Indian Oil Industry

As in the US, China and Iran, oil seeped out of the soil in India as well; British travelers in Assam reported such pools from 1825 onwards. Once fractionation technology was proved in the US, industrial refining of oil became feasible. Assam Railways & Trading Company Limited was registered in London in 1881 to exploit Assams natural resources. It struck oil in exploitable volume near Digboi in 1889; at that point it transferred its oil interests to a separate company, Assam Oil Company. AOC built a refinery in Digboi in 1901. AOC was taken over in 1917 by Burmah Oil Company, which later became Burmah Shell and then Shell. Expanded and modernized a number of times, the Digboi refinery continues to function till today. Apart from the small refinery in Digboi, India did not produce refinery products when it became independent in 1947; it depended almost entirely on imports, mostly from AngloIranian Oil Companys refinery in Abadan. Three companies sold the products through their distribution networks Burmah Shell, Standard Vacuum and Caltex (now merged into Shell, Exxon and Chevron respectively). Burmah Shell was the largest, with an almost 50 per cent share of the market. In December 1953, the Indian government entered a 25:75 joint venture with Standard Vacuum for survey of 10,000 square miles in West Bengal. The company did some gravimetric and seismic surveys, and drilled seven holes. It found some gas in some which it considered non-commercial; it did not find any oil. The general impression was that Standard Vacuum put little effort into prospecting in West Bengal. This could have been due to the incentive structure. Standard Vacuum had access to cheap crude from the Gulf; if it found oil in India, the government would force it to exploit it. Its cost was likely to be higher, and the company would either have earned lower profit margins or the government would have had to protect domestic refining; Standard Vacuum would have had to negotiate the level of protection. In 1984, the government separated ONGCs gas business and gave it to a separate subsidiary, Gas Authority of India Limited (GAIL). GAIL built a pipeline from Hazira on the Gujarat coast to Delhi, and supplied gas to government-owned power stations and fertilizer plants on the way. It also set up joint ventures with government oil companies and state governments to supply gas to Bombay and Delhi for transport and domestic fuel, and to Andhra Pradesh for transport. In 1987 it set up Petronet, a joint venture with three other government oil

companies, to import LNG from Qatar. Pricing and distribution of public sector gas are entirely decided by the government; there is no element of market in this area.

Competition in Exploration
From 1979 onwards, the ministry of Petroleum began to invite international bids for exploration and development from time to time. Nine rounds of bidding were held till 1997; 32 blocks were awarded for exploration and 30 for development. The policy of government ownership and control of oil was a part of a socialist approach which applied to all economic policies. These policies became discredited when a serious balance of payments problem arose in 1989-91; a new government elected in 1991 overhauled many of the policies. It appointed two committees in 1994-95: one under the chairmanship of U Sunderarajan was asked to examine replacing administered by marketdetermined prices, and a strategic planning group on restructuring of the oil industry (R Group) was asked to look at the structure and organization of the industry. The story of which of their recommendations influenced policy and how far is convoluted; but the government made the following major policy changes.
Fig 1 Oil output and imports 180 160 140 120 Million tons 100 80 60 40 20 0 1972-73 1976-77 1980-81 1984-85 1988-89 1992-93 1996-97 2000-01 2004-05 Crude output Crude imports Product output Product imports

Competition in user Industries

A major entry barrier into oil refining and gas is lack of competition in major markets for refined products. Government dominance of user industries and the losses it forces them to make limit their capacity to pay internationally comparable prices. Some of the user firms also suffer from endemic liquidity problems on account of their poor profitability, and delay payments for feedstock. Two such industries are important: electricity, which in other countries is an important market for gas and furnace oil, and fertilizer, whose preferred feedstocks are gas and naphtha. Overstatement of costs is not very effective. The electricity industry is dominated by electricity boards, which are essentially departments of state governments and have no operational freedom. The prices they charge are decided by the governments, and are fixed at unremunerative levels. As a result, they depend for investment funds on state governments, which are themselves in no great financial shape. Owing to their unprofitability, they are often short of liquidity and delay paying suppliers of fuel. Till 2004, they had run up enormous debts to coal and oil companies. Then the central government forced state governments to settle the debts as part of more general financial strengthening. The centre has the power and influence to force state governments to pay. Private companies would not be able to do so. Hence the electricity boards remain unpromising customers for gas or furnace oil produced by private companies. The centre tried to break this impasse by passing the Regulatory Commissions Act in 1998. It appointed a Central Electricity Regulatory Commission and persuaded a number of states to set up then own ERCs. It also passed a new Electricity Act in 2002 which envisaged introduction of competition from the private sector. Under its persuasion, a number of states corporatized their electricity boards and separated generation and distribution. But despite all this activity, electricity pricing practices did not change. Electricity boards continued to be financially weak and hence poor customers for hydrocarbon products. As long as they remain unable or unwilling to pay, enterprises of the central government, in gas, oil and electricity, will have an advantage in collecting their dues from state electricity boards as against any private competitors that may come up. The fertilizer industry produces nitrogenous, phosphatic, compound and mixed fertilizers. Of these, only nitrogenous fertilizers require hydrocarbon feedstocks; the normal feedstocks are gas and naphtha, which are first converted to ammonia and then into its compounds. Phosphatic and complex fertilizers were decontrolled in 1992, and nitrogenous fertilizers with low nitrogen content in 1994. But urea, which constitutes 85 per cent of nitrogenous fertilizer

