Lok Sabha Question No. 1494 (UNSTARRED), answered on 2018-03-05
Subject: Price of Petroleum Products
Ministry: PETROLEUM AND NATURAL GAS
Asked by: RAMA KISHORE SINGH, SADASHIV KISAN LOKHANDE

## LOK SABHA UNSTARRED QUESTION NO. 1494 TO BE ANSWERED ON 5 TH  MARCH, 2018

## PRICE OF PETROLEUM PRODUCTS

## †1494. SHRI RAMA KISHORE SINGH: SHRI SADASHIV LOKHANDE:

## पेट्रोल ियम और प्राक ृ तिक गैस मंत्री

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

(a) whether the prices of petroleum products particularly petrol, diesel and LPG is higher in the country as compared to other countries;

- (b) if so, the details thereof;

(c) whether the prices of petrol, diesel, LPG and other petroleum products reported a sharp rise during the last one year and the current year despite giving up LPG subsidy by a large number of consumers in the country;

(d) if so, the details thereof along with any proposal/steps taken to reduce the prices of these petroleum products in a time bound manner;

(e) whether the benefit of price reduction is fully passed on to the consumers in the country and if so, the details thereof along with the reasons for not passing the benefits of lower crude oil prices in the international market to the consumers; and

(f)  the  details  of  the  trade  capacity price determination process and the manner in which it affects the Indian consumers i.e. whether it is beneficial or harmful?

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

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

(a)  &  (b):  Prices  of  Petrol  and  Diesel  have  been  made  market-determined  effective 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  Government  continues  to  modulate  the  effective  price  to  consumer  for  Subsidized Domestic LPG and Retail Selling Price (RSP) of PDS Kerosene.

The prices of petroleum products in the country are benchmarked to international product prices. Generally, the prices of sensitive petroleum products in the country are higher/lower than  other  countries  due  to  various  factors,  including  prevailing  tax  regime  and  subsidy compensations by the respective Governments.

(c) to (e):    Retail Selling Price (RSP) of Petrol and Diesel in the country are linked to their respective  international  prices  instead  of  that  of  crude  oil.  The  details  of  prices  of  petrol, diesel,  PDS  Kerosene  and  Domestic  LPG  during  the  last  one  year  and  the  current  year  is given as Annexure.

The Central Government reduced the Central Excise Duty on Petrol and Diesel by Rs.2 per litre effective from 4th October, 2017.  The measure was aimed to reduce the retail selling prices of Petrol & Diesel and give relief to the consumers.

The Central Government also requested the State Governments to make reduction in VAT imposed by them on Petrol and Diesel so as to give more relief to the consumers. 4 State Governments and 1 Union Territory have reduced the VAT on Petrol and Diesel.

- (f):  Trade Parity Price (TPP) of Petrol and Diesel is the weighted average of Import Parity Price (80%) and Export Parity Price (20%). As compared to Import Parity Pricing, TPP is beneficial to consumers.

x-x-x-x-x

Annexure Annexure referred to in reply to parts (c) to (e) of the Lok Sabha Unstarred Question No.1494  asked  by  Shri  Rama  Kishore  Singh  and  Shri  Sadashiv  Lokhande  to  be answered on 5 th March, 2018 regarding 'Price of Petroleum Products'.

