Lok Sabha Question No. 4039 (UNSTARRED), answered on 2017-03-27
Subject: Prices of Petroleum Products
Ministry: PETROLEUM AND NATURAL GAS
Asked by: RAOSAHEB PATIL DANVE, B.N. CHANDRAPPA, KIRIT SOMAIYA, K. KAMARAAJ, ASADUDDIN OWAISI, RAYAPATI SAMBASIVA RAO, TAMRADHWAJ SAHU, P. KUMAR

## LOK SABHA UNSTARRED QUESTION NO.4039

## TO BE ANSWERED ON 27 TH  MARCH, 2017

## PRICES OF PETROLEUM PRODUCTS

## †4039. SHRI RAOSAHEB DANVE PATIL:

SHRI B.N. CHANDRAPPA:

DR. KIRIT SOMAIYA:

DR. K. KAMARAJ:

SHRI ASADUDDIN OWAISI:

SHRI RAYAPATI SAMBASIVA RAO:

SHRI TAMRADHWAJ SAHU:

SHRI P. KUMAR:

isVªksfy;e vkSj izkÑfrd xSl ea=h

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

- (a) the prices of petroleum products such as petrol, diesel, CNG, PNG, LPG, Kerosene and ATF including production/ raw material/refining cost along with taxes/ duties imposed and subsidy  provided  by  the  State  and  Union  Government  separately  for  making  them  usable along with profit/loss during the last two years and the current year, product/State/UT-wise;
- (b)  whether  the  production  cost  of  various  petroleum  products  is  more  in  public  sector refineries  as  compared  to  private  sector  refineries  and  if  so,  the  reasons  therefor  and  the corrective steps taken in this regard;
- (c) the reasons for separate taxes being levied on petroleum products by each State resulting in  additional  burden  on  common  man  along  with  the  steps  taken  to  adopt  a  uniform  tax structure for petroleum products across the country, State/UT-wise;
- [ (d) whether the Government has received any requests/representation from petroleum dealers to withdraw/reduction in the prices of petroleum products and if so, the details thereof along with the steps taken in this regard;
- (e) whether the recent increase in the non-subsidised LPG price is likely to affect those who surrendered their LPG subsidy if so, the details thereof along with the steps taken/being taken by the Government in favour of such consumers;
- (f)  the  details  of  study  conducted  about  the  impact  of  the  consistent  increase  in  prices  of petroleum  products  on  poor  and  cascading  effects  on  the  overall  prices  on  essential commodities  and  action  taken  thereon  along  with  details  of  profit/loss  incurred  by  Oil Marketing Companies during the said period; and
- (g) whether the cost of diesel and gasoline are almost the same if so, the details thereof and the reasons therefor?

## 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)

(a) & (b): The prices of Petrol, Diesel, Domestic LPG, ATF and PDS Kerosene during the last two years and the current year is given below:

|                                                 | 01.04.2015   | 01.04.2016   | 01.03.2017   |
|-------------------------------------------------|--------------|--------------|--------------|
| Petrol (Rs./Ltr)                                | 60.00        | 59.68        | 71.14        |
| Diesel (Rs./Ltr)                                | 48.50        | 48.33        | 59.02        |
| Domestic LPG(effective cost after DBTL subsidy) | 417.82       | 419.13       | 434.93       |
| ATF (Rs./KL)                                    | 49,337.68    | 42,157.01    | 54,293.38    |
| PDS Kerosene (Rs./Ltr)                          | 15.24        | 15.42        | 18.77        |

Source: Petroleum Planning & Analysis Cell (PPAC)

Note: Prices of above petroleum products, except PDS Kerosene, are at Delhi. Price of PDS Kerosene is at Mumbai.

Price of CNG/PNG is fixed by the concerned City Gas Distribution (CGD) entity as provided under the Petroleum & Natural Gas Regulatory Board (PNGRB) Act, 2006 and the Government does not regulate the prices of CNG/PNG.

