Lok Sabha Question No. 372 (UNSTARRED), answered on 2019-06-24
Subject: Price of Fuel
Ministry: PETROLEUM AND NATURAL GAS
Asked by: N.K. Premachandran, Vinayak Bhaurao Raut

## LOK SABHA UNSTARRED QUESTION NO. 372 TO BE ANSWERED ON 24 TH  JUNE, 2019

## Price of Fuel

## 372. SHRI  N.K. PREMACHANDRAN: SHRI  VINAYAK  RAUT:

## पेट्रोल ियम और प्राक ृ तिक गैस मंत्री

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

(a) whether it has come to the notice of the Government that price hike of fuel is one of the major reason for price hike in essential commodities;

(b)  if  so,  the  details  thereof  along  with  the  action  taken  by  the  Government  to  control  the price hike of petroleum products;

(c) whether the Government proposes legislation to control the regulatory authority to stop the  hike  in  price  of  petroleum  products  and  fuels,  if  so,  the  details  thereof  and  the  action taken thereon so far;

(d) whether the prices of petrol and diesel is likely to increase due to 12 per cent rise in the prices of crude oil during the current year which is likely to have a considerable impact on consumers pocket; and

(e)  if  so,  the  details  thereof  along  with  the  measures  being  taken  by  the  Government  to reduce/control the prices of petrol, diesel and other petroleum products so as to reduce the financial burden on the consumers?

## ANSWER

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

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

- (a) to (e) Prices of petrol and diesel have been made market-determined by the Government with effect from 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 of PDS Kerosene. 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.

The weightage of petrol, diesel, LPG and kerosene in the WPI index is 1.60%, 3.10%, 0.64% and 0.19% respectively.

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.