Lok Sabha Question No. 269 (STARRED), answered on 2018-08-06
Subject: Price of Petroleum Products
Ministry: PETROLEUM AND NATURAL GAS
Asked by: MD. BADARIDDOZA KHAN, RAMESH CHANDER KAUSHIK

## LOK SABHA STARRED QUESTION NO. 269 TO BE ANSWERED ON 6 TH  AUGUST, 2018

## Price of Petroleum Products

## *269.   SHRI MD. BADARUDDOZA KHAN: SHRI RAMESH CHANDER KAUSHIK:

पेट्रोल ियम और प्राक ृ तिक गैस मंत्री

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

(a) whether the price of petroleum products is increasing day-by-day across the country, if so, the details thereof and the reasons therefor along with the steps being taken to stabilise these prices;

(b) whether decontrol of petroleum products is practised only when the price in international market  goes  up  and  the  Government  controls  the  prices  of  petroleum  products  when  their price comes down in international market, if so, the details thereof along with the reaction of the Government thereto;

(c)  whether the Government proposes to revisit the deregulation of determining fuel prices and if so, the details thereof;

(d) whether the Organisation of Petroleum Exporting Countries has proposed to increase the production of crude oil which might help/lead to decrease in the prices of petrol and diesel in the country and if so, the details thereof; and

(e)  the  fresh  measures  taken/being taken by the Government to curtail increasing prices of petroleum products including petrol and diesel in view of the sanction imposed on Iran by the United States of America recently and provide relief to citizens of the country along with the time by which the prices are likely to be checked?

## ANSWER

## पेट्रोल ियम और प्राक ृ तिक गैस मंत्री (श्री धमेन्द्र प्रधान)

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

(a) to (e) A statement is laid on the Table of the House.

## Statement referred to in reply to parts (a) to (e) of the Lok Sabha Starred Question No. 269 asked by Shri MD. Badaruddoza Khan and Shri Ramesh Chander Kaushik to be answered on 6 th August, 2018 regarding 'Price of Petroleum Products'.

- (a) to (c) Prices of petrol and diesel have been made market-determined by the Government with effect from 26.06.2010 and 19.10.2014 respectively. Since then, the Public Sector Oil Marketing Companies (OMCs) take appropriate decision on pricing of petrol  and  diesel  in  line  with  international  product  prices  and  other  market conditions.  The  OMCs  have  not  only  increased  but  also  decreased  the  prices accordingly.    Public  Sector  OMCs  have  implemented  daily  revision  of  retail selling price (RSP) of petrol and diesel in the entire country with effect from 16 th June,  2017.  Daily  pricing  has  been  introduced  to  bring  more  transparency  and efficiency in pricing to benefit consumers.

To  reduce  the  prices  of  petrol  and  diesel  and  give  relief  to  the  consumers,  the Central Government had reduced the Central excise duty on petrol and diesel by ` 2 per litre with effect from 4 th October, 2017.  The Central Government also requested  State  Governments  to  reduce  VAT  imposed  by  them  on  petrol  and diesel. Five State Governments and one Union Territory have reduced the VAT on petrol and diesel.

The  Government  continues  to  modulate  the  effective  price  to  consumer  for Subsidized Domestic LPG and RSP of PDS Kerosene.

- (d) The crude oil production by major global producers depends on several factors, including demand and supply, price of crude oil in global market and geo-political situations.    According  to  press  release  issued  by  OPEC  on  22 nd June,  2018,  its member countries  have  agreed  to  reduce  production  cut  conformity  level  from 152% to 100% thereby increasing crude oil output.
- (e) Indian refineries import crude oil from diverse sources including Iran, depending on  technical  and  commercial  considerations  and  keeping  in  view  the  domestic requirement.    The  price  of  crude  oil  is  determined  by  many  factors,  including quality and demand and supply in the global market.