The details of tax/duties levied by State/Central Government during the last two years and current year are given in Annexure I . The details of subsidies incurred on sale of Diesel (upto  18.10.2014),  Subsidized  Domestic  LPG  and  PDS  Kerosene  along  with  profit/loss  to Public Sector  Oil Marketing Companies (OMCs) during the last two years and current year is given as under:-

(Rs. in crore)

| Subsidy                | 2014-15                | 2015-16                | Apr-Dec. 2016          |
|------------------------|------------------------|------------------------|------------------------|
| Subsidy                | 76285                  | 33526                  | 15252                  |
| Profit After Tax (PAT) | Profit After Tax (PAT) | Profit After Tax (PAT) | Profit After Tax (PAT) |
| OMCs                   | 2014-15                | 2015-16                | Apr-Dec. 2016          |
| IOC                    | 5,273                  | 10,399                 | 15,386                 |
| HPC                    | 2,733                  | 3,863                  | 4,390                  |
| BPC                    | 5,085                  | 7,432                  | 6,198                  |
| TOTAL                  | 13,091                 | 21,694                 | 25,973                 |

As  regards  the  production  cost  of  petroleum  products,  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. It is difficult to apportion the total cost amongst individual refined products; hence product-wise costs are not identified separately. Public Sector Refineries have taken projects to improve refinery operations and increase energy efficiency.

- (c): Under the current taxation regime, the Centre and State levy different types of taxes, for e.g. Customs duty, Central Excise duty, State Sales tax/VAT, Entry Tax, Octroi etc. The Goods and Services Tax (GST) is one indirect tax for the whole nation, which  will make India one unified common market. As per the GST Constitutional (Amendment) Act, 2016, all petroleum products and services are covered under the ambit of GST except supplies of crude oil, Petrol, Diesel, ATF and Natural Gas (Excluded Goods).
- (d): The  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 Public  Sector  Oil  Marketing  Companies  (OMCs)  take  appropriate  decision  on  pricing  of Petrol  and  Diesel  in  line  with  their  international  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.
- (e): LPG price in India is based on the Import Parity Price (IPP).   The international price of LPG has increased from US$ 468.95/MT in February, 2017 to US$ 564.82/MT in March, 2017.    Due  to  increase  in  international  prices,  the  Retail  Selling  Price  of  Non-Subsidized Domestic LPG has increased by Rs. 86/cylinder (14.2 kg) in March, 2017. Similarly, there are cases of decrease in prices of Non-Subsidized Cylinder and on 1 st February, 2016 there was a decrease of Rs.82.50/ cylinder (as per IOCL in Delhi).
- (f): The product wise impact on inflation due to increase in Retail Selling Prices (RSP) are given below:

| Product      | Increase in RSP   | Increase in Inflation (WPI Index)   |
|--------------|-------------------|-------------------------------------|
| Petrol       | Rs. 1/litre       | 0.02%                               |
| Diesel       | Rs. 1/litre       | 0.10%                               |
| PDS Kerosene | Rs. 1/litre       | 0.05%                               |
| Domestic LPG | Rs. 10/cylinder   | 0.02%                               |

Source: Petroleum PAC

The details of profit/loss to Public Sector OMCs has been given in reply to parts (a) & (b) above.

- (g): As has been given in reply to parts (a) & (b) above, it is difficult to apportion the total cost  amongst  individual  refined  products;  hence  product-wise  costs  are  not  identified separately. However, the details of international prices of Petrol and Diesel are given below:

| Average International Price (USD/bbl)   |   Petrol |   Diesel |
|-----------------------------------------|----------|----------|
| 2014-15                                 |    95.45 |    96.64 |
| 2015-16                                 |    61.72 |    55.02 |
| 2016-17 (up to 21.03.2017)              |    57.99 |    56.49 |

Annexure referred to in reply to part (a) of the Lok Sabha Unstarred Question No.4039 asked by Shri Raosaheb Danve Patil, Shri B.N. Chandrappa, Dr. Kirit Somaiya, Dr. K. Kamaraj,  Shri  Asaduddin  Owaisi,  Shri  Rayapati  Sambasiva  Rao,  Shri  Tamradhwaj Sahu  and  Shri  P.  Kumar  to  be  answered  on  27 th March,  2017  regarding  'Prices  of Petroleum Products'.

