Lok Sabha Question No. 125 (STARRED), answered on 2022-12-15
Subject: Increase in the Price of Petrol and Diesel
Ministry: PETROLEUM AND NATURAL GAS
Asked by: K. Muraleedharan

## LOK SABHA STARRED QUESTION NO. 125 TO BE ANSWERED ON 15 DECEMBER, 2022

## Increase in the Price of Petrol and Diesel

*125. SHRI K. MURALEEDHARAN:

## पेोलयम और ाक ृतक गैस मंी

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

- (a) whether there has been increase in the prices of petrol and diesel during the last two years and if so, the details thereof, year-wise;
- (b) the details of rise in price of domestic gas cylinder during the last two years, year-wise; and
- (c) the manner in which the extra/excess income generated through the price rise of domestic gas cylinder, petrol and diesel is likely to be utilized by the Government?

## ANSWER

## पेोलयम और ाक ृतक गैस मंी

( ी हरदप संह पुर )

## MINISTER OF PETROLEUM AND NATURAL GAS (SHRI HARDEEP SINGH PURI)

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

Statement referred to in reply to parts (a) to (c) of Lok Sabha Starred Question No. 125 asked by Shri K. Muraleedharan to be answered on 15 December 2022 regarding 'Increase in the Price of Petrol and Diesel'.

(a) to (c): India imports more than 85% of its crude oil requirements. Therefore, the prices of  Petrol  and  Diesel  in  the  country  are  linked  to  their  respective  prices  in  the  international market. The retail prices of Petrol and Diesel depend on various factors viz.  crude oil purchase price,  exchange  rate,  shipping  charges,  inland  freight,  refinery  margin,  dealer  commission, central taxes, state VAT and other cost elements.

While  the  average  price  of  Indian  basket  of  Crude  oil  increased  by  102%  (from  $43.34  to $87.55) between November 2020 and November 2022, the retail prices of Petrol and Diesel have increased in India by only 18.95 % and 26.5 % during this period. A comparison of increase in prices of Petrol and Diesel in few countries is as follows:

(Prices in INR)

|               | Oct 2022    | Oct 2022    | Oct 2020    | Oct 2020    | %Change   | %Change   |
|---------------|-------------|-------------|-------------|-------------|-----------|-----------|
| Country       | Petrol      | Diesel      | Petrol      | Diesel      | Petrol    | Diesel    |
| India (Delhi) | 96.72       | 89.62       | 81.06       | 70.53       | 19.3%     | 27.1%     |
| USA           | 83.00       | 113.38      | 41.87       | 46.35       | 98.2%     | 144.6%    |
| Canada        | 104.65      | 130.84      | 57.96       | 54.87       | 80.6%     | 138.4%    |
| Spain         | 140.47      | 154.88      | 100.27      | 88.96       | 40.1%     | 74.1%     |
| UK            | 152.41      | 171.35      | 108.06      | 112.76      | 41.0%     | 52.0%     |
| Exchange rate | Rs. 82.34/$ | Rs. 82.34/$ | Rs. 73.46/$ | Rs. 73.46/$ | 12%       | 12%       |

Source : Petroleum Planning and Analysis Cell (PPAC), Based on IEA's report for Nov'20 and Nov'22.

Prices of Petrol and Diesel have not been increased by public sector Oil Marketing Companies (OMCs) since 6th April 2022, despite record high international prices. As a result, against the combined 'Profit  Before  Tax'  of  Rs.  28360  Crore  in  H1  of  financial  year  2021-22,  the  three OMCs viz. IOCL, BPCL and HPCL have booked a combined loss of Rs. 27276 Crore in H1 of current financial year 2022-23.

To insulate the Indian consumers from the impact of high international crude oil prices, Central Government reduced the Central Excise duty twice on 21 November 2021 and 22 May 2022, effecting a cumulative reduction of Rs. 13 and Rs. 16 per litre for petrol and diesel respectively, which  was  fully  passed  on  to  consumers.  Following  these  reductions  in  Central  Excise  duty, some of the States/UTs also reduced Value Added Tax (VAT) rates on Petrol and Diesel. The details  of  monthly  average  Retail  Selling  Prices  (RSP)  of  Petrol  and  Diesel  at  Delhi  since December 2020 are given at Annexure -I.

India imports more than 60% of its domestic LPG consumption. Prices of LPG in the country are based on Saudi Contract Price (CP), the benchmark for international prices of LPG. Saudi CP rose  from  236  $/MT  in  April  2020  to  952  $/MT  in  April  2022  and  continues  to  prevail  at elevated levels currently. However, the Government continues to modulate the effective price to consumer for domestic LPG. Public Sector Oil Marketing Companies have suffered huge losses on sale of domestic LPG. To compensate these losses, the Government has recently approved a one-time compensation of Rs. 22000 crores to OMCs.

The details of Retails Selling Price (RSP) of domestic LPG (at Delhi) since December 2020 are given at Annexure-II.

Annexure referred to in reply to parts (a) to (c) of Lok Sabha Starred Question No. 125 raised by Shri K. Muraleedharan to be answered on 15 December 2022 regarding 'Increase in the Price of Petrol and Diesel'

| Date                     |   Average RSP Petrol (Rs./Ltr) |   Average RSP Diesel (Rs./Ltr) |
|--------------------------|--------------------------------|--------------------------------|
| Dec-20                   |                          83.54 |                          73.7  |
| Jan-21                   |                          84.89 |                          75.07 |
| Feb-21                   |                          88.83 |                          79.11 |
| Mar-21                   |                          91.06 |                          81.37 |
| Apr-21                   |                          90.47 |                          80.8  |
| May-21                   |                          92.32 |                          82.96 |
| Jun-21                   |                          96.52 |                          87.27 |
| Jul-21                   |                         101.09 |                          89.71 |
| Aug-21                   |                         101.74 |                          89.52 |
| Sep-21                   |                         101.24 |                          88.8  |
| Oct-21                   |                         105.43 |                          94.07 |
| Nov-21                   |                         104.57 |                          87.85 |
| Dec-21                   |                          95.69 |                          86.67 |
| Jan-22                   |                          95.41 |                          86.67 |
| Feb-22                   |                          95.41 |                          86.67 |
| Mar-22                   |                          96.51 |                          87.77 |
| Apr-22                   |                         105.05 |                          96.31 |
| May-22                   |                         102.61 |                          94.4  |
| Jun-22                   |                          96.72 |                          89.62 |
| Jul-22                   |                          96.72 |                          89.62 |
| Aug-22                   |                          96.72 |                          89.62 |
| Sep-22                   |                          96.72 |                          89.62 |
| Oct-22                   |                          96.72 |                          89.62 |
| Nov-22                   |                          96.72 |                          89.62 |
| Dec-22 (till 08.12.2022) |                          96.72 |                          89.62 |

Source: PPAC

Annexure referred to in reply to parts (a) to (c) of Lok Sabha Starred Question No. 125 raised by Shri K. Muraleedharan to be answered on 15 December 2022 regarding 'Increase in the Price of Petrol and Diesel'

| Effective Date   |   Domestic LPG (Rs./14.2 Kg Cylinder) |
|------------------|---------------------------------