consumption, remains under control. It is administered by the Fertilizer Industry Coordination Committee, which is constituted entirely of central government secretaries except for two representatives of private plants. FICC operates a retention price scheme. It collects output and cost figures from all plants, adds 12 per cent return on capital, and thereby arrives at the total realization required. It divides the realization by the nitrogen output to get nitrogen price, which is then used to derive the prices of various fertilizers. The difference between the prices and the costs is given to plants as subsidy or taken away as tax. A similar exercise is done to calculate total transport costs to the farmer, which are then so distributed between plants that farm gate price of urea is the same across the country. While input costs rose, the ministry of fertilizers has hesitated to raise prices. The result is that it is paying an enormous fertilizer subsidy. To keep the subsidy down, it has endeavoured to keep input prices as low as possible. This is one reason why the government has tried to commandeer gas supplies from private producers and reneged on the freedom of pricing promised to them. The domination of the electricity and the fertilizer industries by the central and state governments, the losses they make and the consequent pressure to keep input prices low make the two industries unattractive as customers. This is not so material to public enterprises whose losses are borne by the government, but their ability to bear losses gives them an advantage against power plants, and discourages private investment in hydrocarbons. Unless electricity and fertilizer markets are decontrolled, this handicap of private hydrocarbon firms cannot be removed.

Competition in Refining Industry

Refinery licences were given to the Birla group (jointly with Hindustan Petroleum Corporation, a subsidiary of IOC) in 1988, the Essar group in 1993, and Reliance Industries in 1996. The Birlas Mangalore refinery was ready by 1999; it could not be started because HPC, whom the Birla group had taken in as partner for its access to market, refused to lift the products. Finally the Birla group sold off its 37.38 per cent stake to ONGC in 2003. The first phase of the Reliance refinery in Jamnagar was ready in 1999. Although Reliance got a licence for petrol pumps in 2002, it has sold only a small proportion of its petrol and diesel

output through pumps; it has exported the bulk. In 2007, it sought and got 100% EOU status. It gave Reliance duty-free access to crude provided it balanced its total imports and exports. The Ruias Vadinar refinery went onstream in November 2006. The delays were partly due to their legendary lack of finance; but they were also not in a hurry because they could not work out a feasible marketing strategy. Distribution has handicapped growth of private refining, and hence emergence of competition. On 1 April 2002, the government announced the abolition of the Administered Price Mechanism and of the Oil Coordination Committee which administered the price controls. It introduced direct subsidies on kerosene and LPG (Appendix-table H1), and raised taxes on petrol and domestic crude (Appendix-table G7). The petroleum ministry issued retail distribution licences to ONGC, GAIL, OIL, Reliance Industries, Mangalore Refineries, Essar Oil and Cairn Energy. Of the licensees, only Reliance and Essar opened a significant number of pumps (Appendix-table F3). Reliance set up pumps which were shopping centres at the same time. On the highways, they also offered food, accommodation and baths to truck drivers. They sold 410 kiloliters a month on the average in 2005-06, against public sector outlets which sold 140 kilolitres. So although they had only 1432 outlets out of the total 30,000, their share of retail sales was close to 14 per cent (Appendix-table F1). Then, on 27 March 2007, Reliance applied for the status of a 100% export-oriented unit; it got that status in February 2008. In 2007-08, its exports came to 60 per cent of its sales. On 24 March 2008, Reliance announced that it was closing down all its petrol pumps. The reason was that the government was subsidizing petrol and diesel sold out of its companies pumps, but did not give the subsidies to private competitors. So retail sales were no longer profitable for Reliance. Essar did not take a public decision to close down pumps; it simply stopped regular supplies to its pumps. As Table 3 shows, its sales in 2007-08 were insignificant relatively to the market. Thus as from May 2008, retail sales of petrol and diesel oil are a government monopoly (Appendix- table F2); there is no competition. One consequence of this lack of competition was the recurring shortage of diesel oil in Tamil Nadu between May and August 2008, when Reliance was exporting it at the same time. Reliance had no petrol pumps any more, so it could not have supplied the market. It could have sold diesel to public sector oil companies, but then it would have breached the conditions of its EOU status. The EOU category, introduced into the trade policy in the 1960s, has outlived its usefulness. While it is reasonable to exempt exports from domestic