## Central Customs Duty rate since 1 st April, 2014

(in %)

| Date           |   Petrol |   Diesel | PDS Kerosene   | Domestic LPG   |
|----------------|----------|----------|----------------|----------------|
| As on 01/04/14 |      2.5 |      2.5 | Nil            | Nil            |

## Central Excise Duty Rates since 1 st April, 2014

| Date           | Petrol   | Diesel   | PDS Kerosene   | Domestic LPG   |
|----------------|----------|----------|----------------|----------------|
| Date           | (Rs/Ltr) | (Rs/Ltr) |                |                |
| As on 01/04/14 | 9.48     | 3.56     | NIL            | NIL            |
| 12/11/14       | 11.02    | 5.11     | NIL            | NIL            |
| 03/12/14       | 13.34    | 6.14     | NIL            | NIL            |
| 02/01/15       | 15.40    | 8.20     | NIL            | NIL            |
| 17/01/15       | 17.46    | 10.26    | NIL            | NIL            |
| 01/03/15       | 17.46    | 10.26    | NIL            | NIL            |
| 07/11/15       | 19.06    | 10.66    | NIL            | NIL            |
| 17/12/15       | 19.36    | 11.83    | NIL            | NIL            |
| 02/01/16       | 19.73    | 13.83    | NIL            | NIL            |
| 16/01/16       | 20.48    | 15.83    | NIL            | NIL            |
| 31/01/16       | 21.48    | 17.33    | NIL            | NIL            |
| 01/03/16       | 21.48    | 17.33    | NIL            | NIL            |

## Statement showing the effective rates of Sales tax/VAT levied by various States/UTs

|                                          | Apr'14     | Apr'15     | Apr'16     | Mar'17      | Apr'14      | Apr'15     | Apr'16     | Mar'17      |
|------------------------------------------|------------|------------|------------|-------------|-------------|------------|------------|-------------|
| State                                    | Petrol (%) | Petrol (%) | Petrol (%) | Petrol (%)  | Diesel (%)  | Diesel (%) | Diesel (%) | Diesel (%)  |
| Andhra Pradesh                           | 31.00      | 39.33      | 39.93      | 38.46       | 22.25       | 31.88      | 32.45      | 30.47       |
| Arunachal Pradesh                        | 20.00      | 20.00      | 20.00      | 20.00       | 12.50       | 12.50      | 12.50      | 12.50       |
| Assam                                    | 27.50      | 27.50      | 27.50      | 29.00       | 16.50       | 16.50      | 16.50      | 20.00       |
| Bihar                                    | 24.50      | 24.50      | 24.50      | 26.00       | 16.00       | 18.00      | 18.00      | 19.00       |
| Chattisgarh                              | 25.00      | 25.00      | 30.40      | 29.68       | 25.00       | 25.00      | 27.49      | 27.02       |
| Delhi                                    | 20.00      | 20.00      | 27.00      | 27.00       | 13.09       | 13.18      | 18.75      | 17.35       |
| Goa                                      | 0.10       | 15.00      | 22.00      | 7.54        | 20.00       | 22.00      | 22.00      | 22.61       |
| Gujarat                                  | 25.46      | 25.46      | 28.96      | 28.96       | 24.63       | 24.63      | 28.96      | 28.96       |
| Haryana                                  | 21.00      | 26.25      | 26.25      | 26.25       | 9.24        | 12.07      | 17.22      | 17.22       |
| Himachal Pradesh                         | 25.00      | 27.00      | 27.00      | 27.00       | 9.60        | 11.50      | 16.00      | 16.00       |
| Jammu &Kashmir                           | 24.93      | 25.90      | 30.28      | 29.49       | 13.98       | 14.25      | 18.38      | 17.94       |
