Lok Sabha Question No. 5722 (UNSTARRED), answered on 2018-04-02
Subject: Cost of Domestic LPG
Ministry: PETROLEUM AND NATURAL GAS
Asked by: S.P. MUDDAHANUMEGOWDA, C.S. PUTTARAJU

## LOK SABHA UNSTARRED QUESTION NO.5722 TO BE ANSWERED ON 2 ND  APRIL, 2018

## COST OF DOMESTIC LPG

5722.   SHRI S.P. MUDDAHANUME GOWDA: SHRI C.S. PUTTA RAJU:

पेट्रोल ियम और प्राक ृ तिक गैस मंत्री

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

- (a) the present production cost per domestic cooking gas cylinder in the country;
- (b) the amount of subsidy being paid by the Government on each cylinder and total annual subsidy for all cooking gas cylinders distributed during the last three years and the current year;
- (c) whether the Government proposes to withdraw entire subsidy on gas, diesel and petrol in the country; and
- (d) if so, the details thereof and the reasons therefor?

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

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

- (a): Refining of crude oil is a process industry, where crude oil constitutes around 90% of the  total  cost.  Crude  oil  is  processed  through  several  processing  units.  Each  of  these  units produces  intermediate  products  streams,  which  require  further  reprocessing  and  blending. Refined  products  include  MS,  HSD,  Kerosene,  LPG,  Naphtha,  ATF  etc.  It  is  difficult  to apportion the total cost amongst individual refined products from a refinery.
- (b): Current subsidy/under recovery on sale of Subsidized domestic LPG  is Rs. 195.91/14.2  Kg  cylinder.  The  year-wise  subsidy/  under-recovery  on  Subsidized  Domestic LPG for the last three years and the current year is given as under:

(Rs. Crore)

| Particular                                                                                                                                            | 2014-15                                                                                                                                               | 2015-16                                                                                                                                               | 2016-17                                                                                                                                               | Apr-Dec'17                                                                                                                                            |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
| Domestic LPG #                                                                                                                                        | 40569                                                                                                                                                 | 16074                                                                                                                                                 | 14566                                                                                                                                                 | 14,172                                                                                                                                                |
| # Includes Subsidy under 'PDS Kerosene and Domestic LPG Subsidy Scheme, 2002' & 'Freight Subsidy (For Far-Flung Areas) Scheme, 2002' on payment basis | # Includes Subsidy under 'PDS Kerosene and Domestic LPG Subsidy Scheme, 2002' & 'Freight Subsidy (For Far-Flung Areas) Scheme, 2002' on payment basis | # Includes Subsidy under 'PDS Kerosene and Domestic LPG Subsidy Scheme, 2002' & 'Freight Subsidy (For Far-Flung Areas) Scheme, 2002' on payment basis | # Includes Subsidy under 'PDS Kerosene and Domestic LPG Subsidy Scheme, 2002' & 'Freight Subsidy (For Far-Flung Areas) Scheme, 2002' on payment basis | # Includes Subsidy under 'PDS Kerosene and Domestic LPG Subsidy Scheme, 2002' & 'Freight Subsidy (For Far-Flung Areas) Scheme, 2002' on payment basis |

- (c)  &  (d):      The  prices  of  Petrol  and  Diesel  have  been  made  market  determined  by  the Government  effective  26th June,  2010  and  19 th October,  2014  respectively  and  since  then their  prices  are  being  decided  by  the  OMCs  in  line  with  the  changes  in  the  international market  prices.  The  Government  continues  to  modulate  the  effective  price  to  consumer  for Subsidized Domestic LPG.