India’s Downstream Petroleum Sector

InternatIonal energy agency KIeran clarKe (australIan Department of resources, energy anD tourIsm) anD Dagmar graczyK (Iea) The International Energy Agency (IEA), an autonomous agency, was established in November 1974. Its mandate is twofold: to promote energy security amongst its member countries through collective response to physical disruptions in oil supply and to advise member countries on sound energy policy. The IEA carries out a comprehensive programme of energy cooperation among 28 advanced economies, each of which is obliged to hold oil stocks equivalent to 90 days of its net imports. The Agency aims to: n Secure member countries' access to reliable and ample supplies of all forms of energy; in particular, through maintaining effective emergency response capabilities in case of oil supply disruptions. n Promote sustainable energy policies that spur economic growth and environmental protection in a global context – particularly in terms of reducing greenhouse-gas emissions that contribute to climate change. n Improve transparency of international markets through collection and analysis of energy data. n Support global collaboration on energy technology to secure future energy supplies and mitigate their environmental impact, including through improved energy efficiency and development and deployment of low-carbon technologies. n Find solutions to global energy challenges through engagement and dialogue with non-member countries, industry, international organisations and other stakeholders. The European Commission also participates in the work of the IEA. Please note that this publication is subject to specific restrictions that limit its use and distribution. The terms and conditions are available online at InternatIonal energy agency KIeran clarKe (australIan Department of resources, energy anD tourIsm) anD Dagmar graczyK (Iea) 2010 The views expressed in this Working Paper are those of the author(s) and do not necessarily reflect the views or policy of the International Energy Agency or of its individual member countries. As this paper is a Work in Progress, designed to elicit comments and further debate, comments are welcome, directed to the authors at [email protected] 1 Executive summary  India maintains price controls on four " sensitive " petroleum products – petrol, diesel, liquefied petroleum gas (LPG), and kerosene – to insulate consumers against high global crude oil prices. India's government-owned Oil Marketing Companies (OMCs) are tasked by the Government of India (GoI) to sell these products in retail markets at a centrally-determined realised sales price. Upward revisions to prices in response to higher global crude prices are rare.  As international crude …