&en. It was %ormed %rom or&anic remains accumulated undersea and eventually tra ed in sedimentary rocks( these rocks are where crude oil e' loration is concentrated. Generally the oil is com ressed) and &ushes out i% a i e is ushed into an oil/$earin& tra . But as it is e'tracted) the ressure diminishes) and it is o%ten arti%icially rein%orced $y injection o% air or water into the reservoir to ush u the oil. 2rude oil contains hydrocar$ons that vary in their $oilin& oint( re%inin& is a rocess in which crude oil is heated in a vacuum until it eva orates and then allowed to rise u a column. Di%%erent hydrocar$ons li.ue%y at di%%erent tem eratures and can $e collected at various hei&hts in the distillation column. In the $asic re%inery rocess) crude is heated to @44I2 $y injection o% su erheated steam and um ed in at the $ottom o% a vertical distillation column. As the va our rises u the column) it cools. #he column has trays at various hei&hts with holes. As the va our cools) %ractions with di%%erent $oilin& oints li.ue%y) collect in the trays and are drained o%%( roducts with hi&h $oilin& oints rise to the to ) while roducts with low $oilin& oints collect on lower trays. #he rinci al roducts) with their a ro'imate $oilin& oints) are etroleum &as ;D4I2=) na htha ;64I2=) etrol ;74I2=) kerosene and jet %uel ;?D4I2=) diesel ;D44I2=) lu$ricant ;544I2=) and %urnace oil ;574I2=( solid etroleum coke collects at the $ottom a%ter the li.uid %ractions are removed. #he ro ortions in which these roducts come out vary to an e'tent with the crude( crudes are classi%ied as li&ht or heavy accordin& to the ro ortion o% li&ht roducts. But the $alance o% demand and su ly %or the roducts is such that the rices o% %urnace oil are much lower than those o% li&ht roducts such as etrol) kerosene and diesel oil. In Au&ust D443) international rices o% residual %uel oil ran&ed %rom JD.D> to JD.63 a &allon( the corres ondin& ran&e was JD.@3/5.4A %or etrol) J5.4@/J5.D> %or diesel oil) and J5.?3/J5.53 %or jet %uel. "o other technolo&ies are em loyed to crack) alter or recom$ine molecules and make li&hter hydrocar$ons %rom residual %uel oil. #he rinci al roducts o$tained %rom the rimary re%inin& and crackin& rocesses are -%ee Appen'i+ . ta*le 34 an' C1 &or pro'u,t.(i%e pro'u,tion an' ,on%u$ption0 Li5ue&ie' petroleu$ 2a% ;LPG=) mostly a com$ination o% $utane and ro ane. It is heavier than air) and li.ue%ies under ressure. It is used as a household cookin& %uel) re%ri&erant) and vehicular %uel( 6 million vehicles are estimated to $e owered $y LPG in the world. Petrol is used to %uel internal com$ustion en&ines) mainly vehicular. Its early use as a killer o% lice and their e&&s has com letely disa eared. Nap)t)a is used to make additives %or hi&h/octane etrol) and to make olymeric lastics and urea) a nitro&enous %ertili:er. A6iation tur*ine &uel ;A#F= is the %uel used in ro eller lanes. It is akin to etrol. 7ero%ene) also known as ara%%in) is used as an illuminant and cookin& %uel in India and other oor countries) and as a s ace heatin& %uel in industrial countries. Jet &uel) used in jet lanes) is closely akin to kerosene. Hi2).%pee' 'ie%el oil is used in en&ines runnin& at 7A4 revolutions er minute ;r m= or more. It is mostly used in diesel/ owered vehicles Li2)t 'ie%el oil is used in diesel en&ines runnin& at lower s eed * mainly irri&ation um s and &eneration sets.
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Furna,e oil is made $y dilutin& residual %uel oil %rom re%inin& with middle distillates such as diesel oil. It is used in $oilers) $unkers) heaters) %urnaces) or as %ertili:er %eedstock. Low/sul hur heavy stock ;L"G"= is a variant o% %urnace oil. Lu*ri,atin2 oil consists o% &reases and viscous oils used to lu$ricate movin& arts in industry) automo$iles) railway en&ines and carria&es and marine en&ines. Para&&in (a+ is used as an electrical insulator) %or heat stora&e and in thermostats. A%p)alt is a $lack thermo lastic roduct that is used to make roads and sometimes %or water roo%in&. It is similar to tar) which is made %rom coal. As halt is also %ound in natural %orm( it was used to water roo% 8&y tian mummies. Petroleu$ ,o8e is mostly used as %uel) $ut is also used to make electrodes and dry cell $atteries. "ome etrochemicals are roduced in lar&e enou&h $ulk to take a si&ni%icant ro ortion o% re%inery roducts- the world consumed 56A million tons o% hydrocar$ons in D446 to make 5?4 million tons o% etrochemicals. Most o% the hydrocar$ons are %irst turned into one o% three intermediates / ethylene) ro ylene and aromatics * $e%ore $ein& converted to other roducts. 1% the latter) lastics accounted %or DDA million tons) and %i$res %or 53 million tons( solvents) deter&ents and synthetic ru$$er accounted %or most o% the rest.
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III 9lo*al Oil In'u%try
In the early years o% the industry) oil or &as see ed out o% the earth in many laces( elsewhere it was discovered $y accident while drillin& %or water. But such easy discoveries are lon& &one. Bndiscovered oil is all under&round) and oil e' loration today uses considera$le instrumentation * &ravimeters) ma&netometers) seismic re%lectors and re%ractors * and strati&ra hy) which is essentially correlation o% availa$le &eolo&ical data. #he data o$tained are correlated to &uess the location o% rock %ormations and identi%y those that are most likely to contain hydrocar$ons. #hen ri&s are used to drill into those %ormations. Drillin& costs much more than &eolo&ical tests( so oil com anies invest heavily in &eolo&ical investi&ation. 1il roduction re.uires drillin& a well into land or sea$ed. Land usually $elon&s to someone( i% it is not rivately owned) it $elon&s to the &overnment. "imilarly) maritime countries claim ownershi o% the continental shelves alon& their coastlines. I% someone wants to e' lore %or oil) he has to &et ermission to drill. I% he %inds oil) he will normally want %irst ri&ht o% e' loitation. "o it is normal %or e' lorers to make an a&reement with the owner) called a concession) which lays down the ri&hts o% the concessionaire and the ayments he would make %or them. In the early years) when oil develo ments were small) it was &enerally enou&h to &et a concession %rom a rivate owner or a num$er o% nei&h$ours. In the B") there were lar&e unoccu ied areas where com anies could drill without any$ody9s ermission. But as oil is came to $e e'tracted %rom dee er %ormations) investment went u ) and e' loration assed into the hands o% com anies which could raise ca ital. Also) a lar&e area o% concession $ecame necessary to avoid dis utes with nei&h$ourin& concessionaires. "uch lar&e areas re.uired the intervention o% &overnments. In the early concessions) &overnments layed the role o% landlords) and &enerally levied a royalty er $arrel o% oil e'tracted. For instance) the "hah o% Persia &ave a concession in ?>4? to Cilliam D9Arcy) a rich 8n&lishman) to ros ect %or oil in most o% Iran %or @4 years) %or which he was romised KD4)444 in cash) KD4)444 in shares o% the oil com any and ?@ er cent o% ro%its. "tandard 1il o% 2ali%ornia ne&otiated a concession with the Ein& o% "audi Ara$ia in ?>55.
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Ta*le 1: Top t(enty ,ountrie% *y oil ,on%u$ption" !!:
9DP PPP JtrnD44A Con%n Output E+port% I$port% ?5.D 5.D A.6 D.? 4.? D.? ? D.5 4.6 ?.> 4.D D.D ?.? ?.@ 4.6 D.5 4.A 7.7 /:>: ?.D5 Re&inin2 ,apa,ity ?7 A.3 6.A D.5 A.6 D.A D D.@ ?.> D ?.A D.5 D.? ?.3 ?.6 ?.@ ?.? ?.D 4.> 4.7 3.5 =?># ?.?D Re%er6e% #rillion $arrels DD ?@ Ener2y inten%ity M$dLJtrn ?.A 4.> ?.5 ?.4 ?.D 4.7 ?.3 ?.3 ?.? ?.4 ?.A ?.4 5.4 4.> ?.? ?.> ?.A ?.A ?.3 ?.5 ?.5 1>@ 4.5@
Country
Million $arrels er day
USA ?5.3 D4.7 7.@ ? C)ina 7 @.A 5.@ 4.6 Japan 6.D A.@ 4.? 4.? 9er$any D.3 D.7 4.D Ru%%ia D.? D.A >.6 7 In'ia 5.? D.5 4.3 4.6 Cana'a ?.D D.? 5.? ?.@ Sout) 7orea ?.D D.? 4.@ 3ra;il ?.3 D ?.@ 4.5 Fran,e D D 4.7 4.A Me+i,o ?.5 ?.> 5.6 ?.3 Italy ?.3 ?.3 4.? 4.A Sau'i Ara*ia 4.@ ?.3 >.A 7.> Unite' 7in2'o$ D.? ?.3 D.? ?.A Spain ?.6 ?.@ 4.5 4.? Iran 4.3 ?.A 6 D.A In'one%ia 4.3 ?.D ?.? 4.A Net)erlan'% 4.@ 4.> 4.? ?.6 T)ailan' 4.A 4.> 4.D Au%tralia 4.7 4.> 4.A 4.? T)e re%t ?A.6 ?>.6 5D.? D4.5 <orl' =4> ? > ?!>4 /?>4 St' 'e6iationAMean ?.5D ?.6D ?.34 ?.3> Sources: Oil: NationMaster.com. GDP PPP: World Bank
76 @ ?7> ?D ?D D@5 A ?55 A
?.55
#hese concession a&reements &ave a relatively small share o% the ro%its to the &overnments o% oil/ roducin& countries. But over the years) they either took shares in the concessionaire com anies or nationali:ed them. By D447) 77 er cent o% oil roduction was in &overnments9 hands( their share o% reserves would $e even hi&her) since the industries o% countries with the lar&est reserves are all nationali:ed. #a$le ? &ives roduction) consum tion) trade and reserves o% the to D4 consumers o% oil. #he %i&ures are not entirely accurate) $ut they are &ood enou&h %or the $road conclusions we seek. #he D4 countries account %or three/.uarters o% &lo$al consum tion( the remainin& ?3@ countries account %or only a .uarter. #he B" accounts %or a .uarter and the ne't %ive countries %or the ne't .uarter. #hese twenty countries also account %or three/.uarters o% the world9s GDP ;at urchasin& ower arity( that is) calculated at the same rices %or all countries=. It would thus seem that income is a major determinant o% oil consum tion. It is) $ut oil intensity is e.ually im ortant. #he last column shows oil consum tion er unit o% GDP. It tends to $e hi&h in oil/ roducin& countries) es ecially i% they have e'treme climates like "audi Ara$ia) Iran and 2anada. It is low in develo in& countries like India and 2hina. Amon&st industrial countries) some like Britain) France and Germany have $rou&ht down oil intensity considera$ly. Many countries tried to increase ener&y e%%iciency a%ter the %irst oil crisis o% ?>75( some did so more e%%ectively than others. #he to D4 countries roduce three/%i%ths o% the world9s oil. #his is $ecause the $i&&est consumers include most o% the $i&&est roducers * "audi Ara$ia) Russia) the B") 2anada) Me'ico) Iran and Indonesia- oil roducers tend to consume relatively more oil. Naturally) they are oil e' orters as well. #hat is why the to D4 consumers account %or three/%i%ths o% the world9s oil e' orts.
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But $ein& the lar&est consumers) they account %or %ive/si'ths o% the world9s oil im orts. And they account %or seven/ei&hths o% the world9s re%inin& ca acity. 1il re%ineries are more o%ten sited close to consum tion centres( so consumin& countries have a lar&er share o% re%inin& ca acity than o% oil roduction. #he ratio o% standard deviation to mean con%irms these conclusions. Production and e' orts vary most across the D4 countries. 2onsum tion varies much less) and varia$ility o% im orts is even less( the varia$ility o% $oth is com ara$le to the varia$ility o% GDP at urchasin& ower arity. Re%inin& ca acity has the least varia$ility) and is most evenly s read across the countries. ;0aria$ility o% reserves is also low( $ut this is $ecause nine o% the D4 countries have reserves close to :ero.= Ta*le : Top t(enty ,ountrie% *y natural 2a% ,on%u$ption" !!=
Country <orl' Natural 9a% Pro'u,tion" Mo%t Re,ent Annual E%ti$ate%" !!= -Trillion ,u*i, &eet0 Output <a%te' ReinBe,te' Mar8ete' Dry 2a% I$port% E+port% 5.5 4.4 ?.? 4.4 4.A 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.@ 4.4 4.4 4.4 4.4 3.7 1/>@ ?>.6 D5.D 6.6 4.7 7.D 4.D 5.4 4.6 5.4 4.7 ?.7 D.? D.D 4.? D.7 ?.> ?.3 ?.? 4.> 4.4 5D.3 1!#>@ ?3.A D5.D 5.3 4.7 @.A 4.D D.3 4.6 D.@ 4.7 ?.7 D.? D.D 4.4 D.7 ?.7 ?.@ ?.? 4.> 4.4 54.A 1!/>! 6.D ?.3 4.D 5.5 4.5 5.? 4.7 D.7 4.4 ?.> 4.6 4.4 4.4 ?.3 4.> 4.4 4.? 4.5 4.5 ?.D >.5 @ >= 4.7 3.6 4.D 4.6 5.@ 4.4 4.6 4.4 4.4 4.4 4.4 4.? 4.6 4.4 ?.> 4.5 4.D 4.4 4.4 4.4 ?6.> @1>= Con%n D?.7 ?@.@ 5.3 5.A 5.5 5.D 5.D 5.4 D.@ D.@ D.D D.4 ?.3 ?.3 ?.7 ?.A ?.A ?.6 ?.D ?.D D6.3 1!/>/
Bnited "tates D5.A 4.? Russia D5.D 4.4 Iran @.4 4.6 Germany 4.7 4.4 2anada 7.3 4.? Ma an 4.D 4.4 Bnited Ein&dom 5.4 4.? Italy 4.6 4.4 "audi Ara$ia 5.4 4.4 Bkraine 4.7 4.4 Me'ico ?.3 4.? 2hina D.? 4.4 B:$ekistan D.D 4.4 France 4.? 4.4 Netherlands D.7 4.4 BA8 D.@ 4.4 Ar&entina ?.3 4.4 India ?.? 4.4 #hailand 4.> 4.4 " ain 4.4 4.4 All others 66.4 D.A <orl' Total 1 :>? @>/ Source: B" 8ner&y In%ormation Administration
#a$le D summari:es roduction) consum tion and trade in natural &as %or D44@. Incidentally) a $arrel o% oil has the ener&y e.uivalent o% @444 cu$ic %eet o% &as( so the D44@ &lo$al &as consum tion o% ?46.6 trillion c%t o% &as comes is e.uivalent to 67.7 million $arrels er day o% oil * more than hal% the oil consum tion &iven in #a$le ?. As will $e seen) D.7 er cent o% the &as was %lared or vented) and ??.? er cent was reinjected into oil%ields. #he remainin& ?4>.5 tc%t contained other &ases $esides methane) li.uid hydrocar$ons and water( its methane e.uivalent was ?46 tc%t. Gas roduction and consum tion show similar concentration to oil. 1ne major di%%erence is that Russia is the %oremost roducer) consumer and e' orter o% &as. Cest 8uro ean countries are lar&e im orters( they im ort &as %rom Norway and the Netherlands) which e'tract North "ea &as o%%shore) as well as %rom Russia. Corld &as reserves on ? Manuary D44A were ?34 trillion cu$ic meters or @544 trillion cu$ic %eet( 74 trcm or 5> er cent o% them were o%%shore. #wo/thirds o% them $elon&ed to three countries * Russia ;D@ er cent=) Iran ;?A er cent= and Natar ;?6 er cent=. A art %rom natural &as) there are estimated to $e ?44/D@4 trcm o% coal/$ed methane) 64D/66D trcm o% ti&ht &as ;&as tra ed in
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dense sands=) 6D/6A trcm o% shale &as and ?5)444/D6)444 trcm o% hydrates ;methane tra %ro:en water molecules=? .
ed in
#hese) in $rie%) are the roduction and market structures with which the Indian oil industry is necessarily connected $ecause o% its de endence on im orts o% crude as well as re%ined roducts. 1il roduction is e'tremely une.ually distri$uted. 1il im ortin& countries have to &et oil %rom roducers since the international wholesale market is not lar&e enou&h to su ly lar&e consumers. 1il roduction is e'tremely une.ually distri$uted) and oil e' orts even more so. #he only countries with si:ea$le sur luses o% oil are those in the Middle 8ast * "audi Ara$ia) Iran) Euwait) Bahrain) and when its oil roduction %acilities are restored) Ira. * and Russia. North "ea 1il) e'tracted $y Norway) Britain and Netherlands) is mostly consumed within Cestern 8uro e( and 2anadian and Me'ican oil &oes to the B". #here is no sin&le market in oil. #here are three ty es o% oil distri$ution arran&ements. First) there are oil markets in the B" and Cestern 8uro e where common crudes o% those re&ions are traded. Gere the ricin& is com etitive) althou&h some o% the su liers9 market share is lar&e. Ne't) considera$le .uantities o% oil are sold throu&h contracts o% varyin& len&ths. Prices would normally not vary in the li%e o% these contracts) $ut they would in the lon& run take market rices as the $enchmark. Many contracts rovide %or revision o% rices de endin& on a chan&e in international market conditions. Finally) a certain ro ortion o% oil is allocated $y &overnments at rices o% their choice( these rices may or may not $e ali&ned to international market rices. India) like all $i& oil consumers) has enou&h re%inin& ca acity -Appen'i+.ta*le 3/0. But since the out ut attern o% re%ineries seldom matches domestic consum tion atterns) there have to $e some e' orts and im orts o% re%ined roducts. As will $e e' lained later) olicy/induced distortions %orce e' ort o% some re%ined roducts %or which there is a market in India * even some that are im orted -Appen'i+. ta*le% D C E 0. And India has the choice o% im ortin& re%ined roducts instead o% crude. "o there are $oth im orts and e' orts o% re%ined roducts.
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A !"ll" Sani" " #2$$6%& 'as "s" ("s) disc*(" i"s and + *ducti*n. Pan* a!a 2$$6. Institut , ancais" du P"t *l") R"uil-Mal!ais*n) , anc". www.ifp.com/content/download/5 !5 /"# $! /%ersion/$/file/&'P(Panorama! )!5( ReservesDecou%Prod(*+.pdf
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ID In'ian Oil In'u%try
As in the B") 2hina and Iran) oil see ed out o% the soil in India as well( British travelers in Assam re orted such ools %rom ?3DA onwards. 1nce %ractionation technolo&y was roved in the B") industrial re%inin& o% oil $ecame %easi$le. Assam Railways O #radin& 2om any Limited was re&istered in London in ?33? to e' loit Assam9s natural resources. It struck oil in e' loita$le volume near Di&$oi in ?33>( at that oint it trans%erred its oil interests to a se arate com any) Assam 1il 2om any. A12 $uilt a re%inery in Di&$oi in ?>4?. A12 was taken over in ?>?7 $y Burmah 1il 2om any) which later $ecame Burmah "hell and then "hell. 8' anded and moderni:ed a num$er o% times) the Di&$oi re%inery continues to %unction till today. In ?>53) A12 took a ros ectin& licence %or @)D>4 s.uare miles in Assam. it ceded the concession a%ter the Car started in ?>5>) and resumed it in ?>67. A12 struck oil in Naharkotia in ?>A5. By that time) however) the &overnment o% India had $ecome aranoid a$out %orei&n ownershi o% $usiness( there was a lon& stando%% $etween it and A12 over the e' loitation o% the new oil%ield. Finally in ?>A>) A12 and the &overnment set u 1il India Limited) a @7-55 joint venture) to e' loit the Naharkotiya oil%ield( in ?>@? it $ecame a A4-A4 joint venture. A art %rom the small re%inery in Di&$oi) India did not roduce re%inery roducts when it $ecame inde endent in ?>67( it de ended almost entirely on im orts) mostly %rom An&lo/Iranian 1il 2om any9s re%inery in A$adan. #hree com anies sold the roducts throu&h their distri$ution networks * Burmah "hell) "tandard 0acuum and 2alte' ;now mer&ed into "hell) 8''on and 2hevron res ectively=. Burmah "hell was the lar&est) with an almost A4 er cent share o% the market. In Decem$er ?>A5) the Indian &overnment entered a DA-7A joint venture with "tandard 0acuum %or survey o% ?4)444 s.uare miles in Cest Ben&al. #he com any did some &ravimetric and seismic surveys) and drilled seven holes. It %ound some &as in some which it considered non/ commercial( it did not %ind any oil. #he &eneral im ression was that "tandard 0acuum ut little e%%ort into ros ectin& in Cest Ben&al. #his could have $een due to the incentive structure. "tandard 0acuum had access to chea crude %rom the Gul%( i% it %ound oil in India) the &overnment would %orce it to e' loit it. Its cost was likely to $e hi&her) and the com any would either have earned lower ro%it mar&ins or the &overnment would have had to rotect domestic re%inin&( "tandard 0acuum would have had to ne&otiate the level o% rotection. #he ne&otiations $etween "tandard 0acuum and the &overnment on the re%inery threw u a lar&e num$er o% issues) many o% which are relevant to the olicy conte't today. D #he %ollowin& are im ortant. ?. D. 5. #he com any wanted a &uarantee a&ainst nationali:ation %or 54 years) later reduced to DA. It wanted %reedom to im ort crude. #he im lication was that it did not want to $e %orced to use domestic oil or oil that the &overnment ne&otiated access to. It wanted %reedom to distri$ute its re%inery roducts. It wanted to use its own distri$ution network to sell the roducts) and did not want to $e %orced to distri$ute throu&h other networks) &overnment9s or otherwise. Price %i'in& is anterior to distri$ution( the com any also did not want rice control. It would rice its re%ined roducts at landed cost o% im orts ;includin& duty=. Im ort arity would $e with Me'ican oil and roducts) not Middle 8astern. Im ort arity was understood to lace a ceilin& on rices.
