GOVERNMENT OF INDIA

MINISTRY OF PETROLEUM AND NATURAL GAS

LOK SABHA

UNSTARRED QUESTION NO: 575

ANSWERED ON:25.02.2010

REPORTS OF THREE PANELS REGARDING OIL INDUSTRY

(a)whether the Government has received reports of the three panels in regard to the oil industry from Feb.2006 to Feb 2010;

(b)if so, the details thereof and the issues on which the said three panels have been asked to make suggestions;

(c)the steps taken by the Government on each of the reports;

(d)whether the Government has implemented the suggestions of three panels; and

(e)if so. the details thereof?

ANSWER

 (a) & (b):During the period from February 2006 to February 2010, Government has received the reports of the following panels:-

(i)Dr. Rangarajan Committee on Pricing and Taxation of Petroleum Products, on 17-02-2006;

(ii)High Power Committee constituted under the chairmanship of Shri B.K. Chaturvedi on the Financial Position of Oil Companies, on 31-07-2008; and

(iii)Expert Group, constituted under the Chairmanship of Dr. Kirit Parikh, on a Viable and Sustainable System of Pricing of Petroleum Products, on 3-02-2010.

(c) to (e):The Government has taken the following action in acceptance of the recommendations of Dr. Rangarajan Committee:

(i)Pricing of Petrol and Diesel to be determined on Trade Parity basis which is the weighted average of Import Parity and Export Parity prices in the ratio of 80:20.

(ii)Reduction of custom duty on Petrol and Diesel from 10% to 7.5% in June 2006.

(iii)In principle decision to restrict the supply of subsidized PDS Kerosene to BPL families. The Government has not taken a decision on the implementation of the recommendations made in the Reports of the High Power Committee on the Financial Position of Oil Companies (Chaiurvedi Committee) and the Expert Group on a Viable and Sustainable System of Pricing of Petroleum Products (Parikh Committee).