Lok Sabha Question No. 455 (UNSTARRED), answered on 2017-12-18
Subject: Fixing of Prices of Petroleum Products
Ministry: PETROLEUM AND NATURAL GAS
Asked by: ARVIND GANPAT SAWANT, SANJAY SHAMRAO DHOTRE, BHAVANA GAWALI (PATIL), RAHUL RAMESH SHEWALE, SANKAR PRASAD DATTA, DUSHYANT CHAUTALA, BHARTRUHARI MAHTAB

## LOK SABHA UNSTARRED QUESTION NO.455 TO BE ANSWERED ON 18 TH  DECEMBER, 2017

## FIXING OF PRICES OF PETROLEUM PRODUCTS

## †455.   SHRI ARVIND SAWANT:

SHRI SANJAY DHOTRE:

SHRIMATI BHAVANA PUNDALIKRAO GAWALI PATIL:

SHRI RAHUL SHEWALE:

SHRI SANKAR PRASAD DATTA:

SHRI DUSHYANT CHAUTALA:

SHRI BHARTRUHARI MAHTAB:

पेट्रोल ियम और प्राक ृ तिक गैस मंत्री

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

- (a) whether the Government has received complaints of inappropriate decisions taken by the Public Sector Oil Marketing Companies (OMCs) with respect to fixing prices of petrol and diesel in the country since deregulation of their prices, if so, the details thereof along with the role of the Government to keep a check on the wrong fixation of prices of petrol and diesel by OMCs in the country;, State/ UT/OMC-wise;
- (b)  whether  the  Government  has  conducted  any  study  to  ascertain  the  impact  of  such inappropriate decisions on the profits of the said companies and on the common people, if so, the details and outcome thereof;
- (c) whether the customers/consumers of petrol and diesel are not given the actual benefit that accrued to oil companies by importing the same at low prices and if so, the details thereof along  with  the  corrective  measures  taken/proposed  to  be  taken  by  the  Government  so  that benefit of the same reaches to the consumers also;
- (d)  whether  the  Government  is  aware  of  the  problems  being  faced  by  people  due  to fluctuations/frequent/daily changes in the prices of petroleum products since de-controlled by the  Government  and  if  so,  the  details  thereof  along  with  its  likely  impact  on  the  common man, inflation/ essential commodities;
- (e)  the  revenue,  profit  earned  and  dividends  generated  and  paid  by  public  sector  oil companies from the sale of petrol, diesel, LPG in India and abroad during the last three years and the current year; and
- (f)  the  barrel-wise  price  of  various  petroleum  products  in  international  market  and  their corresponding per barrel selling price in Indian market during the said period?

## 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  26 th June,  2010  and  19 th 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.

(b)  &  (c):      IOCL  has  informed  that  daily  changes  in  pricing  have  actually  benefitted  the customers at large with several of the problems that were faced earlier have been resolved:

- i. During fortnightly pricing, there used to be huge queues at the Retail Outlets causing immense trouble to the customers.  The same has been reduced.
- ii. Due  to  heavy  rush  of  customers,  product  at  several        Retail  Outlets  used  to  get exhausted leaving the needy customers without fuel. The same has been reduced.
- iii. The revision of fuel prices are carried out every day based on the International prices and therefore any drop in prices are passed on to the customers.

(d): Public Sector OMCs, namely, Indian Oil Corporation Limited, Hindustan Petroleum Corporation  Limited  and  Bharat  Petroleum  Corporation  Limited  have  implemented  daily revision of retail selling price of Petrol and Diesel in the entire country effective 16th June, 2017.