taxes, there is no reason to make that exemption conditional on minimum exports. It is not certain whether the segregation of exporters and domestic producers was useful when it was tried first; it has outlived its usefulness, and in the Tamil Nadu diesel crisis it proved counterproductive.

Competition in Gas Industry

Automotive fuels have to be reached to vehicle owners; hence oil refining companies cannot do without access to a marketing network. Gas, however, requires an expensive transport network in the form of pipelines; hence gas producers prefer to sell to as few consumers as possible, and prefer large buyers. Where gas has been available beyond industrial needs, it has been piped to households; but such domestic networks have been confined to cities. Unless pipelines of different suppliers get interconnected, there is no competition between them; each has a monopoly of supply to the customers connected to its pipeline. There is only one common carrier pipeline network in India. It has been built by Gujarat State Petroleum Corporation through two subsidiaries Gujarat State Petronet, whose pipelines connect the cities of Gujarat, and Gujarat Gas, which lays retail connections within the cities. It transports supplies from three sources to Bombay and cities of Gujarat: liquefied natural gas from Qatar that Petronet brings into Dahej, gas supplies from Gujarat Gas, a British Gas subsidiary, which in turn buys gas from ONGC and sells it across Gujarat, and GAILs sales in Gujarat. GAIL was incorporated in 1984 to evacuate associated gas from ONGCs Gujarat oilfields. Its most important gas pipeline is the Hazira-Vijaypur-Jagdishpur pipeline of GAIL which carries ONGCs gas output from Gujarat to a series of power and fertilizer plants from the Gujarat coast to Punjab. As its gas supply ran short, it also started taking Petronets gas imports from Qatar. Assam Gas Company, which is owned by the government of Assam, supplies gas to a fertilizer plant, a petrochemical plant, four power stations, 250 tea gardens, 400 industrial establishments and 20,000 domestic consumers. Reliance, which found considerable gas offshore in the Krishna-Godavari field starting in 2003, has not laid pipelines to evacuate the gas because it has not yet finalized customers. As shown in Chapter VI above, the two industries that are major potential customers, electricity

and fertilizers, are owned by the central and state governments. Most of the enterprises in them make losses which are financed by governments; it would be impossible for new private plants to compete with these plants. Since these markets are closed, the only feasible option for Reliance is to sell its output to GAIL at whatever price it can get, and let the government distribute it to plants of its choice.

Conclusion
In 2007-08, Indias five largest companies in terms of sales were oil companies. Four out of five were owned by the government. The sales of the sixth Essar Oil were negligible. Reliances share of sales was 17 per cent of all the oil companies sales, but 60 per cent of its output was exported. So it does not require much analysis to conclude that the Indian oil industry is an oligopoly, and that it is dominated by government firms. The retail market for petrol and diesel is almost entirely a government monopoly. This monopoly also affects exploration and production, for as we have seen, a number of companies that have struck oil or gas cannot find a domestic market because of the governments monopoly of distribution.
Indias oil companies' revenues, 2007-08

Company Indian Oil Corporation Reliance Industries Bharat Petroleum Hindustan Petroleum Oil and Natural Gas Corporation Essar Oil Total
Source: Company annual accounts.

Rs billion 2015 1112 972 939 755 6 5799

Per cent 34.7 19.2 16.8 16.2 13 0.1 100

Growth of Indian Petroleum Industry at a Glance

Item 1. Reserves! (Balance Recoverable) (i) Crude Oil

Unit

200001

200102

200203

200304

200405

200506

2006-07*

Mn. Tonne Bn. Cub. Mtr.

