GOVERNMENT OF INDIA

MINISTRY OF PETROLEUM AND NATURAL GAS

LOK SABHA

UNSTARRED QUESTION NO: 757

ANSWERED ON:01.03.2013

PROCUREMENT OF DIESEL

MURLI MANOHAR JOSHI

(a) :the quantum of diesel procured by various bulk consumers from Oil Marketing Companies (OMCs) after the implementation of dual pricing policy on diesel, OMC-wise;

(b) : whether bulk consumers of diesel are buying diesel from private companies to avoid paying the increased market price, causing loss to the public sector oil companies;

(c) : if so, the details thereof along with the names of the Public Sector Oil Companies whose bulk diesel sale has fallen after deregulation of diesel prices, OMC-wise;

(d): whether bulk buyers of diesel have raised service rates after the increase in the cost of diesel ; and

(e) : if so, the details thereof and the corrective measures taken by the Government in this regard?

Will the Minister of PETROLEUM AND NATURAL GASbe pleased to state:-

MINISTER OF STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS

(SMT. PANABAAKA LAKSHMI)

 (a): After the implementation of dual pricing policy of diesel, OMC-wise detail of quantum of HSD sales to bulk consumers for the period from 18.01.2013 to 25.02.2013 is given below:

(Fig. in TMT) Name of OMC Quantum of sales of HSD (Bulk Consumer) during the period from 18.01.2013 to 25.02.2013

IOCL 621.8

BPCL 102.2

HPCL 71.6

 (b) & (c) : After the decision to supply HSD to bulk consumers at market price, HPCL, BPCL and IOCL have reported a negative growth of diesel sale to bulk consumers.

(d) & (e):The prices of commodities/services for which the Diesel is procured by bulk consumers is essentially dependent upon the market dynamics of that commodity and Diesel is only one of the various input costs being incurred by ‘bulk consumers’. The Ministry of Petroleum and Natural Gas has no specific information on price increase, if any, made by these bulk consumers of Diesel.