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A d"tail"d i/ at0" +a tisan su!!a y */ t0" n"1*tiati*ns 2"t3""n t0" 1*(" n!"nt and t0" *il c*!+ani"s 4 + inci+ally Standa d 5acuu! 4 is 1i("n in 6 7 8aul ) K D Malviya and the Evolution of Indian Oil, Alli"d Pu2lis0" s) 9"l0i.
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6.
It wanted %ree access to %orei&n e'chan&e %or all ractical ur oses * crude) %rei&ht) e.ui ment) services) dividend remittance) includin& crude and services $ou&ht %rom its %orei&n o erations * to $e valued at international rices. It wanted no im ort duty to $e char&ed on crude and on e.ui ment not roduced in India. #here was an im ort duty on diesel oil( whar%a&e rates too were such as to &ive some rotection. #he com any wanted that these levels o% rotection would not $e reduced. It wanted an im ort duty on etrol e.ual to the e'cise duty lus ?D Paise er im erial &allon. Im ort duties a lica$le to the com any should $e no lower than those a lica$le to its com etitors. #he tankers that $rou&ht in crude should $e allowed to $e used %or coastal distri$ution o% re%inery roducts. #here should $e no restrictions on local $orrowin&s %or e.ui ment) construction and inventories. Its ca ital investment would $e &iven ?4 calculation o% income ta'. er cent strai&ht/line de reciation in the
A.
@. 7. 3. >.
#he com any wanted e'em tion o% the Industrial Develo ment and Re&ulation Act o% ?>A?) which &ave the &overnment the authority to control industrial roduction) e' ansion and diversi%ication. #he &overnment a&reed( $ut "hell and 2alte' did not &et this assurance.
#he &overnment also wanted a num$er o% thin&s. ?. It wanted "tandard 0acuum to set u a local su$sidiary to $uild and run the re%iner. "tandard 0acuum was a&ainst it %or three reasons- ;?= #he su$sidiary would $e su$ject to income ta'( ;D= it would have to ay sales ta' on whatever re%ined roducts it sold to the distri$ution com any( and ;5= i% the &overnment laced controls on dividend ayments) the su$sidiary would $e su$jected to them. But eventually it did a&ree to set u a su$sidiary. #he &overnment wanted the local su$sidiary to issue shares to local shareholders( it issued a .uarter o% its ca ital o% J@ million to them in re%erence shares. #he other two com anies issued non/votin& shares to local shareholders. D. "hould India discover oil) the &overnment wanted the 2om any to romise to use it in re%erence to im orts. #he com any a&reed( rice was uns eci%ied. 5. #he &overnment reserved the ri&ht to im ose and vary e'cise duties) $ut romised to maintain the e'istin& di%%erentials $etween e'cise and im ort duties. In other words) i% it im osed or increased an e'cise duty) it would increase im ort duty $y at least that much. 6. #he &overnment wanted the com any to train and em loy Indians. A. #he &overnment had a&reed at inde endence to continue oolin& dollars with the 2ommonwealth( at the same time) the British &overnment owed it a lar&e de$t) termed sterlin& reserves) %or su lies durin& the Car. "o it wanted "tandard 0acuum to $uy crude and other im orta$les %rom the "terlin& Area as %ar as ossi$le. #he com any a&reed) since AI12) the com any that roduced oil in Iran and Euwait) was British and would acce t Pounds. @. In the event o% the &overnment ac.uirin& tankers) it wanted the com any to use them in re%erence to other tankers. #he com any a&reed) su$ject to the use o% its own tankers and rior contractual commitments. 7. #he &overnment wanted the com any to &ive riority to local urchases over im orts( the com any a&reed. #he ne&otiations continued %or three years) $ut no a&reement emer&ed. #he oil com anies revaricated. #he &overnment sus ected that the oil com anies were ha y with the im ort o% re%ined roducts %rom A$adan re%inery) which they sold in India at certain and hi&h ro%its. But a%ter Iran nationali:ed the A$adan re%inery in May ?>A?) India looked a sa%er country to o erate
1$
in. In Novem$er) "tandard 0acuum si&ned an a&reement with the &overnment to set u a re%inery. Burmah "hell and 2alte' %ollowed in the ne't two years. 8sso9s DA)444 $ d re%inery was inau&urated in Bom$ay in ?>A6) Burmah 1il 2om any9s 54)444 $ d re%inery went onstream in Bom$ay in ?>AA) and 2alte'9s ?4)444 $ d re%inery went u in 0i:a&a atam in ?>A7. #he &overnment was %rustrated with the e' erience o% ne&otiations with the three oil com anies. In the ?>A4s) the &overnment took a num$er o% ste s to reduce de endence on %orei&n oil com anies. In ?>A@) it set u 1il and Natural Gas 2ommission to e' lore %or oil) and $rou&ht in "oviet and Rumanian ri&s and crews to ros ect %or oil. #he two areas chosen were the 2am$ay area in Gujarat and the Mawala uri/Manaur area in what is now Gimachal Pradesh. #he "oviet crew considered Gujarat more romisin&) and drilled there %irst. #he %irst well was s udded on DA Muly ?>A3( on D6 "e tem$er it struck oil under ?A4 atm ressure at 7444 %eet. Further e' loratory drillin& led to the discovery o% Ankleshwar and Ealol oil%ields in ?>@4) and su&&ested that the oil/ $earin& strata e'tended o%%shore to what came to $e known as Bom$ay Gi&h. 1il %rom this area was the %oundation o% 1NG29s emer&ence as an oil roducer. Gas too was %ound in and o%% Gujarat) $oth associated and non/associated. In ?>36) the &overnment se arated 1NG29s &as $usiness and &ave it to a se arate su$sidiary) Gas Authority o% India Limited ;GAIL=. GAIL $uilt a i eline %rom Ga:ira on the Gujarat coast to Delhi) and su lied &as to &overnment/owned ower stations and %ertili:er lants on the way. It also set u joint ventures with &overnment oil com anies and state &overnments to su ly &as to Bom$ay and Delhi %or trans ort and domestic %uel) and to Andhra Pradesh %or trans ort. In ?>37 it set u Petronet) a joint venture with three other &overnment oil com anies) to im ort LNG %rom Natar. Pricin& and distri$ution o% u$lic sector &as are entirely decided $y the &overnment( there is no element o% market in this area.5 #he "oviet surveys had shown the oil/$earin& structures o% Gujarat e'tendin& into the sea in ?>@6/@7) $ut the "oviets did not have the technolo&y %or o%%shore e' loration or roduction. In ?>76) a Ma anese survey shi leased $y 1NG2 discovered the roli%ic Bom$ay Gi&h o%%shore %ield. It has $een the mainstay o% 1NG29s $usiness since then. 1nce oil was discovered in Gujarat) the &overnment had to think a$out how to e' loit it. In ?>A3) it set u Indian Re%ineries to set u re%ineries. In ?>A>) it set u Indian 1il 2om any to undertake distri$ution. #he two were later mer&ed into Indian 1il 2or oration. I12 was &iven a mono oly o% im orts o% re%inery roducts( with that) it soon overtook the three %orei&n com anies in distri$ution. #hus the %oundations o% the &overnment/owned oil industry were in lace $y ?>@?. A Dmt a re%inery to rocess Gujarat crude was $uilt with "oviet hel in Eoyali) Gujarat in ?>@@. But Gujarat crude could not meet the &rowin& national demand. "o in the ?>@4s) the &overnment took to $uildin& coastal re%ineries in joint ventures with %orei&n com anies. #he D.A mt a 2ochin re%inery came u in ?>@@ with investment %rom Philli s Petroleum) the D.A mt a Madras re%inery went on/stream in ?>@> with artici ation %rom AM121 and National Iranian 1il 2om any) and the lu$ricants lant o% Lu$ri
l India came u in Bom$ay in ?>@> with artici ation o% 8sso. 6 In ?>@4) B" President Dwi&ht 8isenhower introduced oil im ort .uotas %avourin& Me'ico and 2anada and discriminatin& a&ainst Middle 8astern roducers and 0ene:uela. #his u set the latter. In "e tem$er ?>@4) Ira.) Iran) "audi Ara$ia) Euwait and 0ene:uela &ot toðer to +coordinate, olicies and %ormed the 1r&ani:ation o% Petroleum 8' ortin& 2ountries. #he or&ani:ation was just a talkin& clu$ %or ten years. But in ?>74) 1P82 resolved to raise its mem$ers9 share o% oil revenue to AA er cent) and $e&an ne&otiations with oil com anies to e%%ect the increase. #here %ollowed a s ate o% measures $y which Middle 8astern oil roducin& countries nationali:ed or im osed revenue shares on oil roducin& com anies) or cancelled concessions. 1il concessions were nationali:ed $y Al&eria in ?>7?) Ira. in ?>7D and Euwait in ?>7@/77. Li$ya nationali:ed a num$er o% oil%ields held $y %orei&n com anies $etween ?>7? and ?>7@) and took an 3A er cent share onshore and an 3? er cent share in the oil%ields o% others.3
C/ Mi;" <ac;s*n #2$$5%& 7atu al 1as s"ct* "/* ! in India& cas" study */ a 0y2 id !a ;"t d"si1n. Stan/* d P *1 a! *n En" 1y and Sustaina2l" 9"("l*+!"nt. =* ;in1 Pa+" 43) <uly. 4 C S 5"n;ata atna! and Anil 5" !a) Challenge of Change, Alli"d Pu2lis0" s) 9"l0i 1::7.
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;Iran had nationali:ed the British/owned An&lo/Iranian 1il 2om any in March ?>A?.= #he "audi Ein& threatened Ara$ian American 1il 2om any ;Aramco= with nationali:ation with ?>A4 and &ot a hal%/share in ro%its. Ge ac.uired a DA er cent share in Aramco in ?>75) increased it to @4 er cent in ?>76) and took %ull ownershi o% the com any in ?>34. Euwait nationali:ed its oil industry in ?>7A) Bahrain took a majority share in its concessionaire oil com any in ?>34. A%ter the ?>@7 war $etween Israel and Palestine) Ara$ mem$ers o% 1P82 %ormed 1r&ani:ation o% Ara$ Petroleum 8' ortin& 2ountries. Israel de%eated 8&y t and "yria in the !om Ei ur war in ?>75. 8nra&ed) 1P82 raised the rice o% its crude %rom J5 to J?D a $arrel) and made it e%%ective $y cuttin& su ly. A%ter this) oil roducin& countries reali:ed that they could raise their revenue $y raisin& the rice o% their crude. "o they started increasin& rices without coordination. Chile the nationali:ations o% the ?>74s did not immediately disru t the relationshi s $etween oil roducin& countries and their licensee %orei&n com anies) they introduced e'treme uncertainty in the com anies9 $usiness environment. #heir attem ts to co e with this uncertainty chan&ed the world oil industry in three major ways. ?. #he com anies $e&an to e' lore %or oil in more di%%icult environments such as the North "ea) Gul% o% Me'ico) and the 2as ian "ea. 8' loration in these %ields was more e' ensive. "o smaller com anies %ailed or were $ou&ht u ( the industry &ot more concentrated. #he &overnments o% the B" and Britain did not control oil roduced in their jurisdictions in the way the Middle 8astern oil roducers did. "o oil roduced in #e'as) Gul% o% Me'ico and the North "ea $e&an to $e traded on commodity markets. For the %irst time) an o en market in crude emer&ed. Nuotations %or crude such as Brent #ill the ?>74s) re%ineries were tailored to a sin&le crude source) and &enerally roduced a limited set o% roducts. #he uncertainty o% crude su ly led re%iners to desi&n or modi%y re%ineries to take a $roader variety o% crudes and make a &reater ran&e o% roducts. Not all re%ineries did( re%ineries are .uite dura$le) and many re%ineries remained unchan&ed. Many closed down. But catalytic crackin& technolo&y develo ed to make re%inin& more %le'i$le.A
D.
5.
As oil roducin& countries increased their share o% ro%its and oil at the e' ense o% %orei&n oil com anies) the oil su lies they controlled went u and those o% oil com anies went down. In the circumstances) the main reason %or havin& %orei&n oil com anies o erate re%ineries in India * namely) their access to crude * disa eared. In ?>7@) India nationali:ed the three re%ineries owned $y "hell) 2alte' and 8sso. In ?>3?) the &overnment $ou&ht out Burmah 1il9s A4 er cent stake in Assam 1il 2om any. Cith the nationali:ations) the entire Indian oil industry assed into &overnment hands) and came to $e run as a art o% the &overnment. In ?>77) the &overnment introduced an Administered Price Mechanism) to $e o erated $y an 1il 2oordinatin& 2ommittee. #he ministry o% etroleum %i'ed so/called retention rices desi&ned to &ive oil roducers ?A er cent and re%iners ?D er cent on their net worth. And it set administered rices at which roducts were sold to consumers. #he di%%erence $etween the revenue and dues o% an oil com any went its account with 122. "o overall) the rice level was cost/ lus( $ut the &overnment could cross/su$sidi:e individual roducts at will. It was the oil com anies9 ractice to construct their own etrol um s and &ive them to dealers to run. Bnder the rivate com anies) dealershi s were &iven to trusted associates) and they $ecame a art o% the com anies. A%ter nationali:ation) the &overnment decided to set u a %airer system. In ?>35 it set u %our 1il "election Boards( each $oard had a retired jud&e and one other mem$er. An "2L"# mem$er was added in ?>>5. 1il um s made &ood ro%its with little investment on the art o% the dealer and at low risk. "o many more eo le wanted um s than could &et them) and recommendations and corru tion were ram ant in their allocation. In Manuary ?>>@) a PIL led to a court en.uiry) which revealed that the ersonal assistant o% "atish "harma)
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<" *!" 9a(is) The Changing World of Oil: An Analysis of Corporate Change and Adaptation. As01at") L*nd*n) ++ 1-1$.
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the etroleum minister) &ot oil com anies to &ive um s to relatives and %riends o% oliticians) and char&ed others money. #he same scandal continued under the ensuin& BMP &overnment) and $lew u in D44D( Prime Minister 0aj ayee cancelled all the 53A4 allotments made in the revious two years. #here has $een no u$lic scandal since then) $ut that does not necessarily mean that the system works any $etter now.
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D
Co$petition in E+ploration
From ?>7> onwards) the ministry o% Petroleum $e&an to invite international $ids %or e' loration and develo ment %rom time to time. Nine rounds o% $iddin& were held till ?>>7( 5D $locks were awarded %or e' loration and 54 %or develo ment. In ?>>7 they roduced 5 mt a o% crude and 7 mcmd o% &as. But since re%inin& and distri$ution were &overnment mono olies ; Appen'i+.ta*le 310) the licensees had to sell their oil and &as to the &overnment. Ne&otiations with the &overnment were rotracted and involved each time. "o the rounds attracted little international interest. In the meanwhile) the &overnment mono olies could not increase roduction and re%inin& ca acity to kee u with demand ;Appen'i+.ta*le A 0. Between ?>3A/3@ and ?>>A/>@) the im ort ratio went u %rom 5? to 66 er cent %or crude and %rom 7 to D7 er cent %or re%ined roducts. #he olicy o% &overnment ownershi and control o% oil was a art o% a socialist a roach which a lied to all economic olicies. #hese olicies $ecame discredited when a serious $alance o% ayments ro$lem arose in ?>3>/>?( a new &overnment elected in ?>>? overhauled many o% the olicies. It a ointed two committees in ?>>6/>A- one under the chairmanshi o% B "underarajan was asked to e'amine re lacin& administered $y market/determined rices) and a strate&ic lannin& &rou on restructurin& o% the oil industry ;R Grou = was asked to look at the structure and or&ani:ation o% the industry. #he story o% which o% their recommendations in%luenced olicy and how %ar is convoluted( $ut the &overnment made the %ollowin& major olicy chan&es.
Fi& ? 1il out ut and im orts ?34 ?@4 ?64 ?D4 Million tons ?44 34 @4 64 D4 4 ?>7D/75 ?>7@/77 ?>34/3? ?>36/3A ?>33/3> ?>>D/>5 ?>>@/>7 D444/4? D446/4A 2rude out ut 2rude im orts Product out ut Product im orts
#he &overnment announced a New 8' loration Licensin& Policy in ?>>7) which di%%ered %rom the old one in the %ollowin& res ects.@ ? D Bidders were to com ete on cost recovery * they could ask %or u to ?44 er cent * and on their share o% ro%it etroleum. #hey were %ree to sell their share o% the oil to anyone within the country.
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R 8 7a an1) A d0"ndu S"n and L""la S i(asta(a) >ac;1 *und +a+" & Issu"s in d" "1ulati*n */ *il and 1as. In L""la S i(asta(a and S 8 Sa ;a ) Transition to a i!erali"ed Environ#ent: E$perien%es and issues in i!erali"ation, T" i P "ss 1::
++ 411-426.14
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2onditions re&ardin& minimum e' enditure) re.uired artnershi with &overnment oil com anies) and si&nature) discovery and roduction $onuses were scra ed. #a' rovisions were de%ined) and their sta$ility romised. #here would $e a 7/ year income ta' holiday) e'em tion %rom customs duty on e' loration and drillin& e.ui ment) royalty was %i'ed at ?4 er cent e'ce t %or onshore crude which would ay ?D.A er cent) A er cent royalty on discoveries in water dee er than 644 meters) and develo ment e' enditure could $e amorti:ed over ?4 years. #he licence could $e assi&ned to third arties under conditions. A 2onciliation and Ar$itration Act assed in ?>>@) $ased on the model set $y Bnited Nations 2ommission on International #rade Law) would a ly to dis utes. Bidders were re.uired to &ive the Directorate o% Gydrocar$ons) which was set u in ?>>5) the results o% their surveys( in case they a$andoned the concession) the results would $ecome availa$le to su$se.uent $idders.