703

732

741

733

739

786

756

(ii) Natural Gas 2. Consumption (i) Crude Oil (in terms of refinery crude throughput) (ii) Petroleum Products (excluding RBF) 3. Production (i) Crude Oil (ii) Petroleum Products 4. Imports & Exports (i) Gross Imports (a) Qty : Crude Oil POL Products Total (a) (b) Value : Crude Oil POL Products Total (b) Pol. Imports

760

763

751

854

923

1101

1090

Mn. Tonne

103.44

107.27

112.56

121.84

127.12

130.11

146.55

Mn. Tonne

100.07

100.43

104.13

107.75

111.63

113.21

119.55

Mn. Tonne

32.43

32.03

33.04

33.37

33.98

32.19

33.99

Mn. Tonne

95.61

100

104.14

113.4

118.23

119.75

135.26

Mn. Tonne Mn. Tonne Mn. Tonne

74.1 9.27 83.37

78.71 7.01 85.72

81.99 6.74 88.73

90.43 7.9 98.33

95.86 8.87 104.69

99.41 11.68 111.09

110.86 16.97 127.83

Rs. Billion Rs. Billion Rs. Billion Rs. Billion

659.32 120.93 780.25 714.97

603.97 72.49 676.46 667.7

761.95 82.06 844.01 853.67

835.28 96.77 932.05 945.2

1170.03 148.88 1318.91 1340.94

1717.02 255.75 1972.77 1946.4

2199.91 403.89 2603.8 2582.59

as per DGCI&S (ii) Exports (a) Qty POL Products (b) Value POL Products (iii) Net Imports: (a) Qty : Crude Oil POL Products Total (a) (b) Value : Crude Oil POL Products Total (b) (iv) Unit Value of Crude Oil Imports (Gross) 5. India's Total Exports 6. Pol. Imports as % of India's Total Exports (i) Gross Imports (ii) Net Imports 7. Contribution of Oil Sector to Centre/State Resources Rs. Billion (i) Royalty from 22.72 24.86 30.67 31.74 42.71 50.6 N.A. Rs. Billion 76.72 82.19 108.68 167.81 299.28 467.2 801.72 Mn. Tonne 8.37 10.07 10.29 14.62 18.21 21.51 32.4

Mn. Tonne Mn. Tonne Mn. Tonne

74.1 0.9 75

78.71 -3.06 75.65

81.99 -3.55 78.44

90.43 -6.72 83.71

95.86 -9.83 86.48

99.41 -9.83 89.58

110.86 -15.43 95.43

Rs. Billion Rs. Billion Rs. Billion

659.32 44.21 703.53

603.97 -9.7 594.27

761.95 -26.62 735.33

835.28 -71.04 764.24

1170.03 -150.4 1019.63

1717.02 -211.45 1505.57

2199.91 -397.83 1802.8

Rs./MT

8898

7673

9293

9237

12206

17272

19844

Rs. Billion

2035.71

2090.18

2551.37

2933.67

3618.79

4564.18

5716.42

% %

38.3 34.6

32.4 28.4

33.1 28.8

31.8 26.1

36.4 28.2

43.2 33

45.5 31.5

Crude Oil (ii) Royalty from Gas (iii) Oil Development Cess (iv) Excise & Custom Duties (v) Sales Tax (vi) Dividend 8. Natural Gas : (i) Gross Production Bn. Cub. Mtr. Bn. Cub. Mtr.

Rs. Billion

6.08

6.59

7.78

8.54

8.29

9.81

N.A.

Rs. Billion

27.28

28.78

50.91

51.43

52.48

50.07

70.34

Rs. Billion Rs. Billion Rs. Billion

359.12 233.75 34.82

361.04 200.9 32.87

451.27 297.41 67.94

507.33 328.49 63.1

563.95 390 94.36

631.43 N.A. N.A.

718.93 N.A. N.A.

29.477

29.714

31.389

31.962

31.763

32.202

31.747

(ii) Utilisation

27.86

28.037

29.963

30.906

30.775

31.325

30.791

Abbr: NA : Not Available. Note : * : Provisional. ! : As on 1st April of Initial year. Source: Ministry of Petroleum and Natural Gas. Government of India, (downloaded from www.indiastat.com) )