| Jharkhand                                | 20.00      | 24.55      | 35.82      | 29.94       | 18.00       | 24.91      | 25.09      | 24.49       |
| Karnataka                                | 31.25      | 32.30      | 36.50      | 36.50       | 21.43       | 22.48      | 24.95      | 24.95       |
| Kerala                                   | 26.47      | 34.18      | 34.33      | 33.97       | 20.00       | 27.14      | 27.29      | 26.80       |
| Madhya Pradesh                           | 28.27      | 32.30      | 38.99      | 39.75       | 24.23       | 28.26      | 32.05      | 31.31       |
| Maharashtra - Mumbai, Thane& Navi Mumbai | 27.62      | 27.94      | 32.25      | 36.97       | 24.00       | 24.00      | 28.81      | 28.05       |
| Maharashtra (Rest of State)              | 26.60      | 26.93      | 31.34      | 36.13       | 21.00       | 21.00      | 25.82      | 25.06       |
| Manipur                                  | 20.00      | 20.00      | 20.00      | 25.00       | 13.50       | 13.50      | 13.50      | 14.50       |
| Meghalaya                                | 18.49      | 19.26      | 22.24      | 22.44       | 11.73       | 13.77      | 13.77      | 13.77       |
| Mizoram                                  | 20.00      | 20.00      | 20.00      | 20.00       | 12.00       | 12.00      | 12.00      | 12.00       |
| Nagaland                                 | 21.00      | 24.68      | 24.68      | 24.68       | 12.60       | 14.18      | 14.18      | 14.18       |
| Odisha                                   | 19.18      | 24.23      | 27.26      | 27.26       | 19.18       | 24.23      | 27.26      | 27.26       |
| Punjab                                   | 33.06      | 33.52      | 36.61      | 35.81       | 9.62        | 12.38      | 17.65      | 17.20       |
| Rajasthan                                | 26.86      | 32.07      | 33.35      | 32.81       | 17.92       | 24.38      | 26.42      | 25.57       |
| Sikkim                                   | 25.22      | 31.30      | 33.75      | 30.63       | 15.23       | 21.01      | 23.87      | 17.62       |
| Tamil Nadu                               | 27.00      | 27.00      | 27.00      | 34.00       | 21.43       | 21.43      | 21.43      | 25.00       |
| Telangana                                |            | 35.20      | 35.20      | 35.20       |             | 27.00      | 27.00      | 27.00       |
| Tripura                                  | 20.00      | 20.00      | 20.00      | 20.00       | 13.50       | 13.50      | 13.50      | 13.50       |
| Uttarakhand                              | 25.00      | 25.00      | 37.64      | 31.56       | 18.49       | 21.00      | 23.98      | 22.23       |
| Uttar Pradesh                            | 26.55      | 26.80      | 37.23      | 31.17       | 17.23       | 17.48      | 23.85      | 19.31       |
| West Bengal                              | 26.62      | 27.52      | 29.88      | 26.78       | 18.43       | 19.30      | 20.58      | 18.41       |
| Chandigarh                               | 20.02      | 20.02      | 24.77      | 24.77       | 12.52       | 9.70       | 16.43      | 16.43       |
| Dadra &Nagar                             | 20.00      | 20.00      | 20.00      | 20.00       | 15.00       | 15.00      | 15.00      | 15.00       |
| Haveli Daman &Diu                        | 20.00      | 20.00      | 20.00      |             |             | 15.00      | 14.00      | 15.00 15.15 |
| Puducherry                               | 15.00      | 15.00      | 15.00      | 20.00 17.15 | 15.00 14.00 | 14.00      | 15.00      |             |

