Lok Sabha Question No. 440 (UNSTARRED), answered on 2017-12-18
Subject: Prices of Petroleum Products
Ministry: PETROLEUM AND NATURAL GAS
Asked by: C. N. JAYADEVAN, N.K. PREMACHANDRAN, SAUGATA ROY, KINJARAPU RAM MOHAN NAIDU, ASADUDDIN OWAISI, NAGENDRA KUMAR PRADHAN, SUKENDER REDDY GUTHA, KOTHA PRABHAKAR REDDY

## LOK SABHA UNSTARRED QUESTION NO. 440 TO BE ANSWERED ON 18 TH  DECEMBER, 2017

## PRICES OF PETROLEUM PRODUCTS

440. SHRI C.N. JAYADEVAN:

SHRI N.K. PREMACHANDRAN:

PROF. SAUGATA ROY:

SHRI RAM MOHAN NAIDU KINJARAPU:

SHRI ASADUDDIN OWAISI:

SHRI NAGENDRA KUMAR PRADHAN:

SHRI GUTHA SUKENDER REDDY:

SHRI PRABHAKAR REDDY KOTHA:

पेट्रोल ियम और प्राक ृ तिक गैस मंत्री

## Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a) the details of increase/decrease in the prices and taxes on petrol, diesel, LPG during the last three years and the current year and the reasons for not reducing the prices of petroleum products  in  proportion  to  reduction  of  prices  of  international  crude  oil,  product-wise including crude oil prices during the said period;
- (b)  whether  the  Government  proposes  to  reduce  the  subsidy  given  to  cooking  gas  for domestic purpose and if so, the details thereof;
- (c) whether the Government proposes to introduce Goods and Services Tax (GST) on petrol, diesel and other petroleum products and if so, the details thereof;
- (d)  whether  the  State  owned  petroleum  companies/State  Governments  have  raised  any objection to include petrol, diesel and petroleum products in GST and if so, the details thereof along  with  likely  impacts  on  their  profitability  and  the  action  taken  by  the  Government  to address their concerns; and
- (e) whether the Government proposes to change the existing system of daily change in the price of petrol, diesel and LPG without stipulating specific time period and if so, the details thereof?

## ANSWER पेट्रोल ियम और प्राक ृ तिक गैस मंत्री

## (श्री धमेन्द्र प्रधान)

## MINISTER OF PETROLEUM AND NATURAL GAS (SHRI DHARMENDRA PRADHAN)

(a): The  prices of Petrol  and  Diesel  have  been  made  market  determined  by  the Government effective from 26th June, 2010 and 19th October, 2014 respectively and since then their prices are being decided by the Public Sector Oil Marketing Companies (OMCs) in line  with  the  changes  in  the  international  market  prices.  The  Public  Sector  OMCs increase and decrease the prices on the basis of the price of respective products in the international market and not to that of crude oil.

The Government continues to modulate the effective price to consumer for Subsidized Domestic LPG and Retail Selling Price (RSP) of PDS Kerosene.

The average crude oil price per barrel of the Indian basket in the international market during the last three years and the current year is given as under:-

| Year                               |   Average of Indian Basket Crude Oil ($/bbl) |
|------------------------------------|----------------------------------------------|
| 2014-15                            |                                        84.16 |
| 2015-16                            |                                        46.17 |
| 2016-17                            |                                        47.56 |
| 2017-18 (till 30th November, 2017) |                                        52.55 |

The  details  of  average  prices  of  Petrol,  Diesel  and  subsidized/non-subsidized  LPG during the last three years and current year is given as under:

| Year         |             |             | Domestic LPG       | Domestic LPG       |
|--------------|-------------|-------------|--------------------|--------------------|
|              | Petrol      | Diesel      | Subsidized         | Non- Subsidized    |
|              | (Rs./litre) | (Rs./litre) | (Rs./14.2 KG Cyl.) | (Rs./14.2 KG Cyl.) |
| 2014-15      | 66.37       | 53.38       | 415.50             | NA                 |
| 2015-16      | 61.59       | 47.01       | 418.95*            | 587.65             |
| 2016-17      | 64.61       | 53.24       | 426.94*            | 549.65             |
| 2017-18 (HI) | 66.87       | 56.19       | 462.45*            | 598.71             |

The current Excise Duty on Petrol and Diesel is Rs.19.48/litre and 15.33/litre respectively. At present, applicable GST on Domestic LPG is 5%.

- (b): After  launch  of  DBTL,  its  beneficiaries  get  the  Domestic  LPG  cylinders  at  nonsubsidized price and receive LPG subsidy directly into their bank accounts. At present, the eligible consumers are getting subsidy of Rs. 251.31 per 14.2 Kg cylinder (as applicable to Delhi market).
- (c):      The  Goods  and  Services  Tax  (GST)  has  been  implemented  w.e.f.  1.7.2017.    Five petroleum sector items viz., Crude Oil, Natural Gas, Petrol, Diesel and Aviation Turbine Fuel (ATF), are  presently  outside  the  scope  of  levy  of  GST,  till  such  time  as  they  are  notified based on the recommendation of GST Council.
- (d): Representations have been received from various companies and trade and industry associations seeking inter-alia inclusion of petroleum products under GST, which have been taken up with the Sectoral Working Group constituted by the Department of Revenue.
- (e): There is no such proposal