ONGC/Indian Oil's Petrol/Diseel Price Riddle...

Ministry of Petroleum & Natural Gas09-August, 2011 17:52 IST

Production Costs of Petro-Products

The Minister for Petroleum & Natural Gas Shri S. Jaipal Reddy informed the Rajya Sabha in a written reply today that the cost of production by Oil and Natural Gas Corporation Limited (ONGC) and Oil India Limited (OIL) in the year 2010-11 is US$ 37.29 per barrel and US$ 27.76 per barrel respectively.   He also informed that the net crude oil price realized by ONGC and OIL during 2010-11 was US$ 38.35 per barrel and US$ 41.41 per barrel respectively.  The elements of sale price of crude oil per barrel during the financial year 2010-11 for ONGC and OIL are as under: Particulars US$ per barrel ONGC OIL Gross Price 89.41 89.53 Less: Discount 35.65 28.67 Net Price after discount 53.76 60.86 Less: Cess (including NCCD*, Education Cess) 8.25 8.06 Less: Royalty 5.45 9.07 Less: VAT &CST 1.71 2.32 Net Realized Price 38.35 41.41 *National Calamity Contingency Duty (NCCD) In reply to another query, the Minister added that refining is a process industry, where crude oil constitutes around 90% of the total cost. Crude oil is processed through several processing units such as Crude Distillation Unit (CDU), Vacuum Distillation Unit (VDU), Fluid Catalytic Cracking Unit (FCCU), Hydro Cracker Unit, Lube Unit etc. Each of these units produce intermediate product streams, which require extensive reprocessing and blending. Petroleum products are processed from blend of various intermediate streams. The blending of intermediate products streams from various units for making finished petroleum products results in difficulty in apportioning the total cost to individual refined products with accuracy. Therefore, individual product-wise costs are not identifiable separately.             Shri Reddy emphasised that, as mentioned above, the actual cost of production is not available separately for petrol and diesel. However, the oil marketing companies pay Refinery Gate price, when they purchase Petrol and Diesel from refineries. Refinery Gate price is based on Trade parity, which is the weighted average price of Import Parity Prices and Export Parity Prices in the ratio of 80:20.             Refinery Gate Price for Delhi as on 1.8.2011 is as under: Product RTP (Rs./ Ltr.) Petrol 35.39* Diesel 37.46            *As per the information received from Indian Oil Corporation Ltd.

