Lok Sabha Question No. 406 (STARRED), answered on 2019-07-22
Subject: Prices of Petrol/Diesel
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Jai Prakash

## LOK SABHA STARRED QUESTION NO. 406 TO BE ANSWERED ON 22 ND  JULY, 2019

## Prices of Petrol/Diesel

## †*406. SHRI JAI PRAKASH:

## पेट्रोलियम और प्राक ृ लिक गैस मंत्री

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

- (a)  whether  the  Government  sells  petrol  and  diesel  to  other  countries  at  less  than  half  the prices at which it sells within the country, if so, the details thereof and the reasons therefor;
- (b) the names of the countries to which the Government sells petrol and diesel including the price thereof;
- (c)  whether  it  is  true  that  the  prices  of  petrol  and  diesel  being  sold  in  the  country  are  the highest in the world and if so, the reasons therefor; and
- (d) if not, the countries where the prices of petrol and diesel are higher than India?

## ANSWER

पेट्रोलियम और प्राक ृ लिक गैस मंत्री

(श्री धमेन्द्र प्रधान)

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

- (a) to (d) A statement is laid on the Table of the House.

Statement referred to in reply to parts (a) to (d) of Lok Sabha Starred Question No. 406 asked  by  Shri  Jai  Prakash  to  be  answered  on  22 nd July,  2019  regarding  'Prices  of Petrol/Diesel '.

- (a) & (b) Diesel and petrol is sold to Nepal Oil Corporation (NOC) by Indian Oil Corporation Limited  (IOCL)  under  Supply  Agreement  between  IOCL  and  NOC.    The  basis  of pricing of diesel and petrol is Landed Cost of Products (LCP) at notional pricing point at Haldia/ Mumbai.  Freight is added to the LCP for arriving the Ex Depot/Terminal supply price.  The current price of diesel and petrol ex Haldia and Mumbai (effective from 01.07.2019) is given as below:

Diesel  -

Ex-Haldia:

` 35,729.34/KL

-

Ex Mumbai:

` 34,994.85/KL

Petrol  -

Ex- Haldia:

` 31,742.59/KL

-

Ex-Mumbai:

` 31,099.56/KL

Diesel and petrol is  supplied to  Bhutan by  IOCL on Delivered Supply  basis and is inclusive of delivery charges over and above Ex Supply location price.  The current Ex Supply location price (effective from 01.07.2019) is given below:

Diesel

Ex-Siliguri :

` 48,683.70/KL

Ex-Bongaigaon

:

` 46,060.63/KL

Ex-Betkuchi

:

` 46,060.63/KL

Petrol

Ex-Siliguri

:

` 49,399.70/KL

Ex-Bongaigaon

:

` 45,836.63/KL

Ex-Betkuchi :

` 45,836.63/KL

Further, petrol & diesel are being supplied (effective from 01.07.2019) at ex Siliguri price  of ` 48,913.48/KL  and ` 48,162.81/KL to  Bhutan  by  Bharat  Petroleum Corporation Limited.

The details of export prices of petrol & diesel by Oil PSUs to other countries during April-June, 2019 are given below:

## Petrol:

*Average exchange rate @ ` 69.56/ USD from April-June, 2019

| Country   |   USD/KL |   ` /KL* |
|-----------|----------|----------|
| MAURITIUS |    625.2 |  43488.9 |

## Diesel:

| Product                           | Country    |   USD/KL |   ` /KL* |
|-----------------------------------|------------|----------|----------|
| HF- High Speed Diesel             |            |   502.33 |  34942.1 |
| BS IV- High Speed Diesel          |            |   503.26 |  35006.8 |
| Raw Diesel ( HSD blend component) | MALAYSIA   |   473.42 |  32931.1 |
| High Sulphur Raw Diesel           | UAE        |   460.27 |  32016.4 |
| High Sulphur Raw Diesel           | SINGAPORE  |   489.87 |  34075.4 |
| High Speed Diesel                 | MAURITIUS  |   513.06 |  35688.4 |
| High Speed Diesel                 | TOGO       |   516.8  |  35948.6 |
| High Speed Diesel                 | MOZAMBIQUE |   462.11 |  32144.4 |
| High Speed Diesel                 | BANGLADESH |   479.35 |  33343.6 |

The exports are based on finalized contract and price is based on International price of diesel and petrol effective on dates of individual parcels.  The export realization is in US Dollar.  There is no tax levied on export of diesel and petrol.

- (c) & (d) 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 prices of petrol and diesel in the country are benchmarked to their international product prices. Generally, the prices of sensitive petroleum products in the country are higher/lower than other countries due to various factors, including prevailing tax regime  and  subsidy  compensations  by  the  respective  Governments,  the  details  of which are not maintained by the Government.

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