Refinery-wise Crude Run and Production of Petroleum Products in India - Part I

(in 000 tonnes)
IOC Year 1990-91 Total Production Crude Run 1991-92 Total Production Crude Run 1992-93 AOD BPCL Mumbai HPCL Mumbai HPCL Visakh IOC Guwahati IOC Barauni IOC Gujarat IOC Haldia IOC Mathura

540 566

6603 6957

5506 5766

3231 3464

712 783

2206 2416

8791 9334

2608 2935

7414 7808

524 546

6630 6940

4496 4729

3676 3920

793 856

2060 2262

8877 9379

2791 3021

7925 8231

Total Production Crude Run 1993-94 Total Production Crude Run 1994-95 Total Production Crude Run 1995-96 Total Production Crude Run 1996-97 Total Production Crude Run 1997-98 Total Production Crude Run 1998-99 Total Production Crude Run 1999-00 Total Production Crude Run 2000-01 Total Production Crude Run 2001-02 Total Production

623 547

6875 7233

5619 5849

4274 4527

749 815

2097 2287

9258 9780

2810 3040

7430 7843

535 554

6831 7203

5774 6018

4203 4448

840 910

2051 2222

8830 9434

2878 3106

8121 8518

509 536

7071 7506

4913 5234

4759 5014

833 884

2039 2220

9148 9888

2998 3258

8018 8377

537 559

7065 7460

5674 5965

4753 5037

781 839

2129 2322

9476 10167

3168 3416

7934 8332

453 477

7279 7640

6238 6534

4576 4847

778 848

1720 1895

9722 10352

3189 3451

7744 8113

479 502

7591 7996

6053 6378

2308 2467

779 856

1989 2181

10043 10694

4445 4706

8302 8565

524 553

8531 8878

4955 5203

3637 3861

772 836

2017 2204

10346 10935

4432 4714

8665 8909

564 603

8433 8907

5702 6007

4252 4555

858 914

3177 3411

10429 11109

3797 4105

7875 8125

651 678

8203 8683

5189 5575

5986 6405

653 707

2889 3122

11269 12006

3502 3873

6863 7133

640

8279

5229

6334

578

2625

11028

3601

7780

Crude Run 2002-03 Total Production Crude Run 2003-04 Total Production Crude Run 2004-05 Total Production Crude Run 2005-06 Total Production Crude Run 2006-07* Total Production Crude Run

653

8744

5641

6706

656

2876

11697

4026

8031

577 581

8221 8711

5660 6078

6386 6851

390 458

2637 2994

11734 12434

4031 4513

7880 8207

584 602

8259 8757

5707 6108

7145 7591

739 891

3815 4304

12029 12758

4112 4518

7932 8248

636 651

8598 9138

5725 6118

7340 7825

868 1002

4563 5082

11037 11698

4971 5418

6145 6387

605 615

9627 10298

5817 6248

7515 7980

750 864

5016 5553

10839 11543

4988 5502

7463 7938

567 586

11234 12030

6981 7419

8782 9377

726 839

4931 5469

12142 12953

5282 5836

8425 8883

Source:

Ministry of Petroleum and Natural Gas. Government of India, (downloaded from www.indiastat.com)

Refinery-wise Crude Run and Production of Petroleum Products in India - Part II

(in 000 tonnes) (CRL) KRL Cochin CPCL(MRL) Manali Narimanam BRPL Assam NRL Numaligarh RPL Jamnagar EOL Vadinar

Year

IOC Paniput

MRPL Mangalore

ONGC Tatipaka

Total

1990-91 Total Production Crude Run 1991-92 Total Production Crude Run

4715 5006

5279 5698

957 1139

48562 51772

4554 4846

5147 5529

976 1164

48349 51423

1992-93 Total Production Crude Run 1993-94 Total Production Crude Run 1994-95 Total Production Crude Run 1995-96 Total Production Crude Run 1996-97 Total Production Crude Run 1997-98 Total Production Crude Run 1998-99 Total Production Crude Run 1999-00 Total Production Crude Run 2000-01 Total Production Crude Run 2001-02 5323 Total 6398 5676 549 1314 2052 5043 13 27542 100004