India's Oil Production during June-2011

Production of Crude Oil & Natural Gas for the Month of June, 2011

I.        A. CRUDE OIL PRODUCTION  – PERFORMANCE Month / Period Planned Target (MMT) Actual Production (MMT) %age achievement Surplus(+) Shortfall(-) Vis-à-vis target (%age) Surplus(+) Shortfall(-) over last year  (%age) June, 2011* 3.145 3.166 100.7 0.7 7.7 April-June, 2011* 9.404 9.581 101.9 1.9 9.5 April-June, 2010 8.753 MMT: Million MetricTonnes. *: Provisional. B. COMPANY-WISE ACHIEVEMENT Company / State Planned Target (MMT) Actual Production (MMT) %age achievement Surplus(+) Shortfall(-) (%age) ONGC 1.9420 1.9720 101.5 1.5   Gujarat 0.4410 0.4720 107.0   Andhra Pradesh 0.0220 0.0250 113.6   Tamil Nadu 0.0160 0.0210 131.3   Assam 0.0920 0.0980 106.5   Mumbai Region                             (inclMumbai High) 1.3700 1.3560 99.0 OIL 0.3069 0.3158 102.9 2.9   Assam 0.3050 0.3136 102.8   Arunachal Pradesh 0.0019 0.0023 121.5 PRIVATE/JVC 0.8958 0.8778 98.0 -2.0 TOTAL 3.1447 3.1657 100.7 0.7 C. REASONS FOR SHORTFALL Company / State Reasons for shortfall ONGC (Mumbai High Offshore) ·Less than anticipated oil gain from side track and development wells. Production affected due to high GOR/high water cut from Vasai East.  Less line condensate receipt from offshore.  A statement showing Crude Oil Production during June, 2011 and cumulatively for the period April- June, 2011 vis-à-vis 2010-11 planned production is at Annexure-I. II.  A. REFINERY PRODUCTION     (IN TERMS OF CRUDE THROUGHPUT) Month / Period Planned Target (MMT) Actual Production (MMT) %age achievement Surplus(+) Shortfall(-) Vis-à-vis target         (in %age) Surplus(+) Shortfall(-) over last year          (in %age) June, 2011* 13.07 14.14 108.1 8.1 4.7 April- June, 2011* 40.42 42.53 105.2 5.2 5.3 April- June, 2010 40.39 *: Provisional. The crude throughput in IOC ( Barauni, Haldia, Koyali &  Mathura), BPCL (Mumbai), HPCL (Visakh), NRL (Numaligarh), MRPL (Mangalore),  ONGC (Tatipaka) & RIL (Jamnagar) refineries have exceeded their planned target. The crude throughput in IOC (Guwahati, Digboi, Bongaigaon & Panipat), BPCL (Kochi), HPCL(Mumbai), CPCL (Narimanam(CBR) & Manali), & EOL (Vadinar)  refineries was less than their planned target. B. REASONS FOR SHORTFALL : Company / State Reasons for shortfall IOCL, Guwahati ●   Restricted throughput on account of emergency shutdown of Coking unit for high pressure drop of furnace. IOCL, Digboi ●   In-line with Assam crude availability. IOCL,Bongaigaon ●   In-line with Ravva crude availability. IOCL, Panipat ●  Restricted throughput on account of emergency shutdown of Hydrocracker unit (for catalyst change). A statement showing refinery-wise production during the month of June, 2011 and cumulatively for the period April- June, 2011 vis-à-vis 2010-11 planned target is at Annexure-II. III.  REFINERY CAPACITY UTILISATION [excluding RPL(SEZ)] Month Utilisation (%) Period Utilisation(%)  June, 2011* 114.0 April- June, 2011 113.0  June, 2010 105.7 April- June, 2010 104.3 IV.        A.  NATURAL GAS PRODUCTION Month / Period Planned Target (MCM) Actual Production (MCM) %age achieve-ment Surplus(+) Shortfall(-) Vis-à-vis target   (%age) Surplus(+) Shortfall(-) over last year     (%age) June, 2011* 4160.5 3975.0 95.5 -4.5 -11.7 April- June, 2011* 12452.1 12215.0 98.1 -1.9 -10.2 April- June, 2010 13604.1 MCM: Million Cubic Metres.          *: Provisional. B.     COMPANY-WISE ACHIEVEMENT Company / State Planned Target (MCM) Actual Production (MCM) %age achievement Surplus(+) Shortfall(-) (%age) ONGC 1836.3 1838.6 100.1 0.1   Gujarat 145.3 153.3 105.5   Rajasthan 1.0 1.5 143.4   Andhra Pradesh 103.5 108.9 105.2   Tamil Nadu 102.9 106.3 103.3   Assam 38.7 40.5 104.5   Tripura 46.1 52.7 114.4   Mumbai High Offshore 1398.8 1375.5 98.3 OIL 218.4 210.3 96.3 -3.7   Assam 197.6 189.2 95.7   Arunachal Pradesh 1.6 1.5 96.8   Rajasthan 19.2 19.5 101.7 PRIVATE/JVC 2105.8 1926.1 91.5 -8.5   Onshore $ 60.6 60.0 99.0   Offshore 2045.2 1866.1 91.2 TOTAL 4160.5 3975.0 95.5 -4.5 $: Including Coal Bed Methane production. C.     REASONS FOR SHORTFALL Company / State Reasons for shortfall ONGC (Mumbai High Offshore) · Less by down steam consumers i.e. RCF & MSEB affected production. Closure of wells due to revamping of HP sep-A (under NHRC project). OIL (Assam) · Less gas production and sale in Assam due to default in upliftment by customer.