Lok Sabha Question No. 18 (STARRED), answered on 2019-02-04
Subject: Crude Oil Prices
Ministry: PETROLEUM AND NATURAL GAS
Asked by: ASADUDDIN OWAISI

## LOK SABHA STARRED QUESTION NO. 18 TO BE ANSWERED ON 4 TH  FEBRUARY, 2019

## Crude Oil Prices

## *18. SHRI ASADUDDIN OWAISI:

## पेट्रोलियम और प्राक ृ लिक गैस मंत्री

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

- (a) whether there was a sharp rise in crude oil prices during the month of October last year;
- (b) if so, the details thereof and the extent to which this rise was due to low production of OPEC;
- (c) whether after intervention of the US President, some of the OPEC countries and Russia revamped the crude oil production bringing the petrol and diesel prices down and if so, the details thereof;
- (d)  whether OPEC are planning to cut crude oil production which is likely to increase the prices of petrol and diesel in the coming month; and
- (e)  if  so,  the  details  thereof  along  with  the  steps  taken/  being  taken  by  the  Government  to arrest the increasing trend of petrol and diesel prices in the country?

## ANSWER पेट्रोलियम और प्राक ृ लिक गैस मंत्री

## (श्री धमेन्द्र प्रधान)

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

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

## Statement referred to in reply to parts (a) to (e) of Lok Sabha Starred Question No. 18 asked  by  Shri  Asaduddin  Owaisi  to  be  answered  on  4 th February,  2019  regarding 'Crude Oil Prices'.

- (a) & (b) The average price of Indian Basket of crude oil for the month of October, 2018 was $ 80.08/bbl.

The  crude  oil  price  fluctuation  is  a  frequent  market  phenomenon.    Further,  the crude oil production and price depends on several factors including demand and supply, geo-political situation and policies of crude oil producing countries.

- (c) to (e)  In a recent development, OPEC member countries, indicated their continued focus on fundamentals for a stable and balanced oil market, in the interests of producers, consumers, and health and sustainability of the petroleum industry.

Government  has  highlighted  the  issue  of  high  crude  oil  prices  with  OPEC  and OPEC member countries. Indian refiners import crude oil  from diverse sources depending on their technical and commercial considerations and keeping in view the domestic requirement.  Government has also taken steps to enhance domestic oil and gas production and to reduce reliance on imports.

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.

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