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A @
7
Bnder the New 8' loration Licensin& Policy) si' rounds were held and ?@D roduction/sharin& licences were &iven till ? A ril D447) a&ainst D3 $e%ore the introduction o% N8LP. 1% the licences) 77 er cent were o%%shore) and A5 er cent were to &overnment com anies. #he sedimentary area e' lored went u %rom A4 er cent in ?>>A/>@ to 3A er cent in D44@/47 o% the total 5.?6 s.uare kilometers ;?.7> million onshore and u to 644 meters o%%shore) ?.5A million dee /water $eyond 644 meters=. Cell e' lored area went u %rom ?A to D4 er cent) oorly e' lored area %rom ?7 to D? er cent) and area $ein& e' lored %rom ?3 to 66 er cent. #hese %i&ures su&&est that many licensees were sittin& on concessions $ecause they did not see a satis%actory ath to ro%ita$le e' loitation o% discoveries) or were ne&otiatin& such a ath. A seventh round o% N8LP was o ened on ? A ril D443. In Muly) si' multinational com anies ;2hevron and 2onoco/Phili s o% the B") BritainPs BG ;British Gas= and BP ;British Petroleum=) 2anadaPs Niko and An&lo/Dutch "hell= wrote to the &overnment to say that they would not $id i% the re&ulatory %ramework remained uncertain and the &overnment did not adhere to contractual arran&ements. Instances o% such were ;?= the 8nron a%%air) in which Maharashtra &overnment rene&ed on a contractual o$li&ation to $uy electricity at a %i'ed rice ;it was saved %rom liti&ation $y 8nron9s li.uidation on account o% %raud committed $y the com any in its home country) B"=) ;D= the &overnment9s takin& away the contractual ri&ht o% the owners o% the Panna/Mukta %ields * Reliance) British Gas and 1NG2 * to sell &as) and %orcin& them to sell it to GAIL at a rice o% its choosin& to GAIL ;the e' loration contracts em$odied %reedom o% sale and ricin&=) and ;5= DGG9s rene&otiation o% conditions em$odied in the model roduction sharin& contracts issued at the time o% announcement o% earlier rounds a%ter $idders had invested money and %ound oil or &as. #he com anies were also o% the view that DGG) which was su osed to $e a re&ulator) acted more like an arm o% the &overnment. #he &overnment did not res ond to the si' com anies9 concerns( conse.uently) they did not take art in the $ids. In the event) o% the A7 $locks on o%%er) ?D received no $ids) and ?> received only one $id. 1% the 6A winnin& $ids) one was rejected $y 2a$inet 2ommittee on 8conomic A%%airs) resultin& in 66 roduction sharin& contracts. 1NG2 and its associates &ot D4 concessions. #hus) the round con%irmed a decline in interest amon&st international com anies) es ecially e' erienced ones. #here is a more &eneral disincentive to $iddin& in the %act that the $idders have to sell their roduction in India) which remains a market dominated $y &overnment com anies( it is thus im ossi$le to $e sure that the concessionaire would &et an internationally com ara$le rice %or his out ut. #his is articularly o$vious in the case o% 2airn 8ner&y) which $ou&ht a $lock in Rajasthan %rom "hell in D44D and soon struck oil. #he %ind in Barmer was %ar %rom the sea. It could $e sold to Indian 1il 2oor oration) $ut ne&otiations have not $orne %ruit till now. #he crude is wa'y) and di%%icult to trans ort. 2airn has $een drillin& more e' loration wells and raisin& its estimate o% reserves. Now it is lannin& to lay a heated i eline to "alaya and e' ort the crude.
15
Ta*le : Oil an' 9a% Re%er6e% on 1%t April !!:
;Mtoe=
1il Gas Oil in pla,e 1il Gas Ulti$ate re%er6e%
ON9C 6@45 ?3D4 =/ @ ?5?5 >3D #4
OIL 3?A D>4 11!4 D65 ?A? @#/
Ot)er% @D> 353 1/=: ?7D A?? =?@
Total @467 D>63 ?##4 ?7D7 ?@6A @@:
Source: Directorate o% Gydrocar$ons
It is also ro$a$ly true o% Reliance) which %irst struck oil in Erishna/Godavari $asin o%%shore) and later &as as well. In D44@) Niko Resources whom Reliance had called in as consultant estimated &as reserves at ? trillion c$m. Reliance tried to sell the &as to ower utilities on the south and east coast) $ut %ailed to reach a&reement over the rice. #he ower utilities are owned $y state &overnments and make heavy losses. "o their a$ility to ay is in dou$t. #hus) rivate entry was allowed in oil e' loration and roduction in the ?>34s) and rivate %irms have discovered su$stantial oil and &as resources. But none has used them to enter domestic re%inin& and distri$ution. #his is $ecause dere&ulation o% the downstream industries has not ke t ace with that o% e' loration. 8' loration and roduction costs vary enormously accordin& to the location and de th o% hydrocar$ons and the si:e o% reserves. #here is a su&&estion that the a$sence o% com etition makes it ossi$le %or the oil concessionaires to take $ri$es %rom su liers o% e.ui ment and services in return o% over ayments and. to overestimate investment costs. #he chie% sa%e&uard a&ainst this ossi$ility is #he Directorate o% Gydrocar$ons) whose $lock mana&ement committee a roves all %ield develo ment lans. Chen it awards 8OP contracts) it looks at $oth costs and at the technolo&ical ca acity o% the a licant and his a$ility and willin&ness to save time) do a thorou&h e' loration and $rin& reserves into roduction. Besides its own e' ertise) its com arison o% com etin& $ids would hel it make a jud&ment on individual ro osals. #he e' ertise it ac.uires in evaluatin& $ids should &ive it ca acity to su ervise P"Bs9 activities also. It is authori:ed to hire outside e' erts and consultants when necessary. A sus icion that 1NG29s costs had $een added arose in D44@. In A ril D447) the alle&ation that Reliance Industries added costs was made $y the 2ommunist Party o% India ;Mar'ist=. 1NG2 ointed out that DeGolyer and McNau&hton) an outside consultant) did a third/ arty audit o% all its rojects. Reliance &ot a third/ arty audit done $y Ga%ney) 2line and Associates when the ori&inal discoveries were made) $ut was asked to &et a new audit done. #here are two other authorities that check the ro osed costs o% u$lic enter rises. #hey would $e a roved $y the arent ministry. It does not have the e' ertise to make an in%ormed e'amination( $ut that does not revent it %rom e'aminin& the costs. It is also within its urview to take the hel o% international e' erts. #he other is the 2om troller and Auditor General. Ge only makes an e' ost e'amination lon& a%ter the costs are incurred. Ge re orts to Parliament) which can make the &overnment take action on his re ort. Parliament committees o$tain a re ly to 2AG9s %indin&s %rom the &overnment) $ut there is no %urther action. #hus the sa%e&uards within the &overnment a&ainst overstatement o% costs are not very e%%ective. Chat is crucial here is that there should $e multi le com etitors %or concessions. #his re.uires e' ertise in %ormulatin& invitations %or e' loration contracts. From the %act that most e' loration contracts have &one to a hand%ul o% Indian com anies * mostly &overnment) some rivate * it can $e in%erred that there is little com etition %or them. #he reasons are also clear- that the &overnment restricts the discoverer9s ri&ht to sell any oil or &as he %inds in the world market) and that the dominance o% u$lic sector undertakin&s in the domestic re%inin& industry makes it
16
im ossi$le %or a discoverer to &et a %air market rice %or his oil. Gence i% there is addin& o% costs) it is due to the restraints on com etition laced $y the &overnment o% India.
17
DI Co$petition in u%er In'u%trie%
A major entry $arrier into oil re%inin& and &as is lack o% com etition in major markets %or re%ined roducts. Government dominance o% user industries and the losses it %orces them to make limit their ca acity to ay internationally com ara$le rices. "ome o% the user %irms also su%%er %rom endemic li.uidity ro$lems on account o% their oor ro%ita$ility) and delay ayments %or %eedstock. #wo such industries are im ortant- electricity) which in other countries is an im ortant market %or &as and %urnace oil) and %ertili:er) whose re%erred %eedstocks are &as and na htha. 1verstatement o% costs is not very e%%ective. #he electricity industry is dominated $y electricity $oards) which are essentially de artments o% state &overnments and have no o erational %reedom. #he rices they char&e are decided $y the &overnments) and are %i'ed at unremunerative levels. As a result) they de end %or investment %unds on state &overnments) which are themselves in no &reat %inancial sha e. 1win& to their un ro%ita$ility) they are o%ten short o% li.uidity and delay ayin& su liers o% %uel. #ill D446) they had run u enormous de$ts to coal and oil com anies. #hen the central &overnment %orced state &overnments to settle the de$ts as art o% more &eneral %inancial stren&thenin&. #he centre has the ower and in%luence to %orce state &overnments to ay. Private com anies would not $e a$le to do so. Gence the electricity $oards remain un romisin& customers %or &as or %urnace oil roduced $y rivate com anies. #he centre tried to $reak this im asse $y assin& the Re&ulatory 2ommissions Act in ?>>3. It a ointed a 2entral 8lectricity Re&ulatory 2ommission and ersuaded a num$er o% states to set u then own 8R2s. It also assed a new 8lectricity Act in D44D which envisa&ed introduction o% com etition %rom the rivate sector. Bnder its ersuasion) a num$er o% states cor orati:ed their electricity $oards and se arated &eneration and distri$ution. But des ite all this activity) electricity ricin& ractices did not chan&e. 8lectricity $oards continued to $e %inancially weak and hence oor customers %or hydrocar$on roducts. As lon& as they remain una$le or unwillin& to ay) enter rises o% the central &overnment) in &as) oil and electricity) will have an advanta&e in collectin& their dues %rom state electricity $oards as a&ainst any rivate com etitors that may come u . #he %ertili:er industry roduces nitro&enous) hos hatic) com ound and mi'ed %ertili:ers. 1% these) only nitro&enous %ertili:ers re.uire hydrocar$on %eedstocks( the normal %eedstocks are &as and na htha) which are %irst converted to ammonia and then into its com ounds. Phos hatic and com le' %ertili:ers were decontrolled in ?>>D) and nitro&enous %ertili:ers with low nitro&en content in ?>>6. But urea) which constitutes 3A er cent o% nitro&enous %ertili:er consum tion) remains under control. It is administered $y the Fertili:er Industry 2oordination 2ommittee) which is constituted entirely o% central &overnment secretaries e'ce t %or two re resentatives o% rivate lants. FI22 o erates a retention rice scheme. It collects out ut and cost %i&ures %rom all lants) adds ?D er cent return on ca ital) and there$y arrives at the total reali:ation re.uired. It divides the reali:ation $y the nitro&en out ut to &et nitro&en rice) which is then used to derive the rices o% various %ertili:ers. #he di%%erence $etween the rices and the costs is &iven to lants as su$sidy or taken away as ta'. A similar e'ercise is done to calculate total trans ort costs to the %armer) which are then so distri$uted $etween lants that %arm &ate rice o% urea is the same across the country. Chile in ut costs rose) the ministry o% %ertili:ers has hesitated to raise rices. #he result is that it is ayin& an enormous %ertili:er su$sidy. #o kee the su$sidy down) it has endeavoured to kee in ut rices as low as ossi$le. #his is one reason why the &overnment has tried to commandeer &as su lies %rom rivate roducers and rene&ed on the %reedom o% ricin& romised to them. #he domination o% the electricity and the %ertili:er industries $y the central and state &overnments) the losses they make and the conse.uent ressure to kee in ut rices low make the two industries unattractive as customers. #his is not so material to u$lic enter rises whose losses are $orne $y the &overnment) $ut their a$ility to $ear losses &ives them an advanta&e a&ainst
1.
ower lants) and discoura&es rivate investment in hydrocar$ons. Bnless electricity and %ertili:er markets are decontrolled) this handica o% rivate hydrocar$on %irms cannot $e removed.
1:
DII Co$petition in Re&inin2 In'u%try
Re%inery licences were &iven to the Birla &rou ;jointly with Gindustan Petroleum 2or oration) a su$sidiary o% I12= in ?>33) the 8ssar &rou in ?>>5) and Reliance Industries in ?>>@. #he Birlas9 Man&alore re%inery was ready $y ?>>>( it could not $e started $ecause GP2) whom the Birla &rou had taken in as artner %or its access to market) re%used to li%t the roducts. Finally the Birla &rou sold o%% its 57.53 er cent stake to 1NG2 in D445. #he %irst hase o% the Reliance re%inery in Mamna&ar was ready in ?>>>. Althou&h Reliance &ot a licence %or etrol um s in D44D) it has sold only a small ro ortion o% its etrol and diesel out ut throu&h um s( it has e' orted the $ulk. In D447) it sou&ht and &ot ?44Q 81B status. It &ave Reliance duty/%ree access to crude rovided it $alanced its total im orts and e' orts. #he Ruias9 0adinar re%inery went onstream in Novem$er D44@. #he delays were artly due to their le&endary lack o% %inance( $ut they were also not in a hurry $ecause they could not work out a %easi$le marketin& strate&y. Distri$ution has handica ed &rowth o% rivate re%inin&) and hence emer&ence o% com etition. 1n ? A ril D44D) the &overnment announced the a$olition o% the Administered Price Mechanism and o% the 1il 2oordination 2ommittee which administered the rice controls. It introduced direct su$sidies on kerosene and LPG -Appen'i+.ta*le H10) and raised ta'es on etrol and domestic crude -Appen'i+.ta*le 9:0. #he etroleum ministry issued retail distri$ution licences to 1NG2) GAIL) 1IL) Reliance Industries) Man&alore Re%ineries) 8ssar 1il and 2airn 8ner&y. 1% the licensees) only Reliance and 8ssar o ened a si&ni%icant num$er o% um s -Appen'i+.ta*le F@0> Reliance set u um s which were sho in& centres at the same time. 1n the hi&hways) they also o%%ered %ood) accommodation and $aths to truck drivers. #hey sold 6?4 kiloliters a month on the avera&e in D44A/4@) a&ainst u$lic sector outlets which sold ?64 kilolitres. "o althou&h they had only ?65D outlets out o% the total 54)444) their share o% retail sales was close to ?6 er cent -Appen'i+.ta*le F10. #hen) on D7 March D447) Reliance a lied %or the status o% a ?44Q e' ort/oriented unit( it &ot that status in Fe$ruary D443. In D447/43) its e' orts came to @4 er cent o% its sales. 1n D6 March D443) Reliance announced that it was closin& down all its etrol um s. #he reason was that the &overnment was su$sidi:in& etrol and diesel sold out o% its com anies9 um s) $ut did not &ive the su$sidies to rivate com etitors. "o retail sales were no lon&er ro%ita$le %or Reliance. 8ssar did not take a u$lic decision to close down um s( it sim ly sto ed re&ular su lies to its um s. As #a$le 5 shows) its sales in D447/43 were insi&ni%icant relatively to the market. #hus as %rom May D443) retail sales o% etrol and diesel oil are a &overnment mono oly -Appen'i+. ta*le F 0( there is no com etition. 1ne conse.uence o% this lack o% com etition was the recurrin& shorta&e o% diesel oil in #amil Nadu $etween May and Au&ust D443) when Reliance was e' ortin& it at the same time. Reliance had no etrol um s any more) so it could not have su lied the market. It could have sold diesel to u$lic sector oil com anies) $ut then it would have $reached the conditions o% its 81B status. #he 81B cate&ory) introduced into the trade olicy in the ?>@4s) has outlived its use%ulness. Chile it is reasona$le to e'em t e' orts %rom domestic ta'es) there is no reason to make that e'em tion conditional on minimum e' orts. It is not certain whether the se&re&ation o% e' orters and domestic roducers was use%ul when it was tried %irst( it has outlived its use%ulness) and in the #amil Nadu diesel crisis it roved counter roductive.
2$
DIII
Co$petition in 9a% In'u%try
Automotive %uels have to $e reached to vehicle owners( hence oil re%inin& com anies cannot do without access to a marketin& network. Gas) however) re.uires an e' ensive trans ort network in the %orm o% i elines( hence &as roducers re%er to sell to as %ew consumers as ossi$le) and re%er lar&e $uyers. Chere &as has $een availa$le $eyond industrial needs) it has $een i ed to households( $ut such domestic networks have $een con%ined to cities. Bnless i elines o% di%%erent su liers &et interconnected) there is no com etition $etween them( each has a mono oly o% su ly to the customers connected to its i eline. #here is only one common carrier i eline network in India. It has $een $uilt $y Gujarat "tate Petroleum 2or oration throu&h two su$sidiaries * Gujarat "tate Petronet) whose i elines connect the cities o% Gujarat) and Gujarat Gas) which lays retail connections within the cities. It trans orts su lies %rom three sources to Bom$ay and cities o% Gujarat- li.ue%ied natural &as %rom Natar that Petronet $rin&s into Dahej) &as su lies %rom Gujarat Gas) a British Gas su$sidiary) which in turn $uys &as %rom 1NG2 and sells it across Gujarat) and GAIL9s sales in Gujarat. GAIL was incor orated in ?>36 to evacuate associated &as %rom 1NG29s Gujarat oil%ields. Its most im ortant &as i eline is the Ga:ira/0ijay ur/Ma&dish ur i eline o% GAIL which carries 1NG29s &as out ut %rom Gujarat to a series o% ower and %ertili:er lants %rom the Gujarat coast to Punja$. As its &as su ly ran short) it also started takin& Petronet9s &as im orts %rom Natar. Assam Gas 2om any) which is owned $y the &overnment o% Assam) su lies &as to a %ertili:er lant) a etrochemical lant) %our ower stations) DA4 tea &ardens) 644 industrial esta$lishments and D4)444 domestic consumers. Reliance) which %ound considera$le &as o%%shore in the Erishna/Godavari %ield startin& in D445) has not laid i elines to evacuate the &as $ecause it has not yet %inali:ed customers. As shown in 2ha ter 0I a$ove) the two industries that are major otential customers) electricity and %ertili:ers) are owned $y the central and state &overnments. Most o% the enter rises in them make losses which are %inanced $y &overnments( it would $e im ossi$le %or new rivate lants to com ete with these lants. "ince these markets are closed) the only %easi$le o tion %or Reliance is to sell its out ut to GAIL at whatever rice it can &et) and let the &overnment distri$ute it to lants o% its choice.
21
IE Con,lu%ion
In D447/43) India9s %ive lar&est com anies in terms o% sales were oil com anies. Four out o% %ive were owned $y the &overnment. #he sales o% the si'th * 8ssar 1il * were ne&li&i$le. Reliance9s share o% sales was ?7 er cent o% all the oil com anies9 sales) $ut @4 er cent o% its out ut was e' orted. "o it does not re.uire much analysis to conclude that the Indian oil industry is an oli&o oly) and that it is dominated $y &overnment %irms -Appen'i+.ta*le F10. #he retail market %or etrol and diesel is almost entirely a &overnment mono oly. #his mono oly also a%%ects e' loration and roduction) %or as we have seen) a num$er o% com anies that have struck oil or &as cannot %ind a domestic market $ecause o% the &overnment9s mono oly o% distri$ution. Gow can this situation $e chan&ed) and com etition $e introducedR
Ta*le @: In'iaF% oil ,o$panie%F re6enue%" !!:.!? Co$pany Indian 1il 2or oration Reliance Industries Bharat Petroleum Gindustan Petroleum 1il and Natural Gas 2or oration 8ssar 1il #otal
"ource- 2om any annual accounts.
R% *illion D4?A ???D >7D >5> 7AA @ 4:##
Per ,ent 56.7 ?>.D [email protected] [email protected] ?5 4.? 1!!
#he domestic market is close to a mono oly. All hydrocar$on roducts are tradea$le) althou&h their trans ort costs vary &reatly * hi&hest %or &as) lower %or crude) and the more valua$le a re%ined roduct) the lower ro ortionally are trans ort costs. "o the most e' editious way o% introducin& com etition is %reein& im orts. #here cannot $e com etition in e' loration and roduction i% re%inin& and distri$ution are concentrated( and there cannot $e com etition in re%inin& unless crude is %reely im orta$le. Gence the %irst condition %or a more com etitive market is a$sence o% restrictions on %orei&n trade. #he ne't condition is ta' arity o% im orts and domestic roduction. #his means that whatever domestic ta'es are levied should $e a lica$le to im orts as well. Im ort duties may $e levied( $ut unless there is a reason to rotect e' loration and roduction $eyond the si:e to which they would &row without rotection) crude im orts should $e duty/%ree) so that there is ma'imum incentive to invest in re%inin&. #here will inevita$ly $e ta'ation o% re%ined roducts) since some o% them are considered in uts into lu'uries ;e &) aviation %uel and etrol=) and are in %act sources o% roli%ic revenue. Duties on domestic roduction must $e matched $y e.ual im ort duties) so that there is no discrimination in %avour o% e' orts. Bnder com etitive conditions) re%inin& adds little value to crude. #he tonna&e o% re%ined roducts comes to >4/>A er cent o% the crude in ut( and the throu&h ut o% a re%inery is so hi&h in com arison to its ca ital costs that a low avera&e ro%it mar&in &ives a hi&h rate o% return. In D447/43) a ro%it mar&in $e%ore ta' o% [email protected] er cent translated into a return on assets o% ?A.A er cent %or Reliance( %or I12) a mar&in o% 5.> er cent translated into a return on assets o% ?D.5 er cent. I12 was %orced $y the &overnment to &ive hu&e su$sidies on sales o% etrol) diesel and kerosene -Appen'i+.ta*le H10( on the other hand) its re%ineries are older and their historical cost er ton is lower. But even %or a hi&hly so histicated re%inery like that o% Reliance) the ca ital/ out ut ratio is close to one( %or sim ler re%ineries it would $e much lower) and the return on ca ital would $e hi&her than the mar&in. #y ically) a re%inery9s mar&in mi&ht $e ?4 er cent) and crude mi&ht account %or 34/>4 er cent o% its costs. "ince some re%inery roducts are considered lu'uries and others necessities) ta'es on them will $e di%%erent( and the avera&e ta' on re%ined roduct will $e hi&h. In the circumstances) the ta' system can $e sim li%ied and com etition in re%inin& intensi%ied $y not ta'in& crude at all) and concentratin& all ta'ation on re%ined roducts.