Daily price revisions of Petrol and Diesel make the retail prices more reflective of the current market conditions, minimizing the volatility in the RSP of Petrol and Diesel.  Further, it leads to increased transparency in the system and enables smoother flow of products from refinery/depots to Retail Outlets

(e): The  total  revenue,  Profit  after  Tax  and  dividends  of  the  OMCs  from  all  activities including sale of Petrol, Diesel and LPG during the last three years and current year is given as under:-

| Companies        | 2014-15   | 2015-16   | 2016-17   | (Rs. crore) H1, 2017-18   |
|------------------|-----------|-----------|-----------|---------------------------|
| Revenue          |           |           |           |                           |
| IOC              | 4,36,390  | 3,49,321  | 4,38,692  | 2,33,506                  |
| HPC              | 2,06,380  | 1,79,281  | 2,13,489  | 1,14,044                  |
| BPC              | 2,37,905  | 1,89,098  | 2,41,859  | 1,30,673                  |
| Profit After Tax |           |           |           |                           |
| IOC              | 5,273     | 10,399    | 19,106    | 8,245                     |
| HPC              | 2,733     | 3,863     | 6,209     | 2,659                     |
| BPC              | 5,085     | 7,432     | 8,039     | 3,102                     |
| Dividend         |           |           |           |                           |
| IOC              | 1,602     | 3,399     | 10,545    |                           |
| HPC              | 830       | 1,456     | 3,478     |                           |
| BPC              | 1,229     | 2,784     | 5,640     |                           |

Note: figures from 2016-17 onwards are based on IND-AS

- (f): The  Free  on  Board  (FOB)  prices  of  Petrol,  Diesel  and  LPG  in  international market  are  given  below.  The  respective  selling  price  in  Indian  market  during  last three years is given at Annexure.

| Year                                | Petrol   | Diesel   | LPG    |
|-------------------------------------|----------|----------|--------|
|                                     | $/BBL    | $/BBL    | $/MT   |
| 2014-15                             | 95.45    | 96.64    | 683.87 |
| 2015-16                             | 61.72    | 55.02    | 394.71 |
| 2016-17                             | 58.10    | 56.59    | 393.31 |
| 2017-18 (till 30 th November, 2017) | 64.49    | 63.95    | 461.73 |

x-x-x-x-x

## Annexure

Annexure referred to in reply to part (f)) of the Lok Sabha Unstarred Question No. 445 asked by Shri Arvind Sawant, Shri Sanjay Dhotre, Shrimati Bhavana Pundalikrao Gawali Patil, Shri  Rahul  Shewale,    Shri  Sankar  Prasad  Datta,  Shri  Dushyant  Chautala  and  Shri Bhartruhari Mahtab to be answered on 18 th December, 2017 regarding 'Fixing Of Prices Of Petroleum Products'.

| Date       | Petrol      | Diesel      | Domestic LPG      | Domestic LPG      |
|------------|-------------|-------------|-------------------|-------------------|
|            |             |             | Subsidized        | Non- Subsidized   |
|            | (Rs./litre) | (Rs./litre) | (Rs./14.2 KGCyl.) | (Rs./14.2 KGCyl.) |
| 01.04.2014 | 72.26       | 55.49       | 414.00            | 980.50            |
| 16.04.2014 | 71.41       |             |                   |                   |
| 01.05.2014 |             |             |                   | 928.50            |
| 16.05.2014 |             | 56.71       |                   |                   |
| 01.06.2014 |             | 57.28       |                   | 905.00            |
| 07.06.2014 | 71.51       |             |                   |                   |
| 25.06.2014 | 71.56       |             |                   | 906.00            |
| 01.07.2014 | 73.60       | 57.84       |                   | 922.50            |
| 01.08.2014 | 72.51       | 58.40       |                   | 920.00            |
| 16.08.2014 | 70.33       |             |                   |                   |
| 31.08.2014 | 68.51       | 58.97       |                   |                   |
| 01.09.2014 |             |             |                   | 901.00            |
| 01.10.2014 | 67.86       |             |                   | 880.00            |
| 15.10.2014 | 66.65       |             |                   |                   |
| 19.10.2014 |             | 55.60       |                   |                   |
| 23.10.2014 |             |             | 417.00            | 883.50            |
| 01.11.2014 | 64.24       | 53.35       |                   | 865.00            |
| 01.12.2014 | 63.33       | 52.51       |                   | 752.00            |
| 16.12.2014 | 61.33       | 50.51       |                   |                   |
| 01.01.2015 |             |             |                   | 708.50            |
| 17.01.2015 | 58.91       | 48.26       |                   |                   |
| 01.02.2015 |             |             |                   | 605.00            |
| 04.02.2015 | 56.49       | 46.01       |                   |                   |
| 16.02.2015 | 57.31       | 46.62       |                   |                   |
| 01.03.2015 | 60.49       | 49.71       |                   | 610.00            |

