Lok Sabha Question No. 2951 (UNSTARRED), answered on 2017-03-20
Subject: Prices of Petroleum Products
Ministry: PETROLEUM AND NATURAL GAS
Asked by: ANANT KUMAR DATTATREYA HEGDE, FAIZAL P.P. MOHAMMED

## LOK SABHA UNSTARRED QUESTION NO. 2951 TO BE ANSWERED ON 20 TH  MARCH, 2017

## PRICES OF PETROLEUM PRODUCTS

## †2951. SHRI ANANTKUMAR HEGDE: MOHAMMED FAIZAL:

## isVªksfy;e vkSj izkÑfrd xSl ea=h

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

- (a) whether the price of crude oil has been slashed by 60 per cent and the prices of petrol and diesel and other petroleum products in metropolitan cities decreased only 5 to 9 per cent;

(b)  if  so,  the  details  thereof  along  with  the  prices  of  petrol  and  diesel  increased/  decreased during the last two years and the current year and the reasons for not passing on the benefits of lower crude oil prices in the international market to the consumers; and

- (c) whether the Government has any plan to stop subsidy for petroleum products and if so, the details thereof?

## ANSWER

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

(a) & (b): The price of petroleum products are linked to the price of respective products in  the  international  market.  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 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.

The details of increase/decrease in prices of Indian Basket Crude Oil, Petrol, Diesel, PDS SKO and Domestic LPG in the last two years and current year are given below:

| D at e        | Crude Oil (Indian Basket)   | Petrol      | Diesel      | PDS SKO     | Domestic LPG Subsidized/ Effective cost after DBTL Subsidy#   |
|---------------|-----------------------------|-------------|-------------|-------------|---------------------------------------------------------------|
|               | ($/bbl.)                    | (Rs./litre) | (Rs./litre) | (Rs./litre) | (Rs./14.2 KGCyl.)                                             |
| 01.04.2014    | 104.56                      | 72.26       | 55.49       | 14.96       | 414.00                                                        |
| 01.04.2015    | 53.64                       | 60.00       | 48.50       | 15.24*      | 417.82 #                                                      |
| 01.04.2016    | 36.58                       | 59.68       | 48.33       | 15.42       | 419.13                                                        |
| Current price | 54.85                       | 71.14       | 59.02       | 18.77       | 434.93                                                        |

*since there is 'Nil' allocation of PDS Kerosene in Delhi currently, RSP of PDS Kerosene 1.11.2014 onwards is at Mumbai

#  effective  1 st January 2015,  Modified  DBTL scheme has been implemented in entire country. The effective cost to consumer is after DBTL subsidy.

- (c): As mentioned above, prices of Petrol and Diesel have been made market determined. The  Government  continues  to  modulate  the  effective  cost  to  consumer  for  Subsidized Domestic  LPG  and  retail  selling  price  of  PDS  Kerosene  and  has  taken  steps  for  better targeting so that only needy and poor households avail subsidy.

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