Lok Sabha Question No. 193 (UNSTARRED), answered on 2019-11-18
Subject: Uniformity in Prices of Petrol/Diesel
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Sanjay Haribhau Jadhav, Kapil Moreshwar Patil

## LOK SABHA

## UNSTARRED QUESTION NO. 193 TO BE ANSWERED ON 18 TH  NOVEMBER, 2019

Uniformity in Prices of Petrol/Diesel

## †193.   SHRI SANJAY JADHAV: SHRI KAPIL MORESHWAR PATIL:

पेट्रोल ियम और प्राक ृ तिक गैस मंत्री

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

- (a)  the  details  of  increase  in  prices  of  petrol  and  diesel  and  CNG  in  terms  of  percentage during the last three years in the country;
- (b) whether the Government has evaluated the increasing consumption of petrol during the last  three  years,  if  so,  the  details  of  the  said  increase  in  the  consumption  in  terms  of percentage and whether the increase in demand is in consonance with the increase in prices;
- (c) the factors taken into consideration for determination of the prices of petrol and petroleum products and the mechanism in place for the same;
- (d) whether the Government has any proposal to bring uniformity in prices of petrol, diesel and CNG across the country and if so, the details thereof; and
- (e)  the  time  likely  to  be  taken  for  the  implementation  of  the  said  proposal  and  if  not,  the reasons therefor?

## ANSWER

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

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

- (a) The average price and percentage increase of petrol and diesel for the last three years is as under:-

| Year    |   Petrol ( ` /litre) |   %increase over previous year |   Diesel ( ` / litre) |   %increase over previous year |
|---------|----------------------|--------------------------------|-----------------------|--------------------------------|
| 2016-17 |                64.61 |                            4.9 |                 53.24 |                          13.25 |
| 2017-18 |                69.2  |                            7.1 |                 58.78 |                          10.41 |
| 2018-19 |                75.37 |                            8.9 |                 68.22 |                          16.06 |

Government of India has allocated domestic gas to GAIL for further distribution to  various  CGD  entities  for  CNG  (Transport)  and  PNG  (Domestic)  purpose. Petroleum  Planning  &  Analysis  Cell  (PPAC)  determines  the  basic  price  of Natural gas as per new domestic natural gas pricing guidelines 2014 on 6 monthly basis. Basic price has increased from US $ 2.50/MMBTU to US $ 3.23/MMBTU in  last  3  years  which  is  an  increase  of  29%.    However,  retail  price  of  CNG  is determined  by  CGD  entities  after  considering  state  taxes,  tariff  and  other components.

- (b) & (c) 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, other market conditions, transportation cost, local taxes and levies. The Government modulates the effective cost to consumer for Subsidized Domestic LPG and Retail Selling Price of PDS Kerosene.

The details of consumption of petrol during the last three years is given as under:-

| Financial Year              | 2016-17   |   2017-18 |   2018-19 |
|-----------------------------|-----------|-----------|-----------|
| Petrol consumption (in TMT) | 23765     |     26174 |     28284 |
| %Growth                     | 9*        |        10 |         8 |

* During the year 2015-16, petrol consumption (in TMT) was 21847.

- (d) & (e) At present, there is no proposal to bring uniformity in retail prices of petrol, diesel and CNG across the country.