|            |             |             | Domestic LPG      | Domestic LPG                       |
|------------|-------------|-------------|-------------------|------------------------------------|
| D at e     | Petrol      | Diesel      | RSP               | Effective cost after DBTL Subsidy# |
|            | (Rs./litre) | (Rs./litre) | (Rs./14.2 KGCyl.) | (Rs./14.2 KGCyl.)                  |
| 01.04.2015 | 60.00       | 48.50       | 621.00            | 417.82                             |
| 16.04.2015 | 59.20       | 47.20       |                   |                                    |
| 01.05.2015 | 63.16       | 49.57       | 616.00            |                                    |
| 16.05.2015 | 66.29       | 52.28       |                   |                                    |
| 01.06.2015 |             |             | 626.50            |                                    |
| 16.06.2015 | 66.93       | 50.93       |                   |                                    |
| 01.07.2015 | 66.62       | 50.22       | 608.50            |                                    |
| 16.07.2015 | 66.90       | 49.72       |                   |                                    |
| 01.08.2015 | 64.47       | 46.12       | 585.00            |                                    |
| 15.08.2015 | 63.20       | 44.95       |                   |                                    |
| 01.09.2015 | 61.20       | 44.45       | 559.50            |                                    |
| 01.10.2015 |             | 44.95       | 517.50            |                                    |
| 16.10.2015 |             | 45.90       |                   |                                    |
| 01.11.2015 | 60.70       | 45.93       | 545.00            |                                    |
| 16.11.2015 | 61.06       | 46.80       |                   |                                    |
| 01.12.2015 | 60.48       | 46.55       | 606.50            |                                    |
| 09.12.2015 |             |             | 608.00            | 419.26                             |
| 16.12.2015 | 59.98       | 46.09       |                   |                                    |
| 01.01.2016 | 59.35       | 45.03       | 657.50            | 419.33                             |
| 02.01.2016 | 59.35       | 45.03       |                   |                                    |
| 16.01.2016 | 59.03       | 44.18       |                   |                                    |
| 19.01.2016 | 59.99       | 44.71       |                   |                                    |
| 31.01.2016 | 59.99       | 44.71       |                   |                                    |
| 01.02.2016 | 59.95       | 44.68       | 575.00            | 419.22                             |
| 18.02.2016 | 59.63       | 44.96       |                   |                                    |
| 01.03.2016 | 56.61       | 46.43       | 513.50            | 419.13                             |
| 04.03.2016 |             |             |                   |                                    |
| 17.03.2016 | 59.68       | 48.33       |                   |                                    |
| 01.04.2016 |             |             | 509.50            |                                    |
| 05.04.2016 | 61.87       | 49.31       |                   |                                    |
| 16.04.2016 | 61.13       | 48.01       |                   |                                    |
| 01.05.2016 | 62.19       | 50.95       | 527.50            | 419.15                             |
| 07.05.2016 |             | 50.41       |                   |                                    |
| 17.05.2016 | 63.02       | 51.67       |                   |                                    |
| 01.06.2016 | 65.60       | 53.93       | 548.50            | 419.18                             |
| 16.06.2016 | 65.65       | 55.19       |                   |                                    |

