GOVERNMENT OF INDIA

MINISTRY OF PETROLEUM AND NATURAL GAS

LOK SABHA

UNSTARRED QUESTION NO: 2044

ANSWERED ON:11.08.2011

PROFITS RECORDED BY ONGC, OIL AND GAIL

HARSH VARDHAN

(a):whether Oil and Natural Gas Corporation (ONGC), Oil India Limited (OIL), Gas Authority of India Ltd. (GAIL) and private sector gas companies had recorded profits during the last three years;

(b):if so, the details thereof;

(c):the contribution of ONGC, OIL and GAIL to central exchequer through duties, taxes, royalty and dividends during the said period;

(d):whether the Government has formulated any principle to determine which agency or agencies should bear the burden of an increase in international prices and to what extent; and

(e):if so, the details thereof?

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

ANSWER

MINISTER OF STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS

(SHRI R.P.N. SINGH)

 (a) & (b):Profits recorded by Oil and Natural Gas Corporation Limited (ONGC), Oil India Limited (OIL) and Gas Authority of India Limited (GAIL) during the last 3 years are as under: 

(Rs. In Crore/and in round figure)

Oil Company 2008-09 2009-10 2010-11

ONGC 16,126 16,768 18,924

OIL 2,162 2,611 2,888

GAIL 2804 3140 3561

 Profits of Private Sector Gas Companies are neither reported to nor monitored by this Ministry.

(c):The contributions of ONGC, OIL and GAIL to central exchequer through duties, taxes, royalty and dividends during the last three years are as under:- 

 (d) & (e):To protect the consumer and the economy from the increasing price volatility and uncertainty of international oil prices since 2004-05, Government has been modulating the retail selling prices of the sensitive petroleum products, namely, Diesel, PDS Kerosene and Domestic LPG. The Government has evolved a Burden Sharing Mechanism to ensure that the burden of increase in international prices is shared by all the stakeholders; in the following manner:

#Government through issue of Oil Bonds/ Cash assistance;

#Domestic upstream oil companies through price discounts to Oil Marketing Companies (OMCs);

#OMCs to bear a portion of the under recoveries; and

#Consumer to bear minimal price increases