22
Finally) we come to entry restrictions. Gere) the answer is di%%erent %or e' loration and roduction) and %or re%inin&. Ce shall deal %irst with e' loration and roduction) $ut it should $e $orne in mind that the attractiveness o% e' loration is closely de endent on the ease o% entry in re%inin& and distri$ution. It is di%%icult to conceive o% com letely %ree entry into e' loration $ecause it involves access to land which has to $e a roved and sometimes or&ani:ed $y the &overnment. "o some %orm o% e' loration licensin& is unavoida$le. #he hi&h ro ortion o% concessions &ranted to 1NG2 would su&&est otherwise) $ut there is no overt discrimination a&ainst %orei&n com anies or e'clusion o% any com anies other than on such sel%/evident criteria as minimum e' erience and minimum investment. #he &overnment9s insistence that discovered oil and &as must $e used in India * its im licit e' ort $an * reduces the otential value o% %inds and ro$a$ly leads to %ewer $ids and lower revenue %or the &overnment( now that the $alance o% ayments is no lon&er a olicy ro$lem) this domestic use re.uirement is outdated. Ce have ar&ued a$ove %or duty/%ree im orts o% crude. In those circumstances) an e' ort $an or insistence on domestic use makes even less sense. "o the only im ortant varia$le in e' loration and roduction would $e ta'ation o% roduction ;e' loration can o$viously not $e ta'ed=. #he customary %orm o% ta'ation here is that the &overnment ta' a share o% the oil roduced * what is called ro%it oil. I% ro%it oil is :ero) the roducin& com any takes all the oil that is roduced) and the &overnment &ets nothin&. #he &overnment must $e very des erate to roduce oil domestically $e%ore it takes :ero ro%it oil. #his is not the situation in India. At the other e'treme) ro%it oil can $e ?44 er cent. No oil com any would a&ree to this unless the &overnment aid all costs lus some ro%it. "o this case really comes to the &overnment e' lorin& oil. 8' loration does not necessarily im ly roduction( a &overnment may e' lore sim ly to &et $etter knowled&e o% the country9s oil resources. #he knowled&e would reduce the risk in roduction) and would &et the &overnment $etter terms when it does decide to roduce. At resent) the &overnment &ives com anies e' loration licences with the condition that the data the concessionaires collect in the course o% e' loration must $e &iven to the &overnment( they are de osited with Directorate o% Gydrocar$ons. Given the %act that there is no ur&ency to roduce) it would $e a &ood idea to se arate e' loration and roduction( the &overnment should invest sim ly in e' loration and data collection. Chen it decides on roduction) it will then have ready data to sell to otential $idders( it will &et more $ids) and $etter terms. "o much %or e' loration. Gowever) it is re%inin& and distri$ution that re.uire re%orms to introduce com etition. #here is one recondition that is already satis%ied and is there%ore likely to $e i&nored- that roduct standards should $e de%ined and en%orced. 1il roducts are e'tremely di%%erentiated( di%%erent uses re.uire di%%erent s eci%ications) some re.uire ti&ht s eci%ications) and non/standardi:ed roducts can $e dan&erous in some uses such as aviation. "o standards have to $e de%ined and en%orced $y the &overnment. "uch standards will $e correlated with the earlier/mentioned commodity ta'es. In India) the e'treme variation in ta' rates creates ower%ul incentives to ass o%% a hi&hly ta'ed roduct as a less ta'ed one) and more o%ten) to adulterate roducts( %or instance) it is common to mi' divert su$sidi:ed kerosene and mi' it with hi&h/s eed diesel oil. #he solution ado ted has $een to ut a dye in su$sidi:ed kerosene. #hat is an ine%%ective remedy) %or the dye does not make kerosene less eli&i$le %or adulteration. #he correct solution would $e to have the same ta' on close su$stitutes) and to su$sidi:e the eo le intended directly. #here is one other condition that would need to $e modi%ied. Chen allowin& rivate entry) the &overnment has insisted that new entrants must set u a minimum ro ortion o% um s in S$ackward9 or Srural9 areas. Ideally) there should $e no such condition( i% the &overnment wants more etrol um s in certain areas) it must &ive them su$sidies until they reach a certain minimum turnover. #he &overnment has a service ta'( it can $e a lied to etrol um s) and a cut/o%% oint may $e set $elow which there would $e no ta'.
23
It is ossi$le to introduce com etition in distri$ution alone) without any chan&es in re%inin&. #he %irst condition %or it would $e to a$olish licensin& o% um s. #here is no ar&ument %or licensin& e'ce t that ca tive um s o% oil com anies have e'isted ever since they started sellin& etrol( there is a stron& ar&ument a&ainst licensin& in India) that it creates ram ant corru tion) which reaches ri&ht u to the minister. "econd) there should $e %ree im orts o% roducts. #here should $e no canali:ation o% roduct im orts) and no .uantitative restrictions. But distri$ution re.uires considera$le investment in stora&e) lo&istics and etrol um s. I% com etition is not introduced in re%inin&) the only com etition can come %rom im orts( it will not emer&e unless new entrants are assured o% continued access to im orts %or a lon& eriod. #o ensure a level layin& %ield) domestic ta' rates and im ort duties should $e identical) so that the ta' $urden is the same irres ective o% the ori&in o% su lies. #his is an ar&ument that a lies to all the olicy chan&es su&&ested here) and not just to ta'ation. #he oil roduction and distri$ution chain re.uires lar&e ca ital investments whose li%e runs into decades. I% the $ene%its o% com etition are to $e rea ed) the olicy re&ime must $e sta$le %or decades) and must in advance $e known to $e sta$le. I% the &overnment is serious a$out com etition) it must acce t and announce sel%/restraint on its %reedom to make and chan&e olicies. Finally) trans ortation a%%ects com etition in an im ortant way. For all hydrocar$ons) i elines are the chea est medium o% trans ort. Di%%erentiation o% re%ined roducts makes dedicated i elines %or them e' ensive) $ut even amon&st them) etrol and diesel are consumed in lar&e enou&h .uantities to make i in& economical. 2urrently) all i elines in India are owned $y &as or oil com anies) and thus insulate them %rom com etition. I% all the i elines were common carriers and carried oil) &as or roducts %or all customers without discrimination at reannounced rices) re%ineries and &as/$ased lants would s read out more evenly across the country) and there would $e &reater com etition amon&st them. #he case is similar to that o% electricity) in which there cannot $e com etition %or the %inal market unless a transmitter and distri$utor rovides access %rom every &enerator to every consumer. 1ne solution that was tried out was to decree that all com anies that had i elines would allocate a certain ro ortion o% i eline ca acity %or common carria&e. As %ar as we know) this re&ulation was a dead letter %rom the start( there has $een no common carria&e in India. #he $est solution now would $e to nationali:e all e'istin& i elines and &ive them to a new com any to run as a u$lic utility on a cost/ lus $asis. #he ne't $est solution would $e to &ive all the i elines o% state/owned com anies to a common carrier. In &as in articular) com etition cannot emer&e in the a$sence o% a common carrier. #he conclusions we have reached have im lications %or the 2om etition 2ommission. #he oil industry has a re&ulator o% sorts in Directorate General o% Gydrocar$ons. It rovides e' ertise that the ministry lacks and $uys such e' ertise as it does not have ;or makes oil com anies $uy it=. But it con%ines itsel% to technolo&ical issues and avoids the economic issues discussed a$ove( and on olicy it kee s close to the &overnment and does not choose to take an inde endent view. #his is where a role %or the 2om etition 2ommission is inesca a$le. It is %or the 2om etition 2ommission to decide at what level to %rame its interventions. Nuite a %ew o% &overnment o$structions to com etition that are %ound in the oil industry are resent in other industries as well( the 2om etition 2ommission would have to take a view on whether to take an industry/ s eci%ic a roach or to take u more &eneral issues o% olicy. 8ither way) there is a role that only the 2om etition 2ommission can lay.
TTT
24
Data Appen'i+
Petroleum Statistics A> At a 9lan,e Ta*le A1: 9ro(t) o& In'ian Petroleu$ In'u%try at a 9lan,e Ite$ 1> Re%er6e%H -3alan,e Re,o6era*le0 ;i= 2rude 1il ;ii= Natural Gas > Con%u$ption ;i= 2rude 1il ;in terms o% re%inery crude throu&h ut= ;ii= Petroleum Products ;e'cludin& RBF= @> Pro'u,tion ;i= 2rude 1il ;ii= Petroleum Products /> I$port% C E+port% -i0 9ro%% I$port% ;a= Nty - 2rude 1il P1L Products #otal ;a= ;$= 0alue 2rude 1il P1L Products #otal ;$= Pol> I$port% a% per D9CICS -ii0 E+port% ;a= Nty P1L Products ;$= 0alue P1L Products -iii0 Net Unit !!!. !1 !!1. ! !! . !@ !!@. !/ !!/. !4 !!4. != !!=.!:G
Mn. #onne Bn. 2u$. Mtr.
745 7@4
75D 7@5
76? 7A?
755 3A6
75> >D5
73@ ??4?
7A@ ?4>4
Mn. #onne
?45.66
?47.D7
??D.A@
?D?.36
?D7.?D
?54.??
[email protected]
Mn. #onne Mn. #onne Mn. #onne
?44.47 5D.65 >A.@?
?44.65 5D.45 ?44
?46.?5 55.46 ?46.?6
?47.7A 55.57 ??5.6
???.@5 55.>3 ??3.D5
??5.D? 5D.?> ??>.7A
??>.AA 55.>> ?5A.D@
Mn. #onne Mn. #onne Mn. #onne Rs. Billion Rs. Billion Rs. Billion R%> 3illion
76.? >.D7 35.57 @A>.5D ?D4.>5 734.DA :1/>#:
73.7? 7.4? 3A.7D @45.>7 7D.6> @[email protected]@ ==:>:
3?.>> @.76 33.75 7@?.>A 3D.4@ 366.4? ?4@>=:
>4.65 7.> >3.55 35A.D3 >@.77 >5D.4A #/4>
>A.3@ 3.37 ?46.@> ??74.45 ?63.33 ?5?3.>? 1@/!>#/
>>.6? ??.@3 ???.4> ?7?7.4D DAA.7A ?>7D.77 1#/=>/
??4.3@ ?@.>7 ?D7.35 D?>>.>? 645.3> [email protected] 4? >4#
Mn. #onne Rs. Billion
3.57 [email protected]
?4.47 3D.?>
?4.D> ?43.@3
?6.@D [email protected]?
?3.D? D>>.D3
D?.A? [email protected]
5D.6 34?.7D
25
I$port%: ;a= Nty - 2rude 1il P1L Products #otal ;a= ;$= 0alue 2rude 1il P1L Products #otal ;$= -i60 Unit Dalue o& Cru'e Oil I$port% -9ro%%0 4> In'iaF% Total E+port% => Pol> I$port% a% I o& In'iaF% Total E+port% ;i= Gross Im orts ;ii= Net Im orts :> Contri*ution o& Oil Se,tor to CentreAState Re%our,e% ;i= Royalty %rom 2rude 1il ;ii= Royalty %rom Gas ;iii= 1il Develo ment 2ess ;iv= 8'cise O 2ustom Duties ;v= "ales #a' ;vi= Dividend ?> Natural 9a% : ;i= Gross Production ;ii= Btilisation
Mn. #onne Mn. #onne Mn. #onne Rs. Billion Rs. Billion Rs. Billion
76.? 4.> 7A @A>.5D 66.D? 745.A5
73.7? /5.4@ 7A.@A @45.>7 />.7 A>6.D7
3?.>> /5.AA 73.66 7@?.>A /D@.@D 75A.55
>4.65 /@.7D 35.7? 35A.D3 /7?.46 [email protected]
>A.3@ />.35 [email protected] ??74.45 /?A4.6 ?4?>.@5
>>.6? />.35 3>.A3 ?7?7.4D /D??.6A ?A4A.A7
??4.3@ /?A.65 >A.65 D?>>.>? /5>7.35 ?34D.3
R%>AMT R%> 3illion
??#? !@4>:1
:=
!#!>1?# #@ 441>@:
# @: #@@>=:
1
!=
1: : /4=/>1?
1#?// 4:1=>/
@=1?>:#
Q Q
53.5 56.@
5D.6 D3.6
55.? D3.3
5?.3 D@.?
[email protected] D3.D
65.D 55
6A.A 5?.A
Rs. Billion Rs. Billion Rs. Billion Rs. Billion Rs. Billion Rs. Billion Bn. 2u$. Mtr. Bn. 2u$. Mtr.
DD.7D @.43 D7.D3 5A>.?D D55.7A 56.3D
D6.3@ @.A> D3.73 5@?.46 D44.> 5D.37
54.@7 7.73 A4.>? 6A?.D7 D>7.6? @7.>6
5?.76 3.A6 A?.65 A47.55 5D3.6> @5.?
6D.7? 3.D> AD.63 A@5.>A 5>4 >6.5@
A4.@ >.3? A4.47 @5?.65 N.A. N.A.
N.A. N.A. 74.56 7?3.>5 N.A. N.A.
D>.677 D7.3@
D>.7?6 D3.457
5?.53> D>.>@5
5?.>@D 54.>4@
5?.7@5 54.77A
5D.D4D 5?.5DA
5?.767 54.7>?
A$$r- NA - Not Availa$le. Note - T - Provisional. U - As on ?st A ril o% Initial year. "ource- Ministry o% Petroleum and Natural Gas. Government o% India) ;downloaded %rom www.indiastat.com=
26
Ta*le A : Co$pany.(i%e Pro'u,tion" Con%u$ption" I$port an' E+port o& Li5ue&ie' Petroleu$ 9a% -LP90 in In'ia
Co$pany Parti,ular Year PSU Re&inery Fra,tionator PDT Re&inery EOL PDT -TMT0 Total
Production
2onsum tio n
Im ort
8' ort
IOCL CPCL 3PCL HPCL NRL 3RPL MRPL ON9C 9AIL OIL RIL D447/ 43 ;A r/ Dec 47= ??>3 D@4 @75 6A5 53 56 D?? 776 73> 5@ ?>>D D44@/ 47 ?633 5>> 3D@ A>D A6 63 D3D ?4D4 ?45D 66 D@A5 D44A/ 4@ ?5A6 647 75> 6@@ 67 A4 D7A ?4>6 ?46D 63 D?>5 D447/ 43 ;A r/ Dec 47= 5>7@ /// D?>D D?4A /// /// /// /// /// /// /// D44@/ /// /// /// /// /// /// 47 A4>3 /// D734 D@A? > D44A/ /// /// /// /// /// /// 4@ 635D /// D@?5 DA5? 67 D447/ /// /// /// /// /// /// 43 ;A r/ Dec 47= ?DD@ /// ??? ?7? /// D44@/ /// /// /// /// /// /// 47 ?AA3 /// ?>D D?7 /// D44A/ /// /// /// /// /// /// 4@ DD55 /// D?7 /// /// D447/ /// /// /// /// /// /// 43 ;A r/ Dec 47= 7D /// /// /// /// D44@/ /// /// /// /// /// /// 47 3@ /// /// /// D@ D44A/ /// /// /// /// /// /// 4@ A5 /// /// /// /// "ource- Rajya "a$ha Bnstarred Nuestion No. A7A) dated on 46.45.D443. ,downloaded from www.indiastat.com-
A7 ?7
/// /// ///
@A?A 36A6 77?7
/// /// ///
677 5?4 655
37A4 ?4363 ?46A@
/// /// ///
677 5?4 655
?>3A DD73 D335
///
/// 4.?
7D ??D A5
///
///
3>
Pro'u,tion Ta*le 31: Re&inery Cru'e T)rou2)put an' Pro'u,tion o& Petroleu$ Pro'u,t% in In'ia
,.!!! /onnes-
Year
Cru'e T)rou2)put Pu*li, Pri6ate Total Se,torAJDC Se,tor @4 ?>@@ ?43D4 ?746A DA555 6D>?4 A?77D @AD6 3D@7 7AA> AD53 A45 / / @A36 ?4D55 ?357> DDD35 DA35@ 6D>?4 A?77D
Pro'u,tion Pu*li, Pri6ate Se,torAJDC Se,tor ?? ?755 >>@A ?A3>A D5@6@ 5>33? 63A@D @?36 73D3 7?6A 6>56 677 / /
Total @?>A >A@? ?7??4 D43D> D6?D5 5>33? 63A@D
?>@?/ @D ?>@A/ @@ ?>74/ 7? ?>7A/ 7@ ?>34/ 3? ?>3A/ 3@ ?>>4/
27
>? ?>>?/ >D ?>>D/ >5 ?>>5/ >6 ?>>6/ >A ?>>A/ >@ ?>>@/ >7 ?>>7/ >3 ?>>3/ >> ?>>>/ 44 D444/ 4? D44?/ 4D D44D/ 45 D445/ 46 D446/ 4A D44A/ 4@ D44@/ 47T
A?6D5 A563D A6D>@ A@A56 A376? @D374 @A?@@ @3A53 764AD 776?? 77@D4 3D4?A 3>6>A >D343 >@>6@ ?43?75
/ / / / / / / / ??>?D D@455 D>@A6 54A66 5D56A 5654> 55?@5 53573
A?6D5 A563D A6D>@ A@A56 A376? @D374 @A?@@ @3A53 3A>@6 ?45666 ?47D76 ??DAA> ?D?364 ?D7??7 ?54?4> ?6@AA?
6356> A45A> A?436 AD>D7 AA43? A>44A @?543 @6A66 @>?66 7D4A> 7D6@D 7@D5@ 355>7 3@5D3 3>7>5 >>7?6
/ / / / / / / / ?4D@7 D5AAA D7A6D D7>46 544@@ 5?>4A D>>A7 5AA6@
6356> A45A> A?436 AD>D7 AA43? A>44A @?543 @6A66 7>6?? >A@?6 ?44446 ?46?64 ??56@5 ??3D55 ??>7A4 ?5AD@4
Note- T - Provisional. "ource- Ministry o% Petroleum and Natural Gas. Government o% India) ;downloaded %rom www.indiastat.com=
Ta*le 3 :
Re&inery.(i%e Cru'e Run an' Pro'u,tion o& Petroleu$ Pro'u,t% in In'ia . Part I
;in S444 tonnes=
IOC 3PCL Mu$*ai HPCL Mu$*ai HPCL Di%a8) IOC 9u(a)ati IOC 3arauni IOC 9uBarat IOC Hal'ia IOC Mat)ura
Year 1##!.#1 #otal Production 2rude Run 1##1.# #otal Production 2rude Run 1## .#@ #otal Production 2rude Run 1##@.#/ #otal Production
AOD
A64 A@@
@@45 @>A7
AA4@ A7@@
5D5? 56@6
7?D 735
DD4@ D6?@
37>? >556
D@43 D>5A
76?6 7343
AD6 A6@
@@54 @>64
66>@ 67D>
5@7@ 5>D4
7>5 3A@
D4@4 DD@D
3377 >57>
D7>? 54D?
7>DA 3D5?
@D5 A67
@37A 7D55
A@?> A36>
6D76 6AD7
76> 3?A
D4>7 DD37
>DA3 >734
D3?4 5464
7654 7365
A5A
@35?
A776
6D45
364
D4A?
3354
D373
3?D?
2.
2rude Run 1##/.#4 #otal Production 2rude Run 1##4.#= #otal Production 2rude Run 1##=.#: #otal Production 2rude Run 1##:.#? #otal Production 2rude Run 1##?.## #otal Production 2rude Run 1###.!! #otal Production 2rude Run !!!.!1 #otal Production 2rude Run !!1.! #otal Production 2rude Run !! .!@ #otal Production 2rude Run !!@.!/ #otal Production 2rude Run !!/.!4 #otal Production 2rude Run !!4.!= #otal Production 2rude Run !!=.!:G #otal Production 2rude Run
AA6
7D45
@4?3
6663
>?4
DDDD
>656
5?4@
3A?3
A4> A5@
747? 7A4@
6>?5 AD56
67A> A4?6
355 336
D45> DDD4
>?63 >333
D>>3 5DA3
34?3 3577
A57 AA>
74@A 76@4
A@76 A>@A
67A5 A457
73? 35>
D?D> D5DD
>67@ ?4?@7
5?@3 56?@
7>56 355D
6A5 677
7D7> 7@64
@D53 @A56
6A7@ 6367
773 363
?7D4 ?3>A
>7DD ?45AD
5?3> 56A?
