Lok Sabha Question No. 2175 (UNSTARRED), answered on 2018-12-24
Subject: Price of Crude Oil
Ministry: PETROLEUM AND NATURAL GAS
Asked by: KAUSHALENDRA KUMAR, VEENA DEVI, RAJESH RANJAN  (PAPPU  YADAV), RANJEET RANJAN, P. KARUNAKARAN, RODMAL NAGAR, SANKAR PRASAD DATTA, K.R.P. PRABAKARAN

## LOK SABHA UNSTARRED QUESTION NO. 2175 TO BE ANSWERED ON 24 TH  DECEMBER, 2018

## Price of Crude Oil

## †2175. SHRI KAUSHALENDRA KUMAR:

SHRIMATI VEENA DEVI:

SHRI RAJESH RANJAN:

SHRIMATI RANJEET RANJAN:

SHRI P. KARUNAKARAN:

SHRI NAGAR RODMAL:

SHRI SANKAR PRASAD DATTA:

SHRI K.R.P. PRABAKARAN:

## पेट्रोलियम और प्राक ृ लिक गैस मंत्री

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

(a)  whether  the  price  of  crude  oil  in  international  market  has  decreased  rapidly  since  the month of November and if so, the details thereof along with the reasons for not reducing the prices  of  LPG  and  other  petroleum  products  in  proportion  to  the  decrease  in  prices  of international crude oil;

(b) the action taken by the Government against the Oil Marketing Companies which have not reduced the prices of LPG, petrol, diesel and other petroleum products in commensurate to international prices along with details of their profit margin during the said period;

(c)  the  details  of  increase/decrease  in  the  prices  of  petrol,  diesel,  CNG,  LPG,  ATF  and kerosene during the last three years and the current year along with policy adopted to fix the price of petroleum products, product-wise; and

(d)  whether  the  Government proposes to supply cheap petrol, diesel, CNG for commercial vehicles which are on the verge of closure due to high prices of fuel and if so, the modalities worked out by the Government in this regard?

## ANSWER

## पेट्रोलियम और प्राक ृ लिक गैस मंत्री

## (श्री धमेन्द्र प्रधान)

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

- (a) to (d) Prices of Aviation Turbine Fuel (ATF), petrol and diesel have been made marketdetermined  by  the  Government  with  effect  from  1 st April,  2001,  26.06.2010  and 19.10.2014 respectively. Since then, the Public Sector Oil Marketing Companies (OMCs)  take  appropriate  decision  on  pricing  of  these  products  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 Retails Selling Price of PDS Kerosene.  The details of revision in prices of  petroleum  products  are  available  at  Petroleum  Planning  and  Analysis  Cell (PPAC) and Indian Oil Corporation Limited's websites i.e. www.ppac.org.in and www.iocl.com respectively.

The prices of petroleum products are linked to the price of respective products in the  international  market.    Oil  Marketing  Companies  take  a  decision  on  retail selling  price  after  considering  various  aspects  including  international  product prices, exchange rate, tax structure, inland freight and other cost elements.

With  an  aim  to  reduce  the  prices  of  petrol  and  diesel  and  give  relief  to  the consumers, the Central Government reduced the Central Excise duty on petrol and diesel  by ` 2  per  litre  with  effect  from  4 th October,  2017.    The  Central Government  further  reduced  the  Central  Excise  duty  on  petrol  and  diesel  by ` 1.50  per  litre  with  effect  from  5 th October,  2018  and  Public  Sector  OMCs  also reduced ` 1.00  per  litre  to  reduce  the  overall  price  of  petrol  and  diesel. The Central Government also requested the State Governments to make a reduction of ` 2.50 per litre in VAT imposed by them on petrol and diesel. Accordingly, 18 State Governments and 1 Union Territory have reduced VAT on petrol and diesel

As  regards  CNG,  the  price  of  CNG  is  fixed  by  the  respective  CGD  entity authorized in particular Geographical Area (GA) by Petroleum and Natural Gas Regulatory Board (PNGRB). CGD entities determine retail selling price of CNG on  the  basis  of  weighted  average  cost  of  procuring  natural  gas,  operating expenses, currency exchange rate variation and applicable taxes and duties, etc. Variation in any of these factors leads to appropriate change in retail selling price of CNG. The basic price of domestic gas (except PMT supplies) which is being supplied to CGDs for further distribution in CNG (transport) sector is determined as per the New Domestic Gas pricing Guidelines, 2014. The details of domestic gas prices revised half yearly in last 3 years is as under:-

| Period                   |   Domestic Natural Gas price (US$/MMBTU), GCV basis |
|--------------------------|-----------------------------------------------------|
| 01.10.2015 to 31.03.2016 |                                                3.82 |
| 01.04.2016 to 30.09.2016 |                                                3.06 |
| 01.10.2016 to 31.03.2017 |                                                2.5  |
| 01.04.2017 to 30.09.2017 |                                                2.48 |
| 01.10.2017 to 31.03.2018 |                                                2.89 |
| 01.04.2018 to 30.09.2018 |                                                3.06 |
| 01.10.2018 to 31.03.2019 |                                                3.36 |