| Date                  | Petrol                         | Diesel                         | PDS SKO     | Domestic LPG                                | Domestic LPG                                |
|-----------------------|--------------------------------|--------------------------------|-------------|---------------------------------------------|---------------------------------------------|
|                       | (Rs./litre)                    | (Rs./litre)                    | (Rs./litre) | Subsidized Non-subsidized (Rs./14.2 KGCyl.) | Subsidized Non-subsidized (Rs./14.2 KGCyl.) |
| As on 01.04.2016      | 59.68                          | 48.33                          | 15.42       | 419.13                                      | 509.50                                      |
| 05.04.2016            | 61.87                          | 49.31                          |             |                                             |                                             |
| 16.04.2016            | 61.13                          | 48.01                          |             |                                             |                                             |
| 25.04.2016            |                                |                                | 15.36       |                                             |                                             |
| 01.05.2016            | 62.19                          | 50.95                          |             | 419.15                                      | 527.50                                      |
| 07.05.2016            |                                | 50.41                          |             |                                             |                                             |
| 17.05.2016            | 63.02                          | 51.67                          |             |                                             |                                             |
| 01.06.2016            | 65.60                          | 53.93                          |             | 419.18                                      | 548.50                                      |
| 03.06.2016            |                                |                                | 15.02       |                                             |                                             |
| 16.06.2016            | 65.65                          | 55.19                          |             |                                             |                                             |
| 01.07.2016            | 64.76                          | 54.70                          |             | 421.16                                      | 537.50                                      |
| 07.07.2016            |                                |                                | 15.27       |                                             |                                             |
| 16.07.2016            | 62.51                          | 54.28                          |             |                                             |                                             |
| 01.08.2016            | 61.09                          | 52.27                          | 15.53       | 423.09                                      | 487.00                                      |
| 16.08.2016            | 60.09                          | 50.27                          | 15.68       |                                             |                                             |
| 01.09.2016            | 63.47                          | 52.94                          | 15.94       | 425.06                                      | 466.50                                      |
| 16.09.2016            | 64.21                          | 52.59                          | 16.19       |                                             |                                             |
| 21.09.2016            |                                |                                | 16.40       |                                             |                                             |
| 01.10.2016            | 64.58                          | 52.51                          | 16.66       | 427.09                                      | 490.00                                      |
| 05.10.2016            | 64.72                          | 52.61                          |             |                                             |                                             |
| 16.10.2016            | 66.45                          | 55.38                          | 16.92       |                                             |                                             |
| 28.10.2016            |                                |                                |             | 428.59                                      | 492.00                                      |
| 01.11.2016            |                                |                                | 17.17       | 430.64                                      | 529.50                                      |
| 06.11.2016            | 67.62                          | 56.41                          |             |                                             |                                             |
| 16.11.2016            | 65.93                          | 54.71                          | 17.51       |                                             |                                             |
| 01.12.2016            | 66.10                          | 54.57                          | 17.76       | 432.71                                      | 584.00                                      |
| 16.12.2016            |                                |                                | 18.02       |                                             |                                             |
| 17.12.2016            | 68.94                          | 56.68                          |             |                                             |                                             |
| 01.01.2017            |                                |                                | 18.28       | 434.71                                      | 585.00                                      |
| 02.01.2017            | 70.60                          | 57.82                          |             |                                             |                                             |
|                       | 71.14                          |                                | 18.54       |                                             |                                             |
| 16.01.2017            |                                | 59.02                          |             |                                             |                                             |
| 01.02.2017            |                                |                                | 18.77       | 434.80                                      | 651.50                                      |
| 01.03.2017            |                                |                                |             | 434.93                                      | 737.50                                      |
| 01.04.2017            | 66.29                          | 55.61                          |             | 440.90                                      | 723.00                                      |
| 07.04.2017            |                                |                                | 19.03       |                                             |                                             |
| 16.04.2017            | 68.07                          | 56.83                          | 19.29       |                                             |                                             |
| 01.05.2017            | 68.09                          | 57.35                          | 19.65       | 442.77                                      | 631.00                                      |
| 16.05.2017            | 65.32                          | 54.90                          | 19.91       |                                             |                                             |
| 01.06.2017            | 66.91                          | 55.94                          | 20.17       | 446.65                                      | 552.50                                      |
| 16.06.2017            | 65.48                          | 54.49                          | 20.43       |                                             |                                             |
| 01.07.2017            |                                |                                | 21.09       | 477.46                                      | 564.00                                      |
| 11.07.2017            |                                |                                | 21.22       |                                             |                                             |
| 16.07.2017            |                                |                                | 21.48       |                                             |                                             |
| 01.08.2017            | **Since 16.6.2017, Daily price | **Since 16.6.2017, Daily price | 21.74       | 479.77                                      | 524.00                                      |
| 16.08.2017            | revision for petrol/diesel     | has been                       | 22.00       |                                             |                                             |
| 01.09.2017            | implemented.                   | implemented.                   | 22.27       | 487.18                                      | 597.50                                      |
| 16.09.2017            |                                |                                | 22.53       |                                             |                                             |
| 20.09.2017            |                                |                                |             |                                             |                                             |
|                       |                                |                                | 22.76       |                                             |                                             |
| 30.09.2017            |                                |                                |             | 488.68                                      | 599.00                                      |
| 01.10.2017            |                                |                                |             | 491.13                                      | 649.00                                      |
| 16.10.2017            |                                |                                |             |                                             |                                             |
| 01.11.2017            |                                |                                |             | 495.69                                      | 742.00                                      |
| 15.11.2017 01.12.2017 |                                |                                | 22.12       |                                             |                                             |
|                       |                                |                                |             | 495.69                                      | 747.00                                      |
| 16.12.2017            |                                |                                |             |                                             |                                             |
| 01.01.2018            |                                |                                | 22.39       | 495.64                                      | 741.00                                      |
| 16.01.2018            |                                |                                | 22.65       |                                             |                                             |
| 01.02.2018 16.02.2018 |                                |                                | 22.91 23.17 | 495.63                                      | 736.00                                      |

Notes -

* RSP of PDS kerosene is as applicable at Mumbai.

# The subsidized price for Domestic LPG is after DBTL Subsidy at Delhi.

**The Prices of petrol and diesel as on 22.02.2018 are Rs. 71.53/ litre and Rs. 62.17/litre respectively. (as per IOCL at Delhi)