Lok Sabha Question No. 56 (STARRED), answered on 2017-02-06
Subject: Prices of Petroleum Products
Ministry: PETROLEUM AND NATURAL GAS
Asked by: SUNIL BALIRAM GAIKWAD, C.S. PUTTARAJU

## LOK SABHA

## STARRED QUESTION NO. 56

## TO BE ANSWERED ON 6 TH  FEBRUARY, 2017 PRICES OF PETROLEUM PRODUCTS

## *56. DR. SUNIL BALIRAM GAIKWAD: SHRI C.S. PUTTA RAJU:

## isVªksfy;e vkSj izkÑfrd xSl ea=h

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

- (a) the details of increase/decrease in the price of crude oil in international market during the last two years and the current year and the number of times the price of petroleum products came down/reduced in both domestic and the international market during the said period;
- (b)  the  measures adopted/being adopted by the Government to pass on the benefits of low crude oil prices to the consumers, year-wise;
- (c) the details of the mechanism adopted by the Government to examine the prices of petrol and diesel fixed by various petroleum companies including private companies in conformity with the variation in the international crude oil prices;
- (d) the number of times the prices of petroleum products including petrol, diesel, LPG, CNG, PNG and kerosene increased/ decreased during the said period along with reasons for hike in the  prices  despite  significant  reduction  of  prices  of  crude  oil  in  the  international  market, product-wise; and
- (e)  the  corrective  measures  taken/being  taken  by  the  Government  to  control  production, import and export of various petroleum products in order to check their prices in the country?

## ANSWER )

## isVªksfy;e vkSj izkÑfrd xSl ea=h ( Lora= izHkkj ¼Jh /keZsUnz iz/kku½

MINISTER OF STATE (I/C) IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI DHARMENDRA PRADHAN)

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(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. 56 asked by Dr. Sunil Baliram Gaikwad and Shri C.S. Putta Raju to be answered on 6 th February, 2017 regarding 'Prices of Petroleum Products'.

- (a): The  details  of  monthly  average  price  of  Indian  basket  of  crude  oil,  Petrol, Diesel, Kerosene and LPG in the international market during the last two years and the current year are given in Annexure I.
- (b) to (d): Prices  of  Petrol  and  Diesel  have  been  made  market  determined  by  the Government effective 26 th June,  2010  and  19 th October,  2014  respectively.  Since  then,  the prices  of  Petrol  and  Diesel  are  being  revised  by  Public  Sector  Oil  Marketing  Companies (OMCs) in line with the changes in their international  prices  and  other  market  conditions. The element of excise duty which is specific in nature has been increased since November, 2014. Most of the State Governments have also increased VAT on Petrol and Diesel.    After taking into account these factors, Public Sector OMCs have passed on major portion of the decrease in price to the consumers of Petrol and Diesel. Private  oil  companies decide the prices of Petrol and Diesel being sold from the Retail outlets run by them. The Government continues  to  modulate  the  effective  price  to  consumer  for  Subsidized  Domestic  LPG  and Retail Selling Price (RSP) of PDS Kerosene.

The number of times basic prices of Petrol,  Diesel,  LPG  and  Kerosene  are  revised during the last two years and current year are given below:

| Increase/decrease in basic prices   | Petrol   | Diesel   | LPG        | LPG              | PDS Kerosene   |
|-------------------------------------|----------|----------|------------|------------------|----------------|
|                                     |          |          | Subsidized | Non - Subsidized |                |
| Increase                            | 23       | 24       | 07         | 13               | 13             |
| Decrease                            | 31       | 27       | -          | 19               | -              |

Further, the maximum retail price of Compressed Natural Gas (CNG) is fixed by the concerned City Gas Distributions (CGD) entity as provided under the Petroleum and Natural Gas  Regulatory  Board  (PNGRB)  Act,  2006.    The  prices  of  CNG  vary  from  city  to  city depending upon the basic cost of Natural Gas, transportation cost and local taxes and levies.

- (e): Petroleum  product,  except  PDS  Kerosene  and  Subsidized  Domestic  LPG,  are deregulated products and their prices are market determined.  Further, the refining capacity is not only sufficient for domestic consumption (except LPG) but also leaves surplus for export of petroleum products. Since, 2001-02, India is a net exporter of petroleum products.