7766 3??5
67> A4D
7A>? 7>>@
@4A5 @573
D543 D6@7
77> 3A@
?>3> D?3?
?4465 ?4@>6
666A 674@
354D 3A@A
AD6 AA5
3A5? 3373
6>AA AD45
5@57 53@?
77D 35@
D4?7 DD46
?456@ ?4>5A
665D 67?6
3@@A 3>4>
A@6 @45
3655 3>47
A74D @447
6DAD 6AAA
3A3 >?6
5?77 56??
?46D> ???4>
57>7 6?4A
737A 3?DA
@A? @73
3D45 3@35
A?3> AA7A
A>3@ @64A
@A5 747
D33> 5?DD
??D@> ?D44@
5A4D 5375
@3@5 7?55
@64 @A5
3D7> 3766
ADD> A@6?
@556 @74@
A73 @A@
D@DA D37@
??4D3 ??@>7
5@4? 64D@
7734 345?
A77 A3?
3DD? 37??
A@@4 @473
@53@ @3A?
5>4 6A3
D@57 D>>6
??756 ?D656
645? 6A?5
7334 3D47
A36 @4D
3DA> 37A7
A747 @?43
7?6A 7A>?
75> 3>?
53?A 6546
?D4D> ?D7A3
6??D 6A?3
7>5D 3D63
@5@ @A?
3A>3 >?53
A7DA @??3
7564 73DA
3@3 ?44D
6A@5 A43D
??457 ??@>3
6>7? A6?3
@?6A @537
@4A @?A
>@D7 ?4D>3
A3?7 @D63
7A?A 7>34
7A4 3@6
A4?@ AAA5
?435> ??A65
6>33 AA4D
76@5 7>53
A@7 A3@
??D56 ?D454
@>3? 76?>
373D >577
7D@ 35>
6>5? A6@>
?D?6D ?D>A5
AD3D A35@
36DA 3335
"ource- Ministry o% Petroleum and Natural Gas. Government o% India) ;downloaded %rom www.indiastat.com=
2:
Ta*le 3@:
Re&inery.(i%e Cru'e Run an' Pro'u,tion o& Petroleu$ Pro'u,t% in In'ia . Part II
;in S444 tonnes=
Year 1##!.#1 #otal Production 2rude Run 1##1.# #otal Production 2rude Run 1## .#@ #otal Production 2rude Run 1##@.#/ #otal Production 2rude Run 1##/.#4 #otal Production 2rude Run 1##4.#= #otal Production 2rude Run 1##=.#: #otal Production 2rude Run 1##:.#? #otal Production 2rude Run 1##?.## #otal Production 2rude Run 1###.!! #otal Production 2rude Run !!!.!1 #otal Production 2rude Run !!1.! #otal Production 2rude Run !! .!@ #otal Production
IOC Paniput
-CRL0 7RL Co,)in
CPCL-MRL0 Manal i Nari$ana$
3RPL A%%a$
NRL Nu$ali. 2ar)
MRPL Man2alore
ON9C Tatipa8a
RPL Ja$. na2ar
EOL Da'i. nar
Total
/ /
67?A A44@
AD7> A@>3
/ /
>A7 ??5>
/ /
/ /
/ /
/ /
/ /
63A@D A?77D
/ /
6AA6 636@
A?67 AAD>
/ /
>7@ ??@6
/ /
/ /
/ /
/ /
/ /
6356> A?6D5
/ /
63A5 A?DD
6>D7 A5D5
/ /
>66 ???@
/ /
/ /
/ /
/ /
/ /
A45A> A563D
/ /
6A@3 63@D
A5?5 A7D3
?D4 ?D@
?4D4 ??@7
/ /
/ /
/ /
/ /
/ /
A?436 A6D>@
/ /
6345 A?5A
@6@? @>D?
574 53D
?44A ??7>
/ /
/ /
/ /
/ /
/ /
AD>A7 A@A56
/ /
74?4 76D?
A?@D AA>>
5A3 574
?4?? ?D?A
/ /
D5 5>
/ /
/ /
/ /
AA43? A376?
/ /
@3>4 7D>5
@?65 @@D?
55D 56A
?54@ ?A6D
/ /
D@5A D>?D
/ /
/ /
/ /
A>44A @D374
/ /
75?D 77D>
@657 @>@A
A55 AA@
?63A ?7?3
/ /
5AAD 53A5
/ /
/ /
/ /
@?543 @A?@@
?>43 DD43
7546 7774
A@AD @?4?
@?> @66
?66A ?@A5
/ /
5757 64@>
/ /
/ /
/ /
@6A66 @3A53
5@33 6?A5
73D@ 7354
A374 @577
@?D @5@
?@@A ?>4A
?3@ D?A
67?5 AD44
/ /
?4D@7 ??>?D
/ /
7>6?? 3A>@6
AD4@ A747
745> 7AD4
AAD6 @46@
AA> A7>
?5A5 ?633
?D>5 ?6A?
A37> @653
/ /
D5AA@ D@455
/ /
>A@?6 ?45666
A5D5 A3DD
@5>3 @7>7
A@7@ @?D5
A6> A@@
?5?6 ?67A
D4AD D547
A465 A637
?5 ?5
D7A6D D>@A6
/ /
?44446 ?47D76
AA@?
74@5
A@A3
@5?
?5AD
?@@A
@@>>
>?
D7>46
/
?46?64
3$
2rude Run !!@.!/ #otal Production 2rude Run !!/.!4 #otal Production 2rude Run !!4.!= #otal Production 2rude Run !!=.!:G #otal Production
@?4?
7A34
@?7@
@65
?6@5
?37>
7DA5
>5
54A66
/
??DAA>
A3?3 @553
76?> 73A6
A3D7 @537
@6A @A5
?>@5 D?D@
?>@? DD44
>5AD ?44@>
>4 >?
544@@ 5D56A
/ /
??56@5 ?D?364
A3D@ @5>4
7537 7>D6
75>7 3?3?
755 76D
D??3 D5??
?356 D46D
??4A> ??34>
>D >5
5?>46 5654>
/ /
??3D55 ?D7??7
A734 @A47
@6A@ @>5>
376D >@34
@7? @3D
DD6@ D5A@
?>?3 D?55
??D@3 ?D4?6
>D >5
D>>A7 55?@5
/ /
??>7A4 ?54?4>
34?@
7D57
336?
@4>
?>5D
DDD7
??@3>
>5
56?76
?57D ?7@5
?5AD@4 ?6@AA?
2rude Run >65A 776D >736 @?3 D4@7 DA46 ?DA5@ >6 5@@?@ A$$r %or Part I and III12 - Indian 1il 2or oration Limited. GP2L - Gindustan Petroleum 2or oration Limited. BP2L - Bharat Petroleum 2or oration Limited. A1D - Assam 1il Division. Note - T - Provisional. "ource - Ministry o% Petroleum and Natural Gas) Govt. o% India. A$$r. - I12 - Indian 1il 2or oration Limited. 2P2L - 2hennai Petroleum 2or oration Limited. BRPL - Bon&ai&aon Re%inery O Petrochemicals Limited. NRL - Numali&arh Re%ineries Limited. MRPL - Man&alore Re%inery O Petrochemicals Limited. 1NG2 - 1il O Natural Gas 2ommissionL2or oration Limited. RPL - Reliance Petroleum Limited. ERL - Eochi Re%ineries Limited. 2RL - 2ochin Re%ineries Limited. Note - T - Provisional. "ource - Ministry o% Petroleum and Natural Gas. Government o% India) ;downloaded %rom www.indiastat.com=
31
Ta*le 3/: Petroleu$ Re&inin2 Capa,ity in In'ia
In%talle' Capa,ity A% on !1>!/> !! In%talle' Capa,ity A% on !1>!/> !!@ In%talle' Capa,ity A% on !1>!/> !!4 ;Million #onne er Annum= In%talle' In%talle' Capa,ity Capa,ity A% on A% on !1>!/> !!= !1>!/> !!:
Re&inery -A0 Pu*li, Se,torAJDC Re&inerie% I> IOC Re&inerie% ?. I12) Di&$oi D. I12) Guwahati 5. I12) Barauni 6. I12) Gujarat A. I12) Eoyali @. I12) Galdia 7. I12) Mathura 3. I12) Pani at II> 3PCL Re&inerie% ?. BP2L) Mum$ai D. ERL Eochi III> HPCL Re&inerie% ?. GP2L) Mum$ai D. GP2L) 0isakh ID> CPCL" Re&inerie% ?. 2P2L) Manali D. 2P2L) Narimanam D> 3RPL" 3on2ai2aon DI> NRL" Nu$ali2ar) DII> ON9C" Tatipa8a DIII> MRPL" Man2alore -30 Pri6ate Re&inery ?. RPL) Mamna&ar D. 8ssar 1il Ltd. 0adinar 9ran' Total
Year o& Co$$i%%. ionin2
?:>==? @?>14 ?>4? ?>@D ?>@6 ?>@A ?>@A ?>76 ?>3D ?>>3 . ?>AA ?>@@ ?>A6 ?@A7 ?>@> ?>>5 1#:# 1### !! 1##= ?>>> D44@ 4.@A ? 6.D ?5.7 / 6.@ 3 @ . @.> 7.A 1@ A.A 7.A : @.A 4.A >@4 @ !>!:? #>=# : D7 /
?#>#: @#>#4 4.@A ? @ ?5.7 / 6.@ 3 @ . @.> 7.A 1@ A.A 7.A :>4 @.A ? >@4 @ !>!? #>=# : D7 /
#/>@: /1>@4 4.@A ? @ / ?5.7 @ 3 @ . @.> 7.A 1@ A.A 7.A 1!>4 >.A ? >@4 @ !>!? #>=# @@ 55 /
##>/: /1>@4 4.@A ? @ / ?5.7 @ 3 @ 1#>4 ?D 7.A 1@ A.A 7.A 1!>4 >.A ? >@4 @ !>!? #>=# @@ 55 V
1!4>/: /:>@4 4.@A ? @ / ?5.7 @ 3 ?D.44J 1#>4 ?D 7.A 1@ A.A 7.A 1!>4 >.A ? >@4 @ !>!? #>=# /@>4 55 ?4.A 1/?>#:
- AJ3 0 11/>==? 11=>#: 1 :>@: 1@ >/: Note - V - 2ommissioned on D6.??.D44@. J - Increased installed ca acity on ?D Manuary) D447. A$$r. - I12 - Indian 1il 2or oration Limited. GP2L - Gindustan Petroleum 2or oration Limited. BP2L - Bharat Petroleum 2or oration Limited. 2P2L - 2hennai Petroleum 2or oration Limited. ERL - Eochi Re%ineries Limited. BRPL - Bon&ai&aon Re%inery O Petrochemicals Limited. MRPL - Man&alore Re%inery O Petrochemicals Limited. 1NG2 - 1il O Natural Gas 2ommissionL2or oration Limited. RPL - Reliance Petroleum Limited. NRL - Numali&arh Re%ineries Limited. M02 - Moint 0enture 2om any. "ource- Ministry o% Petroleum and Natural Gas. Government o% India) ;downloaded %rom www.indiastat.com=
32
Ta*le 34: Pro'u,tion o& Petroleu$ Pro'u,t% in In'ia
; P 444 #onne=
Pro'u,t% -a0 Fro$ Cru'e Oil I> Li2)t Di%tillate% o& ()i,) LPG Mo&as Na htha "BP"LGe'ane 1thers ;LD= II> Mi''le Di%tillate% o& ()i,) Eerosene A#FLR#FLMet A/? G"D LD1 MB1 M#1 1thers ;MD= III> Hea6y En'% o& ()i,) Furnance 1il L"G"LGG"LRF1 #otal Fuel 1ils Lu$e 1ils Bitumen Petroleum 2oke Para%%in Ca' 1thers Ca'es #otal Ca'es 1thers ;G8= Total Pro'u,tion Cru'e T)rou2)put -*0 Fro$ Natural 9a% LPG
!!!.!1
!!1.!
!! .!@
!!@.!/
!!/.!4
!!4.!=
!!=.!:G
!!:.!?G
4!/? 6433 3474 >>43 >5 D>3D 4 //4 37?6 DA?5 5>4AD ?63? A7 D?6 @3A 1?1 1 @67> 6>?5 ??5>D @36 D7D? D675 A? @? ??D 75> #4=1/ 1!@/// D46A
=4@# 6773 >@>> >?34 36 D33D 4//!# >@3? DA>A 5>3>> ?745 66 D?D A5? 1#!4= 7633 675> ?DDD7 @A? DA@? D736 6A 57 3D 7A? 1!!!!/ 1!: :/ DD4A
?=1# 6>45 ?45@? >@A4 3D 574A 44#@: ?44D3 54A5 64D47 D47> 67 D65 A74 1#4?/ 7AD> 6@53 ?D?@7 @36 D>6? D@A> 6D 5 6A ?433 1!/1/! 11 44# D574
@1#:1 A563 ?4>>> ??5?7 3> 6547 =!!1? ?4?37 6D3> 655?@ ?@A> 65 D6D A@7 1/:/ 3757 6@5A ?557D @@@ 55>7 D765 A5 4 A5 ?D65 11@/=@ 1 1?/! D5D4
@ ?=4 AA74 ??4A7 ?6?44 3? D?53 = 4!# >D>3 AD4? 6A>45 ?A6@ 5@ DD@ A@? @ !4 ?4A@4 66?4 ?6734 @6@ 556> 5?@D @6 6 @3 ?4?4 11?4:# 1 :11= DD64
@ / : AADA ?4A4D ?6A4> >3 ?3>? =//@ >473 @?>@ 67A7D >D5 5> D?D @@5 ?#1 ?45D4 5>3A ?654A @77 5A7@ 5?3D @5 5 @@ / 11#:4! 1@!1!# D?3A
@?1!/ @5?A ?DA5> ?@@@4 7> DA>4 :1 4 36>? 734A A56@A 345 5D ?37 @@? 4#@1 ?D5DA 557D ?A@>7 3DA 53>? 577> @5 /D / / 1@4 =! 1/=441 D4>5
/!111 @75D ?6?@7 ?@664 / D77D :==/# 77>6 >?47 A35@? @7? / / 7?@ ?1:! ?D@53 5?@7 / 33? 6A47 6?D> @6 /? / D736 1//#@! . D4@4
A$$r.- LPG - Li.ue%ied Petroleum Gas. G"D - Gi&h " eed Diesel. LD1 - Li&ht Diesel 1il. A#F - Aviation #ur$ine Fuel. Note - LD - Includes Pro ylene) 2/5) Pro ane) Ge'ane) " ecial Boilin& Point " irit) Ben:ene) #oluene) Petroleum Gydro 2ar$on "olvent) Natural Ge tane) Methyl #ertiary Butyl 8ther) Poly Iso$utine) PBF" and M8EF". MD - Includes Mineral #ur entine 1il) MP/A) Linear Alkyl Ben:ene Feed "tock) Arome') Mute Batchin& 1il) "olvent ?6DA) Low "ul hur Geavy Fuel G"D) DG2B and " ecial Eerosene. G8 - Includes 2ar$on Black Feed "tock) "ul hur) "olar 1il) LAR1 and 8'tracts.
33
T - Provisional. "ource - Ministry o% Petroleum and Natural Gas. Government o% India) ;downloaded %rom www.indiastat.com=
Ta*le 3=: Pro'u,tion -Per,enta2e0 o& Petroleu$ Pro'u,t% in In'ia
Pro'u,t% Li&ht Distillates Middle Distillates #otal Fuel 1ils Lu$es Bitumen 1thers Total Pro'u,tio n RBF O LossesLInv entories Cru'e Run 1##1. # ?3.3 A?.5 ?3.7 4.3 5.5 ?.? #/ @ 1!! 1##4. #= D?.D A? [email protected] ?.? 5.6 4.3 #@>? @.D 1!! 1##=. #: D4.A A?.@ [email protected] ? 5.@ 4.3 #@># @.? 1!! 1##:. #? D4 AD.? ?7 4.> 5.5 4.3 #/>1 A.> 1!! 1##?. ## D4.? AD.3 ?@.? 4.> 5.A 4.3 #/> A.3 1!! 1###.! D?.5 AD.5 ?5.D 4.> D.> ?.3 # >/ 7.@ 1!! !!!.1 D6.D A4.7 ?? 4.7 D.@ 5.D # >/ 7.@ 1!! !!1. D6.7 A4.7 ??.6 4.@ D.6 5.6 #@> @.3 1!! !! .@ DA.6 6>.7 ?4.3 4.@ D.@ 5.6 # >4 7.A 1!! !!@./ [email protected] 6>.5 ?? 4.A D.3 5.5 #@>1 @.> 1!! !!/.4 DA.3 6>.? ??.@ 4.A D.@ 5.6 #@ 7 1!! !!4.= D6.> 6>.A ?? 4.A D.7 5.5 # 3 1!! !!=. :G D@ 63.@ ?4.7 4.@ D.7 5.3 # >@ 7.7 1!!
A$$r. - RBF - Re%inery Boiler Fuel. Note - T - Provisional. "ource- Ministry o% Petroleum and Natural Gas. Government o% India ;downloaded %rom www.indiastat.com=
C>
Con%u$ption Ta*le C1: Con%u$ption o& Petroleu$ Pro'u,t% -Pu*li,APri6ate Se,tor0 in In'ia
;in S444 tonnes=
Pro'u,t% A> Pu*li, Se,tor 1> Li2)t Di%tillate% LPG Mo&as Na htha NGL 1thers > Mi''le Di%tillate% "E1 A#F G"D1 LD1 1thers @> Hea6y En'% Furnace 1il L"G"LGG" Lu$esLGreases Bitumen
1##:.#?
1##?.##
1###.!
!!!.1
!!1.
!! .@
!!@./
!!/.4
!!4.=
!!=.:
14:/ 6A3? A?3D 67?@ 7@3 6>A /#:1= >373 D?43 5@47? ?D5A 6D6 1/@?! @@A? 65D5 35A D?73
1:#4? A46? AA47 @@AD 554 6D3 41=?= ?4A>> D??D 57D?7 ?D73 634 141 @7@7 6A57 33A D6?D
!/
@4D> A>4> 7>74 >? 676 4/ 4# ?475? D?>7 5>D37 ?A?D A5D 14#1# @3?@ 67@5 >?A D37>1::! @@?5 @@?5 34A> @ 67> 4 ?4/ ?47?6 DD6> 57>53 ?5>> AA6 14@= @57? 6>3> 7>7 D@?3
#1= 75?4 74?? 3?D3 D7 664 4!==1 ?4??6 DDA@ 5@A?A ?D4D A76 14414 743A 6A5? 3?> D6D3
@4=: 3?65 7A74 7D36 5D A53 4!444 >747 DD@> 5@A56 ?6?5 @5D 1=!! @>6? 67?? >53 D367
4!! >43> 73>A 75D> 4 @3> 4!4/? >6D@ D636 5@37A ??3? A3D 1=4?! 7D47 6@55 3?@ 55@7
4@1: >>@7 3?@D @AA4 4 @53 41#1# >5>A D3?? 53437 ?43A A6? 1
4: 34AA 6646 77> 55?3/!!? >>7@ 3DA6 A?AA 4 @D5 4! ?1 >575 5D>A 5@543 356 67? 1:/1@ 3DD? 5>47 3>D 563A
4@4! ?4A54 3345 A5D7 4 @>4 441?# >6?D 5>3D 64@?7 7D4 6A3 1:/!1 3?3@ 55@? 373 53?3
34
Petroleum 2oke Para%%in Ca' 1ther Ca'es 1thers Total -A0 -E+,l> R3F0 3> Pri6ate Se,tor 1> Li2)t Di%tillate% LPG M" Na hthaLNGL Ben:ene 1thers > Mi''le Di%tillate% "E1 A#F G"D1 LD1 1thers @> Hea6y En'% Furnace 1ilLL"G" Lu$esLGreases Bitumen Petroleum 2oke 2BF" 1thers Total -30 Total -AJ30 Re&inery Fuel 9ran' Total
DD7 D3 6A >5 :#?@? 1 / DDD 4 ?376 4 D3 11?: ??37 4 4 4 4 11/1 A?7 D6@ 4 4 4 573 //4 ?/ #! @41/
5?A 5@ 7@ >6 ?/:== 4
5?? 4 DD5> D5 4 1=// ?@66 4 4 4 4 14:# ?D4@ D?D 4 73 35 4 4:#= #!4= @:!!5D3 A5 3> 7@ #!=41 /!4? 5>D 4 D35? 55 34D 11:4 ??@7 4 3 4 4 1 ! 376 5D3 4 4 4 4 =/@4 #:!?= 44//
6?6 65 @D @3 ?##?= :4// 645 4 5@?6 3 5A?> =1@ A>5 4 D4 4 4 1#@1 ?D>5 D6@ >@ 56 D54 5D 1!!?? 1!!!:/ =#!!