4853 5122

4927 5323

944 1116

50359 53482

4568 4862

5313 5728

120 126

1020 1167

51084 54296

4803 5135

6461 6921

370 382

1005 1179

52957 56534

7010 7421

5162 5599

358 370

1011 1215

23 39

55081 58741

6890 7293

6143 6621

332 345

1306 1542

2635 2912

59005 62870

7312 7729

6437 6965

533 556

1485 1718

3552 3853

61308 65166

1908 2208

7304 7770

5652 6101

619 644

1445 1653

3737 4069

64544 68538

3688 4153

7826 7830

5870 6377

612 636

1665 1905

186 215

4713 5200

10267 11912

79411 85964

5206 5707

7039 7520

5524 6046

559 579

1353 1488

1293 1451

5879 6438

23556 26033

95614 103444

Production Crude Run 2002-03 Total Production Crude Run 2003-04 Total Production Crude Run 2004-05 Total Production Crude Run 2005-06 Total Production Crude Run 2006-07* Total Production Crude Run 5822 6797 6123 566 1475 2307 5487 13 29654 107274

5561 6101

7063 7580

5658 6176

631 643

1352 1463

1665 1879

6699 7253

91 93

27904 30544

104140 112559

5818 6338

7419 7854

5827 6387

645 653

1963 2126

1961 2200

9352 10069

90 91

30066 32345

113463 121840

5826 6390

7387 7924

7397 8181

733 742

2118 2311

1834 2042

11059 11809

92 93

31904 34309

118233 127117

5780 6507

6456 6939

8742 9680

671 682

2246 2356

1918 2133

11268 12014

92 93

29957 33163

119750 130109

8016 9435

7237 7742

8841 9784

609 618

1932 2067

2227 2504

11689 12536

93 94

34174 36616

1372 1763

135260 146551

IOC : Indian Oil Corporation Limited.

HPCL : Hindustan Petroleum Corporation Limited. AOD : Assam Oil Division.

BPCL : Bharat Petroleum Corporation Limited.

Source : Ministry of Petroleum and Natural Gas, Govt. of India. Abbr. : IOC : Indian Oil Corporation Limited CPCL : Chennai Petroleum Corporation Limited. NRL : Numaligarh Refineries Limited. ONGC : Oil & Natural Gas Commission/Corporation Limited. CRL : Cochin Refineries Limited.

BRPL : Bongaigaon Refinery & Petrochemicals Limited. MRPL : Mangalore Refinery & Petrochemicals Limited. RPL : Reliance Petroleum Limited.

KRL : Kochi Refineries Limited

Source : Ministry of Petroleum and Natural Gas. Government of India, (downloaded from www.indiastat.com)

Production of Petroleum Products in India

( ' 000 Tonne)

Products (a) From Crude Oil

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07*

2007-08*

I. Light Distillates of which LPG Mogas Naphtha SBPS/Hexane Others (LD) II. Middle Distillates of which Kerosene ATF/RTF/Jet A-1 HSD LDO JBO MTO Others (MD) III. Heavy Ends of which Furnance Oil LSHS/HHS/RFO Total Fuel Oils Lube Oils Bitumen Petroleum Coke Paraffin Wax Others Waxes Total Waxes Others (HE) Total Production Crude Throughput

