Bhatinda:
Stating that India faces "formidable" challenges on the energy front, Prime Minister Manmohan Singh today said that spiralling international oil prices have put a strain on the country's import bill and domestic prices need to be rationalised.
Speaking at the opening of a $4 billion refinery in Bhatinda, the Prime Minister added "With imports accounting for about 80 per cent of our crude supplies, the spiralling prices of crude in the international market have put a severe strain on our import bill," he said.
"State-owned oil companies haven't raised the prices of diesel, domestic LPG and kerosene for almost a year despite the cost of raw material rising by a quarter. We also need to rationalise prices and at the same time ensure that the poor and needy are shielded from the effects of such a rationalisation," he said.
The government, in June 2010, had freed petrol prices from its control but PSU oil companies haven't been able to raise the prices because of political pressure. Petrol price (Rs 65.64 per litre) in Delhi is about Rs 9 short of its cost.
The government controls rates of diesel, domestic LPG and kerosene. Oil companies sell diesel at a discount of Rs 16.16 a litre, while they lose Rs 32.59 on sale of every litre of kerosene. A 14.2-kg domestic LPG cylinder costs Rs 570.50 less than its actual cost.
"In order to insulate the common man from the impact of rising oil prices, the Government shoulders a sizeable portion of the burden by pricing diesel, Kerosene and domestic LPG below their market prices," he said.
Indian Oil Corp, Bharat Petroleum and Hindustan Petroleum lost about Rs 138,800 crore in revenues on selling diesel, domestic LPG and kerosene below cost in 2011-12. The revenue loss in this fiscal is estimated at Rs 208,000 crore.
"The challenges we face on the energy front are formidable. We need adequate supplies of energy at affordable prices. Domestic sources of crude oil and gas are inadequate to meet the growing demands of our rapidly expanding economy," Dr Singh said.
The Prime Minister said that the Guru Gobind Singh Refinery with a capacity of 9 million tonnes an year, was built with a total investment of Rs 20000 crore and is an example of what the public and the private sectors can achieve in partnership with each other.
"Ever since the project was initiated in the year 2004, our government has been monitoring its progress regularly and I am happy that our long standing commitment to the people of Punjab has finally been fulfilled," he said.
HMEL, a joint venture of steel czar Lakshmi N Mittal's Mittal Energy Investments and Hindustan Petroleum Corp Ltd (HPCL), was built in 42 months.
"The refinery will produce fuel, meeting Euro-III and IV standards and it only reiterates our commitment of safeguarding our environment while pushing ahead with growth," Dr Singh said.
"The products from this refinery will especially help in bridging the gap between demand and supply in the northern region of the country" he added.
Stating that the refinery sector in India has grown phenomenally, he said that the nation has emerged as a refining hub with capacity increasing from 62 million tonnes per annum in 1998 to 213 million tonnes today.
"We have sufficient refining capacity to enable us to export petroleum products," the Prime Minister said.
The Bhatinda refinery will help boost India's exports and may open fuel sales to Pakistan.
Pakistan will allow import of fuel including petrol and diesel from India, after removing non-tariff barriers on November 2. The distance between Bhatinda and Lahore is about 100 miles.
Dr Singh said, "We need to take steps to conserve our scarce energy resources. There is no room for inefficient and wasteful usage of fuel, be it petrol, diesel, kerosene or gas."
"We need to adopt better technology and consumers should be made aware of the benefits of fuel conservation" he added.
The Prime Minister said that the refineries act as catalysts for industrial growth and development in the areas in which they operate.
"I am sure that this refinery will provide the impetus for the setting up of a number of major industries and ancillary units and will also lead to the sustained growth and development in and around Bhatinda," he said.
The unit is the first investment in downstream oil sector by Mr Mittal, Chairman of ArcelorMittal, the world's biggest steelmaker. Mittal Energy has a joint venture with state-owned Oil & Natural Gas Corporation (ONGC), which has offshore oil exploration blocks in Nigeria.
Meanwhile, stating that Punjab has been the torch bearer of the Green Revolution, Dr Singh said that the state has contributed greatly to country's food security.
"The State needs a new wave of industrialisation. Apart from contributing to economic growth of the state, such industrialisation would also create new employment opportunities for the youth of Punjab," he added.
"We need more skilled people in Punjab so that they can drive the growth of industries," he said.