5@7 6A A? ?3> ?#!# =:! 6?3 4 5@44 4 D@36 ::? 5?3 4 5? 5>4 5> @?=! ?5@@ 5?3 ?A@ ?65? 7A A?6 11@/! 1!!/@ :
55A 6? ?5 ?7@ #!1 / ?1?? D43 4 6@6A 4 555A 141! @>3 4 ??4 @A4 AD /@!/ ?43@ 5?D ?5> DDD3 76 6@A 1/!! 1!/1 = :=4!
543 6? D4 ?33 # 1@! #@@@ D?@ D 6A5> 4 6A7@ 1/:4 346 4 ?>> 653 56 /?1@ ??4A @?? @ DA@> D54 D>D 14= 1 1!::41 ? /!
66A @4 D4 D77 #/4#@ #??: D73 3> 7665 4 D477 1#?: 4 4 ?A@6 5>? 5D 41=: ?43? A@3 D? D@36 D65 A74 1:!/1 111=@/ ?4@: 1
6>@ AA ?> D77 #1:! #=4/ 634 5>5 745> 4 ?76D /1/1 ?@3 ? 5335 6> 64 ::1= 744 ??3> D5 665D ?A7 ?D?A 1411 11@ 1@ #1/1 @4/
@6A @7 4 66@ #:#/! 11: = 5?> 63D 3AA> 4 D5@@ /!= >5 ? DD7> 4 55 ?=:: ?47? ?4DD ?6 67>@ 364 >56 ?!# 1 !:/#K 1!# ! 1@1==#
?:?!/ #/ = 1! =@! 1!=#:/ 1!::!4 111::= 114##1 1 !1:1 A$$r. - LPG - Li.ui%ied Petroleum Gas. Mo&as - Motor Gasonline. NGL - Natural Gas Li.uid. "E1 - "u erior Eerosene 1il. A#F - Aviation #ur$ine Fuel. G"D1 - Gi&h " eed Diesel 1il. LD1 - Li&ht Diesel 1il. L"G" - Low "ul hur Geavy "tock. GG" - Got Geavy "tock. 2BF" - 2ar$on Black Feed "tock. Note - T - Provisional. W - Private consum tion %i&ures includes im orts also. "ource- Ministry o% Petroleum and Natural Gas. Government o% India) ;downloaded %rom www.indiastat.com=
35
Ta*le C : A6era2e Annual Co$poun' 9ro(t) Rate% o& Con%u$ption o& Petroleu$ Pro'u,t% in In'ia -Dt) to Et) Plan0 ;in Q= E Plan DI Plan D Plan DII Plan DIII Plan IE Plan !! . Pro'u,t 1#?!. 1#:/.:# 1#?4.#! 1## .#: 1##:.! !: ?4 Li.uid Petroleum Gas M" Na htha 1thers Li2)t Di%tillate% A#F "E1 G"D LD1 1thers Mi''le Di%tillate% Lu$es F1LL"G" Bitumen 1thers Hea6y En'% Total Sale 3.7 /4.? ?4.6 /?.7 4>= 3.D 5.7 >.3 /? 4 =>: /D.5 D.6 /D.6 ?.@ 1>4 />? ?3.6 @.> A.5 ?.D :> 5.D > @.> /?.? 4.D =>= 5.D D.5 /D.@ A.A 4>/ ?3.> ?4.> ?.6 ?6.D ?>@ A.3 @.7 3.@ 6.6 5 :>: @.> D.? ?D.@ 3.A / =># ?4 @.3 @.6 7.D :>4 @.7 5.> >.? /5.A 3.3 :>/ ?.7 6.@ A.> 6.> />= =>? ?D.@ 7.D D4.? 53.7 14>@ 4.> 4.A 4.> A.6 A.D 1 D.5 D.6 D.@ D7.@ />/ /># 3.D 7.5 /5.A NA NA 5.D 4 A.@ 4 NA NA 6.7 D.@ 5 NA NA 5.7
Note - T - Provisional. NA - Not Availa$le. Growth rates are $ased on consum tion e'cludin& rivate arties9 im orts. "ource- Ministry o% Petroleum O Natural Gas) Govt. o% India ) ;downloaded %rom www.indiastat.com=
36
Ta*le C@: Per Capita Con%u$ption o& Sele,te' Petroleu$ Pro'u,t% in In'ia
;in E&s.=
Year ?>3A/3@ ?>3@/37 ?>37/33 ?>33/3> ?>3>/>4 ?>>4/>? ?>>?/>D ?>>D/>5 ?>>5/>6 ?>>6/>A ?>>A/>@ ?>>@/>7 ?>>7/>3 ?>>3/>> ?>>>/44 D444/4? D44?/4D D44D/45 D445/46 D446/4A D44A/4@ D44@/47T
Nap)t)a 6.D 6.D 5.@ 6.5 6.? 6.? 6.? 6 5.3 6 6 6.6 6.> @.6 3.? 7.3 7.> ??.A 7.? ?5.@ ??.? ??.5
M>S> 5 5.D 5.@ 5.> 6.D 6.D 6.D 6.D 6.A 6.> A.? A.D A.6 A.7 @ @.6 @.3 7.5 7.7 3 7.> 3.D
S7O 3.5 3.@ >.? >.3 ?4 ?4 >.> ?4 ?4.5 ?4.@ ?4.D >.@ ?4.5 ?4.> ?4.> ?4.6 >.3 ?4.? >.D >.? 3.7 3.6
HSDO ?>.7 D4.@ DD.5 D5.3 DA.D DA D@.> D3.7 54.@ 55.6 5A.D 5@ 57.3 53 64 5@.> 5A.@ 5A.A 5A.> 53.A [email protected] 57.>
LDO ?.A ?.A ?.@ ?.3 ?.3 ?.3 ?.7 ?.7 ?.@ ?.@ ?.6 ?.5 ?.5 ?.5 ?.A ?.6 ?.@ D ?.? ?.6 4.3 4.@
F>O>-Re2ular0 A 6.> A.5 A.3 A.A A.5 A.3 @.D A.> @.> 7.? 7.? 7 @.7 @.> @.D 3.D 7.3 7 3.> 3.? 3.D
LSHSAHHS A.5 A.A A 6.> A.5 A.6 A 6.7 6.> 6.3 6.@ 6.7 6.A 6.7 6.> 6.> 6.6 6.@ 6.A 6.5 5.@ 5
In'ia.TotalL Sale%A Con%u$ption A7.5 A>.5 @D @5.7 @>.? @3.6 74.@ 7D.> 7A.D 3?.? 7>.D [email protected] >4.? >D.D ?4D ?45.7 >7.3 ?43.? ??D.> [email protected] ???.7 ??A.A
V - All India actual consum tion o% all roducts incl. Re%. Fuel O International Bunkers u to the year ?>>A/>@. Later on total consum tion includes im orts %rom Pvt. Parties and 8'cludin& RBF. T - Provisional. "ource- Ministry o% Petroleum and Natural Gas. Government o% India) ;downloaded %rom www.indiastat.com=
Ta*le C/: Se,tor.(i%e -En' U%e0 Con%u$ption o& Sele,te' Petroleu$ Pro'u,t% in In'ia
; P 444 tonne=
Petroleu $ Pro'u,t Gi&h " eed Diesel 1il
Year ?>>?/>D ?>>D/>5 ?>>5/>6 ?>>6/>A ?>>A/>@ ?>>@/>7 ?>>7/>3 ?>>3/>> ?>>>/44 D444/4? D44?/4D D44D/45 D445/46 D446/4A D44A/4@
Tran%port D4D3D D?7D@ D54A> D676D D3456 D4D7@ D4@@D D?5@7 DD53@ DD?>7 D?@@D D?35D D?77D DDA4A D?A73
Plantatio n 56@ 533 6>6 @D? 73> @735 @3>? @7A4 7A>5 76>7 7DD7 7D73 7D?4 767> 74?A
Po(er Mi%,ellan 9eneratio In'u%try eou% n Ser6i,e% ??4 ?6?@ AD@ ?43 ?63> A3D ??A ?A?D @>3 DD> ?735 33@ ?@7 D53@ 373 DD36 5@43 D4@3 D5>4 5365 DD3A DA7@ 6DA6 DD74 D@DD 53>4 D7>@ DA>@ 5?5D DA?@ DA4> D@37 D654 D6>7 DA63 D57> DAD@ D66D D>DA D7@> DA5@ D7>3 D@35 D66@ DA3@
Pri6ate Sale% / / / / 7 / / / 3 D4 5? ??4 ?>> ?A@6 53?@
Total DD@34 D6D>5 DA373 D3D@? 5DD@? 5A4?> 5@47? 57D?7 5>D>A 57>A3 5@A6@ 5@@66 57476 5>@A? 64?D6
37
Li&ht Diesel 1il
Furnace 1il
Low "ul hur Geavy "tock
D44@/ 47;P= ?>>?/>D ?>>D/>5 ?>>5/>6 ?>>6/>A ?>>A/>@ ?>>@/>7 ?>>7/>3 ?>>3/>> ?>>>/44 D444/4? D44?/4D D44D/45 D445/46 D446/4A D44A/4@ D44@/ 47;P= ?>>?/>D ?>>D/>5 ?>>5/>6 ?>>6/>A ?>>A/>@ ?>>@/>7 ?>>7/>3 ?>>3/>> ?>>>/44 D444/4? D44?/4D D44D/45 D445/46 D446/4A D44@/ 47;P= ?>>4/>? ?>>?/>D ?>>D/>5 ?>>5/>6 ?>>6/>A ?>>A/>@ ?>>@/>7 ?>>7/>3 ?>>3/>> ?>>>/44 D444/4? D44?/4D D44D/45 D445/46 D446/4A D44A/4@ D44@/
D?@?? 34 3A 3D 35 @3 @@ @6 @5 A> A3 A5 64 A7 6> 6> A5 565 55> 64A 664 5D? 5A? 5?A 56> 5A? 5?3 543 D@5 55> DA? D7@ ?5 DD ?4 ?D D 5 5 5 A 7 ? / / / / 4 4
7>?6 57 5A 5@ 5A 6? 56 56 6? 67 6@ A? A@ 6@ 57 D3 ?54 ?@6 ?>4 ?3@ ?33 D?6 DA4 D76 5?> D3@ D7@ 5DD 57@ DA? TT TT 6> D> 5A 64 D7 5D DA D? 65 D7 DD D? 66 A / 4 4
D3>6 D5@ D?? ?>4 ?@> ?@@ ?36 ?3> ?74 ?7@ D?A ?@A ?75 ?67 33 @A @7 AD7 AAA 6>4 A34 7D4 7@6 A6> A7? A?A 63? AA? 633 57? 5?6 DA6 ?35A ?7>3 ?77> ?@7@ ?@D6 ?767 ?@56 ?@?6 ?D>7 ?5@5 ?@A7 ?645 ?@5> ?A@> ?D53 A@4 D>3
A?43 @66 @67 @DA @6? 744 @55 @D@ @6@ 7@> @3? @D? 7A6 7D7 @D3 6DD ?55 5@>D 5>@D 5@45 5>66 635@ 6@>? 63@A 63D6 6>4? 6A65 A4A7 67?6 65@6 ?765 >75 D@4A D55A D?DD D5@@ DDA3 DD6@ D634 D63D D>34 545@ D>63 D75A D@>6 DD@5 ?6A5 ?5>4 ?5A3
54>? 6@A 6D> 657 66? 55@ 54@ 5DD 5A3 6@? 5>> 5?D 5>4 DA4 D>4 D74 557 D?? DD7 56D @3A 64A 673 @63 746 7@5 7A5 367 ??44 ?33? A767 A@44 DD 3? 63 7D ?6? ?@? ?7? D45 D?D 554 5@? 57D 556 7>@ ?7?5 ?>A7 ?74A
DD63 / / / / / / / / / / 5>4 @A4 5>D D>? 6> 4 / / / / 67A @@4 A?7 ?D4@ 376 ?D>5 ?5@@ ?43@ ??4A ?4>> ?435 / / / / / V V V V V V V V V V V V
6D3@@ ?6@D ?647 ?574 ?5@> ?5?? ?DD5 ?D5A ?D73 ?A?D ?5>> ?A>D D4@5 ?@?> ?67@ 335 7D4 6>57 AD75 A4D@ A357 @>7? 7?>6 7?@3 7>75 7@>4 7@@6 36A? 34D7 35?? >?A6 3?3@ 6AD6 6D@A 5>>6 6?@@ 64AD 6?3> 65?5 65D5 6A57 67@5 6>3> 6A5? 67?? 6@55 6646 5>47 55@?
3.
47;P=
A$$r. - ;P= - Provisional. Note - V - L"G" sales throu&h vt. arties included in Furness 1il sales. TT - Included in Miscellaneous services. Breaku not availa$le. "ource - Ministry o% Petroleum and Natural Gas. Government o% India) ;downloaded %rom www.indiastat.com=
D>
I$port%
Ta*le D1: Net I$port o& Cru'e Oil an' Petroleu$ Pro'u,t% *y In'ia
;Nty. P 444 #onnes) 0alue- Rs in 2rore=
Year ?>>4/ >? ?>>?/ >D ?>>D/ >5 ?>>5/ >6 ?>>6/ >A ?>>A/ >@ ?>>@/ >7 ?>>7/ >3 ?>>3/ >> ?>>>/ 44 D444/ 4? D44?/ 4D D44D/ 45
Cru'e Oil Muantity Dalue D4@>> D5>>6 D>D67 543DD D756> D756D 55>4@ 566>6 5>343 A734A 764>7 7374@ 3?>3> @??3.6D 73D4.4A [email protected]@ [email protected] [email protected] ??A?7 ?3A53.?> ?A37D ?6>?7 644D3 @A>5D @45>7 7@?>A
Petroleu$ Pro'u,t% Muantity Dalue @4?D @A4> 7A@6 346D ?4@>7 ?@>44 ?7?45 D4A3> D54AD ?A3@D >4D /54A@ /54@? 5@[email protected] 6445.@D 67A5.5D AA5D.@D A>56.55 ?476A.37 ?5A63.7? ?5465 ??>74 ?5633 66D? />74 /D4D?
Total Muantity Dalue D@7?? 54A45 5@3?? 533@6 5346@ 66D6D A?44> AA435 @D3@4 75@@7 76>>> 7A@A4 73>D3 >776.@> ??3D5.@7 ?A65>.?3 ?@DD?.?6 [email protected]@ [email protected] 5D43@.> D3>?A D@337 A5A?@ 745A5 A>6D7 76?76
Note - T - Provisional. - W - MM# "ource - Ministry o% Petroleum and Natural Gas. Government o% India) ;downloaded %rom www.indiastat.com=
Ta*le D : 9ro%% I$port o& Cru'e Oil an' Petroleu$ Pro'u,t% in In'ia
;Nty. P 444 #onnes) 0alue - Rs in 2rore=
Ite$ A> Cru'e Oil 3> Petroleu$ Pro'u,t% I> Li2)t Di%tillate% LPG M" Na htha Pro aneLM#B8 II> Mi''le Di%tillate%
!!/.!4 Mty> Dalue #4?=1 11:!!@ 4@#1 D556 D55 DD?6 @?4 1! : ##
66?5 A4? 64D> ?454 !/:!!4.!= Mty> Dalue ##/!# 1:1:! =!:/ D7?> 63A D675 5>7 1=14 1/41/ @A7> ?D35 A75A >?7 @#/?
!!=.!: Mty> Dalue 11!?4? 1###1 ?=41 DD33 6D? A676 6@3 @// @!#: A73D ?5D@ ?6374 ???> =?1/
!!:.!? Mty> Dalue 1 1=: :=## #/= D3D> 5D@ A>@A 56D 4/ / #!1! 3A@5 ??5D ?364? >?6 1:4!:
3:
A#F "E1 G"D 1thers III> Hea6y En'% F1LL"G" Lu$esL1thersG8I Total 9ran' Total
5 D?4 3?6 4 /1! 76? ?@@> ?? ? 1!/=?#
?6 6D> ?@46 4 ?=? @>D D?7@ 1/??? 1@1?#1
D 33? 75D 4 @#?? 73> 5?>> 11=:: 111!?=
?? DD?6 ?7D5 4 :11@ ?4>> @4?6 44:4 1#: ::
D ?6D6 >?3 4 4#:1 >3@ 6>3A 1=#== 1 :? /
?7 6DA4 DA67 4 1!/:? ?637 3>>? /!@?# =!@?!
5 D63> D>5D / :?@! ?D6? @A3> :1= 1//@??
D4 35D6 >?@5 / ## = D544 D7@D7 :=//@ @/#1/
T - Provisional Note - G8I - Includes Bitumen) Lu$e 1il Base "tock)) Low "ul hur Ca'y Residue) 2ar$on Black %eed "tock) Ru$$er Processin& 1il and Para%%in Ca'. "ource - Ministry o% Petroleum and Natural Gas. Government o% India) ;downloaded %rom www.indiastat.com=
Ta*le D@: Muantu$ an' Dalue o& Cru'e Oil I$porte' *y Pu*li, Se,tor Oil Re&inin2 Co$panie% an' Pri6ate Oil Re&inin2 Co$panie% in In'ia
;Nty. - in Million Metric #onne( 0alue - Rs. in 2rore=
Year
I$port% *y PSU% Muantity @> 77.A [email protected] Dalue ?D5A54 ?A7@3> ?743D6
Pri6ate Co$panie% Muantity 54.6 56 56.@ Dalue 63?7D @?564 7D53D
D44A/4@ D44@/47 D447/43T
"ource- Lok "a$ha "tarred Nuestion No. 57D) dated on ?7.46.D443. ;downloaded %rom www.indiastat.com=
E>
E+port%
Ta*le E1: E+port o& Cru'e Oil an' Petroleu$ Pro'u,t% &ro$ In'ia
;Nty. P 444 #onnes) 0alue - Rs in 2rore=
Year ?>>4/>? ?>>?/>D ?>>D/>5 ?>>5/>6 ?>>6/>A ?>>A/>@ ?>>@/>7 ?>>7/>3 ?>>3/>> ?>>>/44 D444/4? D44?/4D D44D/45 D445/46 D446/4A D44A/4@ D44@/47T D447/43T ;A ril/"e t.=
Cru'e Oil Muantity Dalue / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / /
Petroleu$ Pro'u,t% Muantity Dalue D@63 ?445.>6 D>5@ ?D?6.@A 57?> ?@[email protected] 6456 ?A43.3? 5DA6 ?A37.5@ 565A ?35?.>3 5?@D D436.73 D53? ?D@@ 7D4 54@ 76@ @>3 35@A 7@7D ?44@A 3D?> ?4D3> ?43@3 ?6@D4 ?@73? ?3D?? D>>D3 / / / / / /
Total Muantity Dalue D@63 ?445.>6 D>5@ ?D?6.@A 57?> ?@[email protected] 6456 ?A43.3? 5DA6 ?A37.5@ 565A ?35?.>3 5?@D D436.73 D53? ?D@@ 7D4 54@ 76@ @>3 35@A 7@7D ?44@A 3D?> ?4D3> ?43@3 ?6@D4 ?@73? ?3D?? D>>D3 D?.A?W 6@7D4 5D.5>W 34?7D ?>.>4W 6>>3?
Note - T - Provisional. - W- MM# "ource - Ministry o% Petroleum O Natural Gas) Govt. o% India. ;downloaded %rom www.indiastat.com=
4$
Ta*le E : 9ro%% E+port o& Cru'e Oil an' Petroleu$ Pro'u,t% &ro$ In'ia
;Nuantity - P 444 #onne( 0alue - Rs. in 2rore=
Ite$ Cru'e Oil Petroleu$ Pro'u,t% I> Li2)t Di%tillate% LPG M" Na hthaL NGL #AM8 Re%ormate Mo&as 1thers II>Mi''le Di%tillate% "E1 G"DLLD1 A#F 1thers III> Hea6y En'% F1LL"G" 0G1LLu$es 2okeLBitumen 1thers Total
!!!.!1 Mty> Dalue
!! .!@ Mty> Dalue
!!@.!/ Mty> Dalue
!!/.!4 Mty> Dalue
!!4.!= Mty> Dalue
!!=.!:G Mty> Dalue
/
1
/#@4
//#@ 4 D55@ D4@7 >4 4 4 4 @?:4 4 5?73 @>7 / 1# 1 ??D4 ?4? 744 / 1! ?#
4/:4 4 54?? D5DA ?5> 4 4 4 /@@: 4 5A67 7>4 / 1!4= >4D ?4> 6A / 1!?=?
