Petroleum & Natural Gas Minister Dharmendra Pradhan informed the Lok Sabha in a written reply that for the financial year 2016-17, it has been decided that entire burden on sale of PDS Kerosene and Subsidized Domestic LPG will be borne by the Government.
The total subsidy/under recovery on petroleum products since 2013-14 is given below:
The burden sharing of the under-recoveries by the upstream companies since 2013-14 is given below:
Under-recoveries borne by Upstream Companies
The details of Net Profit After Tax (PAT) reported by the PSU OMCs since 2013-14 are given below:
Refining of crude oil is a process industry, where crude oil constitutes around 90% of the total cost. Crude oil is processed through several processing units. Each of these units produces intermediate products streams, which require extensive reprocessing and blending. This results in difficulty in apportioning the total cost of individual refined products with reasonable accuracy. Therefore, individual product-wise costs are not identified separately.
The prices of Petrol and Diesel have been made market determined by the Government effective 26thJune, 2010 and 19th October, 2014 respectively. Since then, the Public Sector Oil Marketing Companies (OMCs) take appropriate decision on pricing of these products in line with their international prices and other market conditions. The Government continues to modulate the effective price to consumer for Subsidized Domestic LPG and Retail Selling Price (RSP) of PDS Kerosene. Further, price of CNG/PNG is fixed by the concerned City Gas Distribution (CGD) entities as per market dynamics. Adam Joseph Duhe Womens JerseyShare This