Lok Sabha Question No. 203 (UNSTARRED), answered on 2020-09-14
Subject: Hike in Prices of Petroleum Products
Ministry: PETROLEUM AND NATURAL GAS
Asked by: K. Muraleedharan, Ramya  Haridas, Abdul Majeed Ariff

## LOK SABHA

## UNSTARRED QUESTION NO.203 TO BE ANSWERED ON 14 TH  SEPTEMBER, 2020

## Hike in Prices of Petroleum Products

## 203. SHRI K. MURALEEDHARAN:

MS. RAMYA HARIDAS:

ADV. A.M. ARIFF:

## पेोलयम और ाक ृतक गैस मंी

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

- (a)  whether  the  Government  is  continuously  increasing  the  prices  of  petroleum  products  even during the COVID-19 pandemic period, if so, the details thereof and the reasons therefor; and
- (b) the details of increase/decrease in petroleum, diesel and domestic LPG prices for the last two years;
- (c) whether the Government intends to reduce the price of the subsidized LPG cylinders, which has been increased from around Rs.494 in July 2019 to Rs.594 in July 2020 in view of global shortfall in the prices of LPG, if not, the reasons therefor;
- (d) the details of amount paid as LPG subsidy under the Direct Benefit Transfer (DBT) Scheme for the financial years 2018-19, 2019-20 and the current year;
- (e)  whether  the  Government  intends  to  reduce  the  price  of  the  various  petroleum  products  in order  to  reduce  the  burden  of  the  common  people  in  view  of  COVID-19  pandemic,  if  so,  the details of the action taken in this regard?

## ANSWER

पेोलयम और ाक ृतक गैस मंी ( ी धम धान )

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

- (a) Prices of Petrol and Diesel have been made market-determined effective 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  OMCs  have  not  only  increased  but  also  decreased  the  prices

accordingly.  The Government continues to modulate effective price to consumer for Subsidized Domestic LPG.

- (b) The  prices  of  petrol  and  diesel  for  the  last  two  years  are  available  at  the  website  of Petroleum Planning and Analysis Cell (PPAC) i.e. www.ppac.org.in. and the prices of domestic LPG are available at the website of IOCL i.e. www.iocl.com
- (c) The  prices  of  petroleum  products  in  the  country  are  linked  to  the  price  of  respective products  in  the  international  market.  However,  the  Government  continues  to  modulate  the effective price to consumer for Subsidized Domestic LPG and the consumers get the product at subsidized rate. The subsidy on Subsidized Domestic LPG increase/ decrease with the increase/ decrease in the product price in international market and decision of Government on subsidy.
- (d) The details of amount paid as LPG subsidy under the Direct Benefit Transfer Scheme since F.Y 2018-19 is as under:

(Rs. Crore)

| Particulars          | 2018-19   | 2019-20   | 2020-21 (till date)   |
|----------------------|-----------|-----------|-----------------------|
| DBTL (PAHAL) Subsidy | 31,539    | 22,726    | 1,909                 |

- (e) As stated in reply to part (a) above.