"Punjab has not lived up to its potential in areas such as Information Technology and we need to correct this situation," he said. "We also need improved infrastructure in Punjab - better roads and transport facilities, reliable power supply and so on" he added.
Speaking at the opening of a $4 billion refinery in Bhatinda, the Prime Minister added "With imports accounting for about 80 per cent of our crude supplies, the spiralling prices of crude in the international market have put a severe strain on our import bill," he said.
"State-owned oil companies haven't raised the prices of diesel, domestic LPG and kerosene for almost a year despite the cost of raw material rising by a quarter. We also need to rationalise prices and at the same time ensure that the poor and needy are shielded from the effects of such a rationalisation," he said.
The government, in June 2010, had freed petrol prices from its control but PSU oil companies haven't been able to raise the prices because of political pressure. Petrol price (Rs 65.64 per litre) in Delhi is about Rs 9 short of its cost.
The government controls rates of diesel, domestic LPG and kerosene. Oil companies sell diesel at a discount of Rs 16.16 a litre, while they lose Rs 32.59 on sale of every litre of kerosene. A 14.2-kg domestic LPG cylinder costs Rs 570.50 less than its actual cost.
"In order to insulate the common man from the impact of rising oil prices, the Government shoulders a sizeable portion of the burden by pricing diesel, Kerosene and domestic LPG below their market prices," he said.
Indian Oil Corp, Bharat Petroleum and Hindustan Petroleum lost about Rs 138,800 crore in revenues on selling diesel, domestic LPG and kerosene below cost in 2011-12. The revenue loss in this fiscal is estimated at Rs 208,000 crore.
"The challenges we face on the energy front are formidable. We need adequate supplies of energy at affordable prices. Domestic sources of crude oil and gas are inadequate to meet the growing demands of our rapidly expanding economy," Dr Singh said.
The Prime Minister said that the Guru Gobind Singh Refinery with a capacity of 9 million tonnes an year, was built with a total investment of Rs 20000 crore and is an example of what the public and the private sectors can achieve in partnership with each other.
"Ever since the project was initiated in the year 2004, our government has been monitoring its progress regularly and I am happy that our long standing commitment to the people of Punjab has finally been fulfilled," he said.
HMEL, a joint venture of steel czar Lakshmi N Mittal's Mittal Energy Investments and Hindustan Petroleum Corp Ltd (HPCL), was built in 42 months.
"The refinery will produce fuel, meeting Euro-III and IV standards and it only reiterates our commitment of safeguarding our environment while pushing ahead with growth," Dr Singh said.
"The products from this refinery will especially help in bridging the gap between demand and supply in the northern region of the country" he added.
Stating that the refinery sector in India has grown phenomenally, he said that the nation has emerged as a refining hub with capacity increasing from 62 million tonnes per annum in 1998 to 213 million tonnes today.
"We have sufficient refining capacity to enable us to export petroleum products," the Prime Minister said.
The Bhatinda refinery will help boost India's exports and may open fuel sales to Pakistan.
Pakistan will allow import of fuel including petrol and diesel from India, after removing non-tariff barriers on November 2. The distance between Bhatinda and Lahore is about 100 miles.
Dr Singh said, "We need to take steps to conserve our scarce energy resources. There is no room for inefficient and wasteful usage of fuel, be it petrol, diesel, kerosene or gas."
"We need to adopt better technology and consumers should be made aware of the benefits of fuel conservation" he added.
The Prime Minister said that the refineries act as catalysts for industrial growth and development in the areas in which they operate.
"I am sure that this refinery will provide the impetus for the setting up of a number of major industries and ancillary units and will also lead to the sustained growth and development in and around Bhatinda," he said.
The unit is the first investment in downstream oil sector by Mr Mittal, Chairman of ArcelorMittal, the world's biggest steelmaker. Mittal Energy has a joint venture with state-owned Oil & Natural Gas Corporation (ONGC), which has offshore oil exploration blocks in Nigeria.
Meanwhile, stating that Punjab has been the torch bearer of the Green Revolution, Dr Singh said that the state has contributed greatly to country's food security.
"The State needs a new wave of industrialisation. Apart from contributing to economic growth of the state, such industrialisation would also create new employment opportunities for the youth of Punjab," he added.
"We need more skilled people in Punjab so that they can drive the growth of industries," he said.
"Punjab has not lived up to its potential in areas such as Information Technology and we need to correct this situation," he said. "We also need improved infrastructure in Punjab - better roads and transport facilities, reliable power supply and so on" he added.
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