Note:   Effective tax includes VAT, Cess , entry tax, Additional tax & Surcharge recoverble in price

Statement showing the effective rates of Sales tax/VAT levied by various States/UTs

|                                          | Apr'14      | Apr'15      | Apr'16      | Mar'17      | Apr'14   | Apr'15                | Apr'16   | Mar'17   |
|------------------------------------------|-------------|-------------|-------------|-------------|----------|-----------------------|----------|----------|
| State                                    | SKO PDS (%) | SKO PDS (%) | SKO PDS (%) | SKO PDS (%) | Domestic | Domestic              | LPG (%)  | Domestic |
| Andhra Pradesh                           | 5.00        | 5.00        | 5.00        | 5.00        | 5.00     | 5.00                  | 5.00     | 5.00     |
| Arunachal Pradesh                        | 4.00        | 4.00        | 4.00        | 4.00        | 4.00     | 4.00                  | 4.00     | 4.00     |
| Assam                                    | 2.00        | 2.00        | 2.00        | 2.00        | 0.33     | 0.25                  | 1.25     | 4.00     |
| Bihar                                    | 5.00        | 5.00        | 5.00        | 6.00        | 1.00     | 1.00                  | 1.00     | 1.00     |
| Chattisgarh                              | 4.00        | 4.00        | 4.00        | 4.00        | NIL      | NIL                   | NIL      | NIL      |
| Delhi                                    | 5.00        | 5.00        | 5.00        | 5.00        | NIL      | NIL                   | NIL      | NIL      |
| Goa                                      | 5.00        | 5.00        | 5.00        | 5.02        | NIL      | NIL                   | 0.50     | 0.50     |
| Gujarat                                  | NIL         | NIL         | NIL         | NIL         | NIL      | 5.00                  | 5.00     | 5.00     |
| Haryana                                  | NIL         | NIL         | NIL         | NIL         | NIL      | NIL                   | NIL      | NIL      |
| Himachal Pradesh                         | NIL         | NIL         | NIL         | NIL         | 4.00     | 4.00                  | 4.00     | 4.00     |
| Jammu &Kashmir                           | 5.00        | 5.00        | 5.00        | 5.00        | NIL      | NIL                   | NIL      | NIL      |
| Jharkhand                                | 2.00        | 2.00        | 2.00        | 2.00        | 5.00     | 5.00                  | 3.69     | 2.68     |
| Karnataka                                | 5.50        | 5.50        | 5.50        | 5.50        | 1.00     | 1.00                  | 1.00     | 1.00     |
| Kerala                                   | 5.00        | 5.00        | 5.00        | 5.00        | 5.00     | 5.00                  | 4.11     | 2.86     |
| Madhya Pradesh                           | 5.00        | 5.00        | 5.00        | 5.00        | 7.10     | 7.10                  | 7.10     | 7.10     |
| Maharashtra - Mumbai, Thane& Navi Mumbai | 3.00        | 3.00        | 3.00        | 3.00        | 3.00     | 3.00                  | 3.00     | 3.00     |
| Maharashtra (Rest of State)              | 3.00        | 3.00        | 3.00        | 3.00        | 3.00     | 3.00                  | 3.00     | 3.00     |
| Manipur                                  | NIL         | NIL         | NIL         | NIL         | 5.00     | 5.00                  | 5.00     | 5.00     |
| Meghalaya                                | NIL         | NIL         | NIL         | NIL         | NIL      | NIL                   | NIL      | NIL      |
| Mizoram                                  | NIL         | NIL         | NIL         | NIL         | 4.00     | 4.00                  | 1.79     | 1.79     |
| Nagaland                                 | 5.25        | 5.25        | 5.25        | 5.25        | 4.20     | 5.00                  | 5.00     | 5.25     |
| Odisha                                   | 1.00        | 1.00        | 1.00        | 1.00        | 1.00     | 1.00                  | 1.00     | 1.00     |
| Punjab                                   | 6.05        | 6.05        | 6.05        | 6.05        | 4.40     | 4.40                  | 4.40     | 4.40     |
| Rajasthan                                | NIL         | NIL         | NIL         | NIL         | NIL      | NIL                   | NIL      | NIL      |
| Sikkim                                   | 4.00        | 4.00        | 4.50        | 4.50        | 4.00     | 4.00                  | 4.50     | 4.50     |
| Tamil Nadu                               | 5.00        | 5.00        | 5.00        | 5.00        | NIL      | NIL                   | NIL      | NIL      |
| Telangana                                |             | 5.00        | 5.00        | 5.00        |          | 5.00                  | 5.00     | 5.00     |
| Tripura                                  | NIL         | NIL         | NIL         | NIL         | 1.50     | 1.50                  | 1.50     | 1.50     |
| Uttarakhand                              | NIL         | NIL         | NIL         | NIL         | 5.00     | 5.00                  | 5.00     | 5.00     |
| Uttar Pradesh                            | 4.04        | 4.04        | 4.04        | 4.04        | NIL      | NIL                   | NIL      | NIL      |
| West Bengal                              | NIL         | NIL         | NIL         | NIL         | NIL      | NIL                   | NIL      | NIL      |
| Chandigarh                               | 5.00        | 5.00        | 5.00        | 5.00        | N        | NIL                   | NIL      | NIL      |
| Dadra &Nagar Haveli                      | 4.00        | 4.00        | 4.00        | 5.00        | 4.00     | 4.00                  | 5.00     | 5.00     |
| Daman &Diu                               | 4.00        | 4.00        | 4.00        | 5.00        | 4.00     | 4.00                  | 5.00     | 5.00     |
| Puducherry                               | NIL         | NIL         | NIL         | NIL         | 1.00     | 0.5% for DBTL /1% for | 0.50     | 0.50     |

Note: Effective tax includes VAT, Cess , entry tax, Additional tax & Surcharge recoverable in price