4//? 4 D>7> D?7@ 35 D?4 4 4 :?/1 4 @?3? ?@@4 / 1@@1 ?5?4 ?7 6 / 1/= !
:1!! 4 64D? D@A5 ??7 54> 4 4 ?:1@ 4 @7@5 ?>A4 / #=? >D3 5@ 6 / 1=:?1
= ?? ?6A D3>7 D>D@ 4 5D4 4 4 ##
D47 7D3@ D634 / 1#4! ?7>D ?4D A@ / 1? 111141 54@ A@DA A454 4 AA? 4 4 1==#! 6@4 ??73D 6663 / 1: = ?A?7 ?57 7D / ## ?
:4=4 A5 DD75 6>>@ ?4 D55 4 4 11@== ?D? 36@6 D73? / 4:= ?34? 74? 76 / 14!:
1:!@ ?@6 AA7> ?4@76 DA A>4 4 4 =14 57? ?37>3 @>35 / @4@= DD6@ ?D4A 36 / /=: !
1
#= 3@ 5@>@ 3543 4 D4@ 4 4
@ =/: D37 ?4A53 D?D4A 4 @?7 4 4 /!??@ A6? 5446A ?4D>7 / ==/ 6>33 @44 ?4A6 / ?!1:
D33D ?57 ?D4D 4 1:4: ?A>7 ?@4 @?: A43 ?37> 4 ?37> ?@=4
5D75 DD4 ?66D 4 !/= ?37D ?76 =#1 5D4 57? 4 57? :=:
14/4: ?A4 ??@6A 5@@D / /=/1 57A> D>A A37 / @ @#/
A$$r. - #AM8 - #ertiary Amyl Methyl 8ther. Note - T - Provisional. "ource - Ministry o% Petroleum O Natural Gas) Govt. o% India. ;downloaded %rom www.indiastat.com=
41
Ta*le E@: Petroleu$ Pro'u,t% E+porte' *y PSU% an' Pri6ate Co$panie% &ro$ In'ia
; in S444 #onnes=
-April !!/ to January !!40 Pro'u,t% PSU% Pri6ate Co$panie% Petrol 73 DD3@ Na htha DDA4 ?DA G"D ?446 63AD Lu$esLL1Bs ? 4 Fuel 1il ?64A 4 0acuum Gas 1il A6 65 AF# >4@ ???@ "E1 4 ?? Re%ormate 547 4 Bitumen 55 4 Para%%in Ca' > 4
"ource- Lok "a$ha "tarred Nuestion No. 5?4) dated on D6.45.D44A. ;downloaded %rom www.indiastat.com=
F>
Sale% an' Mar8et%)are%
Ta*le F1: Sale%ACon%u$ption o& Petroleu$ Pro'u,t% an' Mar8et%)are o& Oil Co$panie% in In'ia
;Nty. P 444 tonne=
Year
I SAC "L2 Q "L2 Q "L2 Q "L2 Q "L2 Q "L2 Q "L2 Q "L2 Q "L2 Q "L2 Q "L2 Q "L2 Q
I>O>C 5D5@D [email protected] 5D>4@ AA.> 55A4? AA.? 5@5A> A5.> 5>3A3 A5.5 6D4A6 A5.? 656@A A?.@ 6A63> A4.D 6>5>? A4.> 673?D 67.3 67?A? 6@.> 6@55@ 66.A
3> S)ellA 3PCL ?4@33 ?3.3 ??64> ?>.6 ?D4>> ?>.> ?5?@4 ?>.A ?67@5 ?>.7 ?A75D ?>.> ?@5A@ ?>.6 ?766A ?>.5 ?33>6 ?>.A ?>5@3 ?>.6 ?>467 ?> ?>365 ?>.?
E%%oA HPCL ??467 ?>.6 ??A?? ?>.A ?D4?? ?>.3 ?DA33 ?3.@ ?6?A? ?3.> ?A6@4 ?>.A ?@444 ?> ?@D6> ?7.> ?76>7 ?3 ?7337 ?7.> ?76>> ?7.6 ?3DD3 ?7.A
Calte+A HPCLL -DMU0 / / / / / / / / / / / / / / / / / / / / / / / /
I3P D6>3 6.6 D@3@ 6.@ D3@4 6.7 D>>4 6.6 5D75 6.6 567? 6.6 5A>7 6.5 577D 6.D 6?55 6.5 5>A> 6 5767 5.7 57@> 5.@
Ot)er% CO% 57> 4.7 5>4 4.7 56? 4.@ 5>4 4.@ 675 4.@ A47 4.@ 6D4 4.A ?3?? D 75@ 4.3 >@4 ? ?@63 ?.@ ?>63 ?.>
?>>?/>D ?>>D/>5 ?>>5/>6 ?>>6/>A ?>>A/>@ ?>>@/>7 ?>>7/>3 ?>>3/>> ?>>>/44 D444/4? D44?/4D D44D/45
I$port% *y P6t> Partie% / / / / / / D4D7 5 D5?5 5.? ?>66 D.A 66AD A.5 A7>@ @.6 @65A @.@ ?4433 ?4.? ??564 ??.5 ?644D ?5.6
Total A@>76 ?44.? A3>4D ?44.? @43?D ?44.? @7A?6 ?44 7635? ?44 7>?@3 ?44 36D>4 ?44 >4A@D ?44 >743@ ?44 ?44476 ?44.D ?4465D >>.> ?46?D@ ?44
42
D445/46 D446/4A D44A/4@ D44@/ 47W
"L2 Q "L2 Q "L2 Q "L2 Q
6@773 65.6 634?3 65 6@?@4 64.3 A56DA 66.D
D4D>7 ?3.3 D4@>7 ?3.A D4677 ?3.? DD@@? ?3.3
?3A77 ?7.D ?>4>? ?7.? ?354> [email protected] ?>@>3 [email protected]
/ / / / / / / /
6?@D 5.> 6A>6 6.D 65?@ 5.3 J
D5?@ D.? D?>5 D D664 D.D D?A@ ?.3
?A@D? ?6.A ?746? ?A.5 D?A?? ?> DD34>T ?3.>
?477A? ?44 ???A>D ?44 ??5D?5 ?44 ?D476> ?44
"L2 - "alesL2onsum tion. Note - V - Included under 8ssoLGP2L %rom ?>34/3? 1nwards. - 2onsum tion e'cludes RBF. W - Provisional J - IBP has $een mer&ed with I12. T - Private consum tion %i&ures includes im orts also.
"ource- .Ministry o% Petroleum O Natural Gas) Govt. o% India. ;downloaded %rom www.indiastat.com=
Ta*le F :
StateACo$pany.(i%e Nu$*er o& Retail Outlet% o& Petroleu$ Pro'u,t% in In'ia -A% on !1>!/> !!?0 IOCLAAOD ?5>? 6@ 664 3A6 D?5 D4? D? >?6 3@3 ?A3 ?7A 553 ???5 7@? 7A5 ??>6 A5 >6 ?> 6? 6>4 ?65@ ?43@ ?6 ?53A 53 D56@ HPCL 7A5 4 @? DAD ?57 >@ 5? 646 557 @5 >> ?@5 AD6 6@@ 574 337 4 ?@ D D ?35 @55 @A6 5 75> 4 >?@ 3PCL 74@ ? DD D>A ?63 ?4A 5> 655 DA6 AD >4 ?63 A?> 53? 67D ?4?4 D @ 4 5 D53 A66 A6@ ?? 77> 4 >?@ Total D3A4 67 AD5 ?64? 6>3 64D >? ?7A? ?6A> D75 5@6 @6> D?A@ ?@43 ?A>A 54>? AA ??@ D? 6@ >?? D@?5 DD3@ D3 D>46 53 6?73 IOCLAAOD >AD 5> 577 AA? ?A5 ?AD ?3 @6A A3A ?D6 ?A6 D5> 3A3 AD5 @4D >?5 6D 7A ?A 57 5A? >DD 33@ ?D ?453 5@ ?7D3 -A% on !1>!/> !!:0 I3P 5@5 D D@ DD5 6? 67 5 D64 DD6 D3 ?4 @7 ?3? ?>D >? D?? A > 4 D 76 6D@ ?5? D D5@ ? 63? HPCL 7?A 4 @? DD7 ?64 >A 5? 5>5 547 @D >@ ?A3 676 66A 5A4 3@6 4 ?A D D ?@6 A77 @D6 5 7?6 4 374 3PCL @A5 ? ?A D3D ?57 ?4A 57 6D5 D53 A4 33 ?6A 63? 5@@ 666 >74 4 A 4 D D5? AD? A4@ ?4 7?D 4 3>4 Total D@35 6D 67> ?D35 67? 5>> 3> ?74? ?5A6 D@6 563 @4> ?>>6 ?AD@ ?637 D>A3 67 ?46 ?7 65 3D4 D66@ D?67 D7 D744 57 5>@>
State%AUT% Andhra Pradesh Arunachal Pradesh Assam Bihar 2hhatis&arh Delhi Goa Gujarat Garyana Gimachal Pradesh Mammu O Eashmir Mharkhand Earnataka Eerala Madhya Pradesh Maharashtra Mani ur Me&halaya Mi
ram Na&aland 1rissa Punja$ Rajasthan "ikkim #amil Nadu #ri ura Bttar Pradesh43
Bttaranchal Cest Ben&al UT% Andaman O Nico$ar 2handi&arh Dadra O Na&ar Gaveli Daman O Diu Lakshadwee Pondicherry In'ia
?33 >45 @ DD 7 > 4 6> 1:= :
>@ 53> 4 ?? 5 5 4 5@ ?@ #
73 643 4 ?4 ? 5 4 ?3 ? @?
5@D ?744 @ 65 ?? ?A 4 ?45 @/1#/
?66 @4? A ?3 7 @ 4 55 1 ?/1
5A DD5 4 6 4 D 4 ?4 @4#!
>A 57@ 4 ?? 5 D 4 55 :#!#
74 53> 4 ?4 ? 5 4 ?A :?!!
566 ?A3> A 65 ?? ?5 4 >? @ 1/!
A$$r. - I12LLA1D - Indian 1il 2or oration LimitedLAssam 1il Division. IBP - IBP 2o. Limited. GP2L - Gindustan Petroleum 2or oration Limited. BP2L - Bharat Petroleum 2or oration Limited "ource- .Ministry o% Petroleum O Natural Gas) Govt. o% India. ;downloaded %rom www.indiastat.com=
Ta*le F@: Sele,te' State.(i%e Nu$*er o& Retail Outlet% Set up *y Pri6ate Oil Co$panie% -Relian,e" E%%ar an' Nu$ali2ar)0 in In'ia A% on @1>1 > !!/ State%AUT% MA% Relian,e In'u%trie% Lt'> / A> D7 3 / / 55 / ?> 5A D D4 / ?4 D ? D D4 @ / 54 / / / MA% E%%ar Oil Lt'> / @3 ?@ ?@ / / @@ / ?? @ ? 7 / / / / / ?A ?6 / ?4 / / / MA% Nu$ali2ar) Re&inery Lt'> ? / / / 6 / / / / / / / / / / / / / / / / / / / D? / ?4 / ?5 / / / / D / / / D ? ? / / 3 ? @ D A ? No o& R>O% @1>!:> !!:
Assam Gujarat Rajasthan Madhya Pradesh Me&halaya 2hhatis&arh Maharashtra Goa Earnataka Andhra Pradesh Eerala #amil Nadu Pondicherry Cest Ben&al 1rissa Bihar Mharkhand Punja$ Garyana Delhi Bttar Pradesh Na&aland Mani ur Arunachal Pradesh
44
Bttaranchal In'ia
/ :/
/ @!
/ 4
? :/
"ource-"ource - Lok "a$ha Bnstarred Nuestion No. D5@>) dated ?7.45.D44A O Rajya "a$ha Bnstarred Nuestion No. A4@@) dated ?4.4A.D44A. O Lok "a$ha Bnstarred Nuestion No. 745) dated [email protected]. ;downloaded %rom www.indiastat.com =
9>
Pri,e%
Ta*le 91: MaBor City.(i%e Retail Sellin2 Pri,e% o& Petrol an' Die%el in In'ia ;Rs.LLitre= -A% on !1>!/> !!:0 MaBor City Petrol Die%el Nort) New Delhi 6D.3A 54.DA 2handi&arh 66.4> 54.@5 Dehradun 66.A3 5D.7 Mai ur [email protected]> 55.47 Mammu 66.73 54.>> Lucknow [email protected]? 55.@A "himla 6A.@3 5?.53 "rina&ar 6@.?? 5?.>D Ea%t Eolkata 6@.> 5D.33 A&artala 6D.37 54.6 Ai:wal 6D.@> 54.D7 Bhu$aneshwar 66.AA 55.A Gan&tok 6A.@7 55.D6 Guwahati 6A.AD 5?.5> Im hal 6D.?@ 54.?7 Itana&ar 6D.>5 54.65 Eohima 65.5? 54.63 Patna [email protected] 5D.>7 Port Blair 57.36 D>.DD Ranchi 65.>@ 55.4? "hillon& 65.?> 54.A7 <e%t Mum$ai 63.6? 56.>@ Ahmeda$ad 67.76 5A.D? Bho al 6@.>> 56.3 Panjim 66.5@ 55.?> Rai ur 66.3D 56.?5 Sout)
45
2henni Ban&alore Gydera$ad Pondicherry #rivandum Ma+i$u$ Pri,e 3an2alore Ma+i$u$ Pri,e Port 3lair Di&&eren,e
67.63 A4.@D 63.3D 6?.AD [email protected] 4!>= @:>?/ 1 >:?
55.5? 5A.DA 55.3? 5?.67 55.75 @4> 4 #> =>!@
"ource - Rajya "a$ha Bnstarred Nuestion No. 65>D) dated ?A.4A.D447. ,downloaded from www.indiastat.com -
Ta*le 9 : Con%u$er an' Pro'u,er Pri,e% o& Natural 9a% in In'ia
;Rs.L P 444 2u$ic Metre=
Con%u$er Pri,e% E&&e,ti6e Date o&&.%)ore -Lan'&all Point0 an' On.%)ore D3A4 D3A4 D3A4 D3A4 D3A4 D3A4 D3A4 D3A4 D3A4 D3A4 D3A4 D3A4 D3A4 D3A4 D3A4 5D44 5D44 For Nort) Ea%tern State% Tran%portatio n C)ar2e% alon2 HDJ Pipeline
Pro'u,er Pri,e% OIL ON9C -Nort) -Nort) Ea%ter ON9C Ea%ter n n State%0 State0G G D??@ D476 D??3 D?5D DD4@ D?7@ DD64 DDD6 DDD6 D?57 D?7@ D?>6 D?D4 D?65 D536 5?@3 5?57 ?744 ?744 ?744 ?744 ?744 ?744 ?744 ?744 ?744 ?744 ?744 ?744 ?744 ?744 ?744 ?>D4 ?>D4 ?>44 ?>44 ?>44 ?>44 ?>44 ?>44 ?>44 ?>44 ?>44 ?>44 ?>44 ?>44 ?>44 ?>44 ?>44 5?@3 5?57
Calori&i, Dalue -7>CalASCM0
4?.46.D44 D 4?.47.D44 D 4?.?4.D44 D 4?.4?.D44 5 4?.46.D44 5 4?.47.D44 5 4?.?4.D44 5 4?.4?.D44 6 4?.45.D44 6 4?.46.D44 6 4?.47.D44 6 4?.4>.D44 6 4?.?4.D44 6 4?.4?.D44 A 4?.46.D44 A 4?.47.D44 A 4?.?4.D44
?744 ?744 ?744 ?744 ?744 ?744 ?744 ?744 ?744 ?744 ?744 ?744 ?744 ?744 ?744 ?>D4 ?>D4
??A4 ??A4 ??A4 ??A4 ??A4 ??A4 ??A4 ??A4 ??A4 ??A4 ??A4 ??A4 ??A4 ??A4 ??A4 ??A4 ??A4
?4444 ?4444 ?4444 ?4444 ?4444 ?4444 ?4444 ?4444 ?4444 ?4444 ?4444 ?4444 ?4444 ?4444 ?4444 ?4444 ?4444
46
A 4?.4?.D44 @ 4?.46.D44 @ 4?.46.D44 7 4?.46.D44 3
5D44 5D44 5D44 5D44
?>D4 ?>D4 ?>D4 ?>D4
??A4 ??A4 ??A4 ??A4
5??3 5D44 5D44 5D44
?>D4 ?>D4 ?>D4 ?>D4
5??3 5D44 5D44 5D44
?4444 ?4444 ?4444 ?4444
A$$r. - 1NG2 - 1il O Natural Gas 2ommission. 1IL - 1il India Ltd. Note - T - w.e.%. 4?.?4.?>>7 &as rice alon& G0M Pi eline includes Rs. ??A4 er ?444 "2M towards trans ortation char&es. #he trans ortation char&es alon& G0M i eline are $ein& increased $y ?Q %or every ?4Q increase in 2PI and are linked to the calori%ic value o% Rs. 3A44 E.2alL"2M. ? - #he 2onsumer rices are e'clusive o% Royalty) "ales #a' and other "tatutory Levies. Producer Prices are e'clusive o% Royalty. D - #he discount o% Rs. 644 er ?444 "2M was A lica$le in case o% &as rice %or North/8astern "tates u to 54.4>.?>>7 and at Rs. 544 er ?444 "2M w.e.%. 4?.?4.?>>7 %or 1NG2 had withdrawn this discount %rom #ri ura w.e.%. 4?.46.D44D and %rom Assam w.e.% 1cto$er D44D. 5 - 1ther #han G0M i eline) GAILLtrans orters are ermitted to ne&otiate trans ortation char&es with the consumers. 6 - C.e.% ?.7.D44A) the rice o% natural &as has $een revised %or Power) Fertili:er "ector) small consumers havin& allication u to 4.4A MM"2MD and consumers drawin& &as under su reme court orders vide ricin& order dated [email protected]. #he Revised rice is Rs. 5D44LM2M. A - C.e.% 4?.?4.?>>7 &as rice alon& G0M i eline includes Rs. ??A4 er ?444 "2M towards trans ortation char&es. #he trans ortation char&es alon& G0M i eline are $ein& increased $y ?Q %or every ?4Q increase in 2PI and are linked to the calori%ic value o% 3A44 E.2alL"2M. @ - Actual roducer rice o% 1il O 1NG2 %or sales in north/eastern re&ion is Rs. ?744LM2M at ?4444 EcalL"2M. Gowever) as er &as ricin& order dt. ?3th "e tem$er ?>>7)%or concessional rice in the north/east )1il is to $e com ensated %rom the &as ool account at a roducer rice o% Rs. ?>44LM2M. #he roducer rice o% 1il increases $y ?Q %or every ?4Q increase in 2PI. "ource- .Ministry o% Petroleum O Natural Gas) Govt. o% India. ;downloaded %rom www.indiastat.com=
Ta*le 9@: Pri,e 3uil'.up o& Sele,te' Petroleu$ Pro'u,t% in Del)i" 7ol8ata" Mu$*ai an' C)ennai -A% on !1>!/> !!:0 Del)i [email protected] D 4 ?A.3@ ?4D.@3 D? 4.D7 ?@.>? 1?@/> = ?5?4.4@ @1//>@ /?@.>? 66
Ite$ Hi2) Spee' Die%el -R%>A7l0 "tora&e Point Price "tate "urchar&e BM2 "urchar&e "idin& 2har&e RlyL1ceanLFrei&ht RP1 "urchar&e RP1 2har&e ;8'cisa$le= Assessa$le 0alue adj. A%%e%%a*le Dalue Basic 8'cise Duty Su* Total Assessa$le 0alue adj. FD< 2har&es
7ol8ata [email protected] 544 4 44 4 D?.>5 D? 4.D7 4 !1?>:/ ?5D?.?D @@@#>?= 4 66
Mu$*ai [email protected] ?57 44 D>> 4 4 D? 4.D7 4 44 1@ >?1 ?5D7.>7 @/=!>:? 4 66
C)ennai [email protected] ?D4 4 44 4 4 D? 4.D7 4 1?1=>?1 ?54>.4? @1 4>? 4 66
47
Additional 8'cise Duty Basic 8'cise Duty Amount 8dn 2ess Su* Total Delivery 2har&es Beyond FD< RP1 Price "ales #a' Dealer 2ommission Sellin2 Pri,e R%>A7I Sellin2 Pri,e R%>ALtr Superior 7ero%ene Oil-R%>A7I0 8'/stora&e Point Price "tate "urchar&e BM2 "urchar&e "idin& 2har&es RlyL1ceanLFrei&ht A%%e%%a*le Dalue 8ntry #a' AmountL#N re$ate "ates #a' Su* Total . R%A7I Cholesales Mar&in #rans ort 2har&es <)ole%ale% Pri,eA7I Retailers Mar&in Leaka&e and other 8' enses Retail #rans ortation Roundin& o%% Sellin2 Pri,e R%>A7I Sellin2 Pri,e R%>ALtr ATF -Do$e%ti, Airline%0 Basic Price Inland Di%%erential "tate "urchar&e Frei&ht "idin& 2har&es Marketin& 2ost M"L 2ost A%%e%%a*le Dalue 8'cise Duty 8ducation 2ess V5Q on 8D #oll #a' Po%te' air&iel' pri,e per 7L -E+,lu%i6e o& Sale% Ta+ an' ot)er Le6ie%0 Furna,e Oil -R%>A7I0 8'/stora&e Point Price "tate "urchar&e Notional Railway Frei&ht A%%e%%a*le Dalue 8'cise duty X edu cess Total in,lu%i6e o& e+,i%e 'uty J e'u ,e%% "ales #a'
D444 ?DA4 [email protected] =44?> 1 4 [email protected]? [email protected]> AD> @! /#>## 1> : 7>@7 4 4 @.?D AD.A? ?! 4>=@ 4 5D?.45 ?@/=>=4 D46 D36.DA ??@/># ?34 4 4 7A.? #!#! #>!# D6374 A74 D 5D5.43 >.3A ?3A4 D4@ :?@!>#@ [email protected] @@.7> 4 @!1 />
D444 ?DA4 ?57.?5 =::1 ?5.66 D@7>6.66 6AAA.4A AD> @ ?:?>/# @ >?? 7>@7 @D 4 4 ?>.57 ?!/?>@: 4 5D?.>5 ?@:!>@1 D46 D45.5 ?:::>=1 [email protected] D4A.?3 ?54 4 # ?#> / #> # DA6?4 4 ?AD4 A>4.A> 4 5?44 D4@ @!? =>4# D6@@.?5 75.>3 4 @@@==>: ?74A4 ?4A [email protected]@ 1://1>@= D376.56 !@14>: 3?D.@5
D444 ?DA4 ?57.56 =?# >1 4 D@3>D.?D 7AD>.7> AD> @/#4!>#1 @/>#= 7>@7 6 @D 4 4 ?!@@ 4 5D?.5D ?@4/>@ D46 D65 ??!1>@ D43 53.D@ 4 D.6D #!4! #>!4 D6>74 4 A>4 ?44 4 ?7A4 D4@ :=1= DD4>.D3 @@.D3 4 #?#1>4= ?@@44 ?>?.@ 4 1=:#1>= [email protected]@ 1#44?>?= D666.3@
D444 ?DA4 [email protected] =44=>4# 4 D@[email protected]> @DDD.D? AD> @@@!:>? @@>@1 7>@7 ??5 4 4 4 ?!?! /A7@ 544.?@ :?!/>1= ?65 AD.DA :###>/1 5@4 54 4 4 ?@?#>/1 ?>@# DAD64 4 ?45D ?63.57 4 ?@A4 D4@ ? :=>@: DD@D.?? @7.3@ 4 @!=!=>@4 ?@>44 57A 4 1: :4 D36@.>D !1 1># DA?A.D6
4.