|                |             |             | Domestic LPG      | Domestic LPG                       |
|----------------|-------------|-------------|-------------------|------------------------------------|
| D at e         | Petrol      | Diesel      | RSP               | Effective cost after DBTL Subsidy# |
|                | (Rs./litre) | (Rs./litre) | (Rs./14.2 KGCyl.) | (Rs./14.2 KGCyl.)                  |
| 01.07.2016     | 64.76       | 54.70       | 537.50            | 421.16                             |
| 16.07.2016     | 62.51       | 54.28       |                   |                                    |
| 01.08.2016     | 61.09       | 52.27       | 487.00            | 423.09                             |
| 16.08.2016     | 60.09       | 50.27       |                   |                                    |
| 01.09.2016     | 63.47       | 52.94       | 466.50            | 425.06                             |
| 16.09.2016     | 64.21       | 52.59       |                   |                                    |
| 01.10.2016     | 64.58       | 52.51       | 490.00            | 427.09                             |
| 05.10.2016     | 64.72       | 52.61       |                   |                                    |
| 16.10.2016     | 66.45       | 55.38       |                   |                                    |
| 28.10.2016     |             |             | 492.00            | 428.59                             |
| 01.11.2016     |             |             | 529.50            | 430.64                             |
| 06.11.2016     | 67.62       | 56.41       |                   |                                    |
| 16.11.2016     | 65.93       | 54.71       |                   |                                    |
| 01.12.2016     | 66.10       | 54.57       | 584.00            | 432.71                             |
| 17.12.2016     | 68.94       | 56.68       |                   |                                    |
| 01.01.2017     |             |             | 585.00            | 434.71                             |
| 02.01.2017     | 70.60       | 57.82       |                   |                                    |
| 16.01.2017     | 71.14       | 59.02       |                   |                                    |
| 01.02.2017     |             |             | 651.50            | 434.80                             |
| 01.03.2017     |             |             | 737.50            | 434.93                             |
| 01.04.2017     | 66.29       | 55.61       | 723.00            | 440.90                             |
| 16.04.2017     | 68.07       | 56.83       |                   |                                    |
| 01.05.2017     | 68.09       | 57.35       | 631.00            | 442.77                             |
| 16.05.2017     | 65.32       | 54.90       |                   |                                    |
| 01.06.2017     | 66.91       | 55.94       | 552.50            | 446.65                             |
| 16.06.2017 (*) | 65.48       | 54.49       |                   |                                    |
| 01.07.2017     | 63.09       | 53.33       | 564.00            | 477.46                             |
| 16.07.2017     | 64.11       | 54.93       |                   |                                    |
| 01.08.2017     | 65.40       | 55.58       | 524.00            | 479.77                             |
| 16.08.2017     | 68.14       | 57.36       |                   |                                    |
| 01.09.2017     | 69.26       | 57.13       | 597.50            | 487.18                             |
| 16.09.2017     | 70.48       | 58.84       |                   |                                    |

|            |             |             | Domestic LPG      | Domestic LPG                       |
|------------|-------------|-------------|-------------------|------------------------------------|
| D at e     | Petrol      | Diesel      | RSP               | Effective cost after DBTL Subsidy# |
|            | (Rs./litre) | (Rs./litre) | (Rs./14.2 KGCyl.) | (Rs./14.2 KGCyl.)                  |
| 01.10.2017 | 70.76       | 58.92       | 649.00            | 491.13                             |
| 16.10.2017 | 68.29       | 56.91       |                   |                                    |
| 01.11.2017 | 69.14       | 57.73       | 742.00            | 495.69                             |
| 16.11.2017 | 69.65       | 58.31       |                   |                                    |
| 01.12.2017 | 69.22       | 58.40       | 747.00            | 495.69                             |

Notes -

Prices of Petrol, Domestic LPG and Diesel are as per IOCL.

(*)After the implementation of daily prices for petrol and diesel effective 16th June, 2017 onwards, the prices as on 1 st and 16 th of each month only are given in the above table.

#  Effective  1st  January,  2015,  Modified  DBTL  scheme  has  been  implemented  in  the  entire  country.  The effective cost to consumer is after DBTL Subsidy.