Annexure referred to in reply  to  part  (a)  of  the  Lok  Sabha  Starred  Question  No.  56 asked by Dr. Sunil Baliram Gaikwad and Shri C.S. Putta Raju to be answered on 6 th February, 2017 regarding 'Prices of Petroleum Products'.

## Monthly  average  price  of  Indian  basket  of  crude  oil,  petrol and  diesel in the international market.

| Months   | Indian Basket   | Petrol   | Diesel   | Kerosene   | LPG    |
|----------|-----------------|----------|----------|------------|--------|
|          | ($/BBL)         | ($/BBL)  | ($/BBL)  | ($/BBL)    | ($/MT) |
| Apr-14   | 105.56          | 117.64   | 120.50   | 118.30     | 815.00 |
| May-14   | 106.85          | 117.96   | 119.63   | 117.32     | 819.00 |
| Jun-14   | 109.05          | 120.46   | 118.56   | 118.28     | 835.00 |
| Jul-14   | 106.30          | 119.78   | 116.40   | 116.37     | 832.00 |
| Aug-14   | 101.89          | 109.26   | 113.73   | 113.76     | 792.00 |
| Sep-14   | 96.96           | 108.61   | 108.99   | 109.68     | 769.00 |
| Oct-14   | 86.83           | 98.19    | 97.26    | 98.76      | 753.00 |
| Nov-14   | 77.58           | 87.94    | 90.82    | 93.55      | 604.00 |
| Dec-14   | 61.21           | 69.58    | 74.32    | 75.73      | 562.00 |
| Jan-15   | 46.59           | 54.66    | 59.82    | 60.98      | 452.00 |
| Feb-15   | 56.43           | 67.06    | 68.55    | 70.81      | 468.00 |
| Mar-15   | 55.18           | 70.34    | 67.74    | 67.18      | 476.00 |
| Apr-15   | 59.07           | 73.07    | 69.66    | 69.51      | 466.00 |
| May-15   | 63.82           | 81.10    | 75.15    | 74.98      | 471.00 |
| Jun-15   | 61.75           | 81.02    | 71.44    | 71.45      | 426.00 |
| Jul-15   | 56.30           | 72.52    | 61.29    | 62.23      | 413.00 |
| Aug-15   | 47.33           | 61.95    | 53.64    | 53.79      | 386.00 |
| Sep-15   | 46.10           | 61.59    | 56.93    | 56.60      | 333.00 |
| Oct-15   | 46.68           | 60.55    | 57.13    | 57.40      | 363.00 |
| Nov-15   | 42.50           | 56.42    | 55.40    | 55.51      | 419.00 |
| Dec-15   | 35.68           | 52.84    | 44.41    | 45.36      | 469.00 |
| Jan-16   | 28.08           | 47.10    | 33.85    | 35.73      | 372.00 |
| Feb-16   | 30.53           | 41.40    | 36.65    | 39.31      | 303.00 |
| Mar-16   | 36.42           | 49.62    | 43.52    | 45.50      | 308.00 |
| Apr-16   | 39.88           | 51.50    | 46.34    | 47.89      | 338.00 |
| May-16   | 45.01           | 56.02    | 53.07    | 53.49      | 358.00 |
| Jun-16   | 46.96           | 56.52    | 56.45    | 56.70      | 351.00 |
| Jul-16   | 43.52           | 49.47    | 52.51    | 52.72      | 304.00 |
| Aug-16   | 44.38           | 51.57    | 51.54    | 51.70      | 288.00 |
| Sep-16   | 44.48           | 55.43    | 53.03    | 53.54      | 310.00 |
| Oct-16   | 49.25           | 60.08    | 59.70    | 59.56      | 358.00 |
| Nov-16   | 44.46           | 56.49    | 55.49    | 55.29      | 420.00 |
| Dec -16  | 52.74           | 64.32    | 61.32    | 62.63      | 404.00 |
| Jan-17   | 54.08           | 66.78    | 63.50    | 63.59      | 471.00 |