Total Li2)t Die%el Oil -R%A7I0 8'/stora&e Point Price "tale "urchar&e Notional Railway Frei&ht A%%e%%a*le Dalue 8'cise duty X edu cess Additional Levy alon&with cess Total In,lu%i6e o& E+,i%e 'uty J e'u ,e%% "ales #a' Total
11 ?>@ D?4>4 DA DA6.@5 1@=#>=@ 5AD?.7D DA7A :/==>@4 5655.D> @!?##>=/ D?4>4 574 564 1?!! 5A>D.@6 DA7A :#=:>=/ 67A6.A @ : >1/
!!@>:1 D?4>4 ?D?.D3 4 1 11> ? 56>A.@D DA7A : ?1># 56?4.D6 @!=# >1/
=@:>1= D?4>4 6AA 4 14/4 5AA4.@D DA7A :=:!>= @>?7.@A @/4??> :
Note - "ellin& rice %or "u erior Eerosene 1il is %or Pu$lic Distri$ution "ystem ;PD"=. "ource- .Ministry o% Petroleum O Natural Gas) Govt. o% India. ;downloaded %rom www.indiastat.com=
Ta*le 9/: <)ole%ale Pri,e In'i,e% o& Cru'e Oil an' Petroleu$ Pro'u,t% in In'ia
;Base- ?>>5/>6Y?44=
Pro'u,t% Li2)t Di%tillate% LPG Petrol Na htha Mi''le Di%tillate% Eerosene Aviation #ur$ine Fuel Gi&h " eed Diesel 1il Li&ht Diesel 1il Hea6y En'% Furnace 1il Lu$ricatin& 1il Bitumen All Co$$o'itie%
- !!!. !!1 an' !! . !!@ to !!:. !!?0 <ei2)t -I0 !!!.!1 !! .!@ !!@.!/ !!/.!4 ?.3575? 4.333?A 4.6?33A 4.@3>D3 4.?@>A5 D.4D456 4.?@4?A 4.6>55A 4.?@5@7 4.?6> 1!! D63.D ?A6.D D>6.7 D74.D ?66.D DD3.3 D5D.D D45.A ?6D.@ D45.A 14=>: D36 [email protected] [email protected] 5A>.7 ?5A.7 D75.A D55 ?7>.7 ?A6.7 D47.@ 1==>? D3A.A ?73.7 5?A.@ 5A>.D ?6>.5 544.6 D36.@ DD7.D [email protected] DA?.D 1?!>@ 5?@ D45.A 65D.? 5A7.> ?76.? [email protected] 5@@.5 [email protected] ?3>.5 [email protected] 1?#>4
!!4.!= 556.3 D5?.? A54.6 5A7.@ DD3.7 654.6 66A.5 567.6 ?>6.A D33 1#:>
!!=.!: 556.3 DA6.3 @?A.> 5A7.@ D@D.@ [email protected] 6>?.? 5>5.D D63.3 6D?.7 1!>/
!!:.!?G 556.3 D6D.5 @>6.6 5A7.@ D7D.7 6A?.@ 6>?.D 653.6 D7A 67> 14>:
Note - T - Provisional. "ource- .Ministry o% Petroleum O Natural Gas) Govt. o% India. ;downloaded %rom www.indiastat.com=
Ta*le 94: Duty Stru,ture o& Central 9o6ern$ent on Petroleu$ Pro'u,t% in In'ia -A% on No6e$*er" !!:0 3a%i, Central Cu%to$% E+,i%e Duty Duty AQ 7.A4Q 7.A4Q ?4Q AQ Nil Nil @QXRs. ALlitre @QXRs. ?.DALlitre [email protected] ?@Q Nil Ce%%ASpe,ial A''itional E+,i%e Duty Rs. DA44 er tonne Rs.D er litreX Rs. @ er litre Rs. DLlitre / / /
Ite$%
2rude Petrol ;M"= Diesel ;G"D= LD1 Na htha LPG domestic
4:
LPG "E1 PD" "E1 LNG 1ther Products
AQ Nil ?4Q AQ ?4Q
3Q Nil ?@Q Nil ?@Q
/ / / / /
"ource - Rajya "a$ha "tarred Nuestion No. 77) dated on D4.??.D447. ;downloaded %rom www.indiastat.com =
Ta*le 9=: Reali%ation o& E+,i%e an' Cu%to$ Dutie% &ro$ Cru'e Oil an' Petroleu$ Pro'u,t% in In'ia
;Rs. in 2rore=
A,tual% Pro'u,t E+,i%e Dutie% Motor " irit Eerosene 1il Re%ined Diesel 1il Diesel 1il ;N8"= Furnace 1il Pol. Products ;N1"= Petroleum Gases 2ess on crude oil Total Cu%to$ Dutie% 2rude Petroleum Petroleum Products Total 9ran' Total 1##!.#1 1###.!! !!!.!1 !!.! !! .!@ !!@.!/ !!/.!4 !!4.!= !!=.!: !!:.!?
?D4D DAA @>5 5A 6> 6D? @@ D7A7 4/:? 5?6A >D4 /!=4 #4/@
A4?3 D6> @7@> ?D55 @?@ D7?A 5A> 5D65 ! ! @DA7 @D45 1 /=! @ ==
A6D@ 7DA 3?67 ??46 >3? 5573 ?D>@ 5@4@ /==@ 77>6 56AA 11 /# @4#1
3A4? @>> ??4D3 ??7> 77> D373 ?A6D D75? #@@: 63?3 ?>6> =:=: @=1!/
??A@5 ?5>4 ?4A74 ?453 >7? 5635 D66A 6A4? @4#=1 @3D4 D56@ #1== /41 :
?DA7A ?744 ?5674 >>D 3DD D>4@ DAAD A?56 /!141 76>? 54>? 1!4? 4!
@?57>D ?D75 ?66AA ?D6@ >>@ 57?? D6D6 AD63 /@1/4 >7@? 563> 1@ 4! 4=@#4
?7AA6 D?D D?775 A4A ?7A@ 6@D5 5?> A447 41:/# 7?A3 6D5@ 11@#/ =@1/@
?3545 D5@ D6@7D 53> ?377 6>?> 6A6 7456 4:??/ 7A35 @6D@ 1/!!# :1?#@
D4?4D D6? D5363 54@ ?>3A @5?5 A74 @3@@ =! @1 >?4? >46? 1?1/ :?@
Note - Fi&ures Rounded to Nearest 2rore. T - Provisional. "ource - Ministry o% Petroleum O Natural Gas) Govt. o% India. ;downloaded %rom www.indiastat.com=
Ta*le 9:: C)an2e Ma'e in Central E+,i%e an' Cu%to$ Duty Stru,ture o& Cru'e an' Petroleu$ Pro'u,t% in In'ia Ite$ E+,i%e Duty As on 4?.45.D44D As on [email protected] As on 4?.45.D445 As on [email protected]@.D446 As on Cru'e Petrol 5DQX Rs. 7 Per Litre 54QX Rs. 7 er litre 54QX Rs. 7.A4 er litre D@QX Rs. 7.A4 er litre D5QX Die%el ?@QX Rs. ? er litre ?6QX Rs. ? er litre ?6QX Rs. ?.A4 er litre ??QX Rs. ?.A4 er litre 3QX S7O -PDS0 Do$e%ti, LP9
T T T T T
?@Q ?@Q ?@Q ?@Q ?DQ
?@Q ?@Q ?@Q 3Q 3Q
5$
?>.43.D446 As on 4?.45.D44A As on 4?.45.D44@ Cu%to$% Duty As on 4?.45.D44D As on 4?.45.D445 As on 4>.47.D446 As on ?>.43.D446 As on 4?.45.D44A As on [email protected]@ As on 4?.45.D447 T J ?4 ?4 ?4 ?4 A A A
Rs. 7.A4 er litre 3QX Rs. ?5.44 er litre 3QX Rs. ?5.44 er litre D4 D4 D4 ?A ?4 7.A 7.A
Rs. ?.A4 er litre ?@QX Rs. 5.DA er litre ?@QX Rs. 5.DA er litre D4 D4 D4 ?A ?4 7.A 7.A
Nil Nil Nil ?4 ?4 A Nil Nil Nil
Nil Nil ?4 ?4 ?4 A Nil Nil Nil
Note - Cith e%%ect %rom >.7.46) an additional levy o% education cess V DQ has $een im osed. Cith e%%ect %rom ?.5.D445 National 2alamity 2ontin&ent Duty V Rs. A4LM# levied on im orted 2rude and indi&enous crude ;8'ce t P"2LN8LP 2rude 1il=. T - Rs. ?344 mt As 2ess. J - Rs. DA44 mt As 2ess. "ource - Rajya "a$ha Bnstarred Nuestion No. ?6A) dated on DAth Muly) D44@. O Rajya "a$ha "tarred Nuestion No. 77) dated on D4.??.D447. ;downloaded %rom www.indiastat.com =
H>
Su*%i'ie%
Ta*le H1: Su*%i'ie% on MaBor Petroleu$ Pro'u,t% in In'ia ;Rs. in 2rore= !!=. !!:. !: !? >@> 4.3D 4 ?A7D DD.A3 4 4 4 4/1 A??J 4.3D 4 354J DD.@ 4 4 4 :!!
Pro'u,t Eerosene/Domestic use ;PD"= ;RsLLitre= G"D LPG/Packed/ Domestic ;RsL2yl= Na hthaLF1LL"G"/ Fertiliser use Bitumen/Packed Para%%in Ca' Total
!!1.! A5?4 6.4A 4 A354 ??A.@5 4 4 4 111/!
!! . !@ 54?3 D.6A 4 5@>? @7.7A 4 4 4 =:!#
!!@. !/ D4?3 ?.@5 4 D735 6A.?3 4 4 4 /?!1
!!/. !4 >7> 4.3D 4 ?6@3 DD.A3 4 4 4 //:
!!4.!= >7@ 4.3D 4 ?AD4 DD.A3 4 4 4 /#=
A$$r. - N.A. - Not Availa$le. J - A r/"e P47 ;8stimated=. "ource - Ministry o% Petroleum O Natural Gas) Govt. o% India. ;downloaded %rom www.indiastat.com=
Ta*le H : Se,tor.(i%e Su*%i'ie% *y Central 9o6ern$ent in In'ia Se,tor 1##1.# 1##/.#4 !!1. !! .@ !!@./ !!/.4 !!4.= ;Rs. in 2rore= !!=.: !!:.!?
51
I> Total Central 9o6t> Su*%i'ie% Food 1ther su$sidies II> Pol Pro'u,t%L III> Total Su*%i'y -IJII0 ID> Pol Su*%i'y a% I o& Total Su*%i'y
1
4@ D3A4 >645 /1:4
11?4/ A?44 @7A6 =4=! 1?/1/
@1 1! ?76>> ?57?? 111/! / @4!
/@4@@ D6?7@ ?>5A7 4 4 ...
//@ @ DA?3? ?>?6D =@41 ...
/4#4: DA7>3 D4?A> #4: ...
/:4! ! D5477 D6665 =?@ ...
4:1 4 D64?6 55??? =## ...
=#:/ 5?A6@ 53?>@ ?? ...
1=/ ?
4>/1
@4>=@
=>@
1
1/>@@
=>/@
4>=4
/>:
/>1@
A$$r. - R8 - Revised 8stimate. Note - V - #hese do not %orm art o% Govt. Bud&et u to D44?/4D. "ource - Ministry o% Petroleum O Natural Gas) Govt. o% India. ;downloaded %rom www.indiastat.com=
I>
Finan,ial%
Ta*le I 1: Pro&it A&ter Ta+ -PAT0 o& Oil PSU% in In'ia
;Rs. in 2rore=
Co$pany Up%trea$ Oil Co%> 1NG2 I12L BP2L GP2L GAIL 1IL Su* Total Inte2rate' Oil Co%> I12 GP2 BP2 IBP Su* Total Stan' Alone Re&inerie% ERL MRPL NRL 2P2L BRPL Su* Total Total.PSU
!!1.!
!! .!@
!!@.!/
!!/.!4
!!4.!=
!!=.!:
@?>7.33 / / / ??3A.35 ADA.DD :#!?>#@ D336.@@ 737.>3 36>.35 ?>A.7> /:1?> = @3.77 /6>D.63 ?DD.>3 @5.7? /?>3.@? ./@4>=@ 1 1#1>4=
?4AD>.5 / / / ?@5> >[email protected] 1@!?4>!@ @??6.3> ?A57.5@ ?DA4.45 37.7A ?##!>!@ 6A@ /6??.3? ?76.@5 54D.3> ?73.6A :!!>1= ::4>
3@@6.6 / / / ?3@>.56 >6>.7 11/?@>// 7446.3D ?>45.>6 ?@>6.A7 D?6.@@ 1!?1:>## AAA.4> 6A>.6D D?6.>A 644.4A 545.76 1#@@> 4 / @/>=?
?D>35.4A 63>? >@A.3 ?D77.55 ?>A6 ?4@?.@3 @1@ >?= 63>?.53 ?D77.55 >@A.3 A3.37 :1#@>@? 36D.?D 37>.7@ 64>.?A A>@.>7 673.5 @ !=>@ =@#?>@/
?6654.73 6>?A D>?.@A 64A.@5 D5?4 ?@3>.>5 /!/ >## 33>.@@T /[email protected] /?@A3.@4T /AD4.35T . ?#:>44G DD4.@4T 64?.?4T D75.@AT 6A?.74T ?66.??T 1/#1>1=G 1@1#@>?/G
?A@6D.>D 76>> ?34A.63 ?A7?.?7 D537 ?@5>.>> @!4/4>4= / / / / . / / / / / . .
"ource - Ministry o% Petroleum O Natural Gas) Govt. o% India. O Lok "a$ha "tarred Nuestion No. 555) dated [email protected]>.D447. ;downloaded %rom www.indiastat.com =
Ta*le I : Finan,ial per&or$an,e o& petroleu$ re&inin2 ,o$panie% in In'ia
52
;in Rs 2rore= Co$pany Na$e Mar.!= Bharat Petroleum 2or n. Ltd. Bon&ai&aon Re%inery O Petrochemical s Ltd. 2hennai Petroleum 2or n. Ltd. 8ssar 1il Ltd. G P 2 L/Mittal 8ner&y Ltd. Gindustan Petroleum 2or n. Ltd. Indian 1il 2or n. Ltd. Eochi Re%ineries Ltd. ZMer&ed[ Man&alore Re%inery O Petrochemical s Ltd. Na&arjuna 1il 2or n. Ltd. Numali&arh Re%inery Ltd. Petro 8ner&y Products 2o. India Ltd. Reliance Industries Ltd. Reliance Petroleum Ltd. Sale% Mar.!: Co$pen%ation to e$ployee% Mar.!= Mar.!: P3DITA Mar.!= Mar.!: Mar.!= PAT Mar.!: Net(ort) Mar.!= Mar.!:
3A?6>.@D
?476AD.D7
33?.@?
?445.74
?667.34
6?6D.?3
D>?.@?
?34A.53
>?5>.6D
?4D75.A5
@6A6.?7 [email protected]? @6>.D7 4.44 [email protected]> ?>>654.>?
@A@A.?6 D>6DA.A6 67A.77 4.44 >7@67.?5 DA4534.?7
??D.@5 >@.3D ?3.5D 4.44 @>A.@D ?3@4.?>
?6D.3> ?A4.@5 ?D.5D 4.44 75?.D5 [email protected]@
5?6.>3 ??56.5A /35.35 4.44 ?5>6.4> >33@.>6
5D3.>@ [email protected] /6A.55 4.44 5ADD.3> ?6@?7.@>
?76.7@ 634.>@ />5.@3 4.44 64A.AA 6>?6.5@
?36.>3 [email protected] /@7.6> 4.44 ?A74.>3 76>3.A@
37?.@6 DD3?.A5 DAD4.75 544.44 375A.@D D>54D.@7
>76.34 [email protected] D34A.76 553.>6 >A>3.@A 563A7.D>
D3D6D.3@ 4.44 A34>.@6
5DD43.?5 4.44 7>?7.6A
67.>@ 4.44 53.65
AA.D4 4.44 63.A4
??>4.>? 4.44 @6>.34
?@D>.DD 4.44 7@?.D3
57?.@D 4.44 663.>5
ADA.AD 4.44 [email protected]
D5>A.56 A>D.4? ?@>?.55
[email protected] @36.A? D466.>7
3>?D6.6@ 4.44
??35A5.7? 4.44
>73.6A 4.44
D4>6.4A 4.44
?6>>4.4? 4.44
D4A5D.?5 4.44
>4@>.56 4.44
??>65.>? 4.44
6>346.D@ 5?A4.44
@5>@7.?5 ?5663.3D
"ource- Prowess 2MI8
TTT
53
doc_794118198.doc