25048 4088 8070 9908 93 2982

26539 4778 9699 9180 84 2882

28619 4903 10361 9650 82 3705

31971 5348 10999 11317 89 4307

32865 5570 11057 14100 81 2138

32427 5525 10502 14509 98 1891

38104 6315 12539 16660 79 2590

40111 6732 14167 16440 2772

52445 8714 2513 39052 1481 57 214 685

54409 9681 2595 39899 1703 44 212 531

55937 10028 3053 40207 2079 47 243 570

60018 10187 4289 43316 1659 43 242 567

62509 9298 5201 45903 1546 36 226 561

64432 9078 6196 47572 923 39 212 663

71225 8491 7805 53465 803 32 187 661

76649 7794 9107 58361 671 716

18121 6479 4913 11392 684 2721 2473 51 61 112 739 95614

19056 7488 4739 12227 651 2561 2784 45 37 82 751 100004

19584 7529 4638 12167 684 2941 2659 42 3 45 1088 104140

21474 8737 4635 13372 666 3397 2743 53 0 53 1243 113463

23205 10560 4410 14780 646 3349 3162 64 4 68 1010 118579

22891 10320 3985 14305 677 3576 3182 63 3 66 119750

25931 12325 3372 15697 825 3891 3779 63 -2 135260

28170 12638 3167 881 4507 4129 64 -1 2784 144930

103444

107274

112559

121840

127116

130109

146551

(b) From Natural Gas LPG 2045

Abbr.: LPG : Liquefied Petroleum Gas. HSD : High Speed Diesel. LDO : Light Diesel Oil. ATF : Aviation Turbine Fuel. Note : LD : Includes Propylene, C-3, Propane, Hexane, Special Boiling Point Spirit, Benzene, Toluene, Petroleum Hydro Carbon Solvent, Natural Heptane, Methyl Tertiary Butyl Ether, Poly Isobutine, PBFS and MEKFS. MD : Includes Mineral Turpentine Oil, JP-5, Linear Alkyl Benzene Feed Stock, Aromex, Jute Batching Oil, Solvent 1425, Low Sulphur Heavy Fuel HSD, DHCB and Special Kerosene. HE : Includes Carbon Black Feed Stock, Sulphur, Solar Oil, LARO and Extracts. * : Provisional. Source : Ministry of Petroleum and Natural Gas. Government of India, (downloaded from www.indiastat.com)

2205

2370

2320

2240

2185

2093

2060

: Per Capita Consumption of Selected Petroleum Products in India

(in Kgs.)

Year

Naphtha

M.S.

SKO

HSDO

LDO

F.O.(Regular)

LSHS/HHS

India-Total@ Sales/ Consumption 57.3 59.3 62 63.7 69.1 68.4 70.6 72.9 75.2 81.1

1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95

4.2 4.2 3.6 4.3 4.1 4.1 4.1 4 3.8 4

3 3.2 3.6 3.9 4.2 4.2 4.2 4.2 4.5 4.9

8.3 8.6 9.1 9.8 10 10 9.9 10 10.3 10.6

19.7 20.6 22.3 23.8 25.2 25 26.9 28.7 30.6 33.4

1.5 1.5 1.6 1.8 1.8 1.8 1.7 1.7 1.6 1.6

5 4.9 5.3 5.8 5.5 5.3 5.8 6.2 5.9 6.9

5.3 5.5 5 4.9 5.3 5.4 5 4.7 4.9 4.8

1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07*

4 4.4 4.9 6.4 8.1 7.8 7.9 11.5 7.1 13.6 11.1 11.3

5.1 5.2 5.4 5.7 6 6.4 6.8 7.3 7.7 8 7.9 8.2

10.2 9.6 10.3 10.9 10.9 10.4 9.8 10.1 9.2 9.1 8.7 8.4

35.2 36 37.8 38 40 36.9 35.6 35.5 35.9 38.5 36.7 37.9

1.4 1.3 1.3 1.3 1.5 1.4 1.6 2 1.1 1.4 0.8 0.6

7.1 7.1 7 6.7 6.9 6.2 8.2 7.8 7 8.9 8.1 8.2

4.6 4.7 4.5 4.7 4.9 4.9 4.4 4.6 4.5 4.3 3.6 3

79.2 86.2 90.1 92.2 102 103.7 97.8 108.1 112.9 116.8 111.7 115.5

@ : All India actual consumption of all products incl. Ref. Fuel & International Bunkers upto the year 1995-96. Later on total consumption includes imports from Pvt. Parties and Excluding RBF. * : Provisional. Source: Ministry of Petroleum and Natural Gas. Government of India, (downloaded from www.indiastat.com)

Sales and Marketshares

Table F1: Sales/Consumption of Petroleum Products and Marketshare of Oil Companies in India
(Qty. ' 000 tonne)

Caltex/ Year % S/C I.O.C B. Shell/ BPCL Esso/ HPCL HPCL@ (VMU) IBP Others COs

Imports by Pvt. Parties Total

S/C 1991-92 % S/C 1992-93 %

32362 56.8 32906 55.9

10688 18.8 11409 19.4

11047 19.4 11511 19.5

2498 4.4 2686 4.6

379 0.7 390 0.7

56974 100.1 58902 100.1

S/C 1993-94 % S/C 1994-95 % S/C 1995-96 % S/C 1996-97 % S/C 1997-98 % S/C 1998-99 % S/C 1999-00 % S/C 2000-01 % S/C 2001-02 % S/C 2002-03 % S/C 2003-04 % S/C 2004-05 % S/C 2005-06 200607# % S/C %

33501 55.1 36359 53.9 39858 53.3 42054 53.1 43465 51.6 45489 50.2 49391 50.9 47812 47.8 47151 46.9 46336 44.5 46778 43.4 48018 43 46160 40.8 53425 44.2

12099 19.9 13160 19.5 14763 19.7 15732 19.9 16356 19.4 17445 19.3 18894 19.5 19368 19.4 19047 19 19843 19.1 20297 18.8 20697 18.5 20477 18.1 22661 18.8

12011 19.8 12588 18.6 14151 18.9 15460 19.5 16000 19 16249 17.9 17497 18 17887 17.9 17499 17.4 18228 17.5 18577 17.2 19091 17.1 18309 16.2 19698 16.3

2860 4.7 2990 4.4 3273 4.4 3471 4.4 3597 4.3 3772 4.2 4133 4.3 3959 4 3747 3.7 3769 3.6 4162 3.9 4594 4.2 4316 3.8 $

341 0.6 390 0.6 473 0.6 507 0.6 420 0.5 1811 2 736 0.8 960 1 1648 1.6 1948 1.9 2316 2.1 2193 2 2440 2.2 2156 1.8

2027 3 2313 3.1 1944 2.5 4452 5.3 5796 6.4 6435 6.6 10088 10.1 11340 11.3 14002 13.4 15621 14.5 17041 15.3 21511 19 22809* 18.9

60812 100.1 67514 100 74831 100 79168 100 84290 100 90562 100 97086 100 100074 100.2 100432 99.9 104126 100 107751 100 111592 100 113213 100 120749 100

S/C : Sales/Consumption. Note : @ : Included under Esso/HPCL from 1980-81 Onwards.

: Consumption excludes RBF. # : Provisional $ : IBP has been merged with IOC. * : Private consumption figures includes imports also.

Source: .Ministry of Petroleum & Natural Gas, Govt. of India. (downloaded from www.indiastat.com)

State/Company-wise Number of Retail Outlets of Petroleum Products in India

(As on 01.04.2008) States/UTs IOCL/AOD Andhra Pradesh Arunachal Pradesh Assam Bihar Chhatisgarh Delhi Goa Gujarat Haryana Himachal Pradesh Jammu & Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya 1391 HPCL 753 BPCL 706 Total 2850 IOCL/AOD 952

(As on 01.04.2007) IBP 363 HPCL 715 BPCL 653 Total 2683

46 440 854 213 201 21 914 868

0 61 252 137 96 31 404 337

1 22 295 148 105 39 433 254

47 523 1401 498 402 91 1751 1459

39 377 551 153 152 18 645 585

2 26 223 41 47 3 240 224

0 61 227 140 95 31 393 307

1 15 282 137 105 37 423 238

42 479 1283 471 399 89 1701 1354

158

63

52

273

124

28

62

50

264

175 338 1113 761

99 163 524 466

90 148 519 381

364 649 2156 1608

154 239 858 523

10 67 181 192

96 158 474 445

88 145 481 366

348 609 1994 1526

753 1194 53 94

370 887 0 16

472 1010 2 6

1595 3091 55 116

602 913 42 75

91 211 5 9

350 864 0 15

444 970 0 5

1487 2958 47 104

Mizoram Nagaland Orissa Punjab Rajasthan Sikkim Tamil Nadu Tripura Uttar Pradesh Uttaranchal West Bengal UTs Andaman & Nicobar Chandigarh Dadra & Nagar Haveli Daman & Diu Lakshadweep Pondicherry India

19 41 490 1436 1086 14 1385 38 2346 188 903

2 2 183 633 654 3 739 0 916 96 389

0 3 238 544 546 11 779 0 916 78 408

21 46 911 2613 2286 28 2904 38 4178 362 1700

15 37 351 922 886 12 1038 36 1728 144 601

0 2 74 426 131 2 236 1 481 35 223

2 2 164 577 624 3 714 0 870 95 376

0 2 231 521 506 10 712 0 890 70 389

17 43 820 2446 2147 27 2700 37 3969 344 1589

6 22

0 11

0 10

6 43

5 18

0 4

0 11

0 10

5 43

7 9 0 49 17627

3 3 0 36 8329

1 3 0 18 8238

11 15 0 103 34194

7 6 0 33 12841

0 2 0 10 3590

3 2 0 33 7909

1 3 0 15 7800

11 13 0 91 32140

Abbr. : IOCL/AOD : Indian Oil Corporation Limited/Assam Oil Division. IBP : IBP Co. Limited. HPCL : Hindustan Petroleum Corporation Limited. BPCL : Bharat Petroleum Corporation Limited Source: .Ministry of Petroleum & Natural Gas, Govt. of India. (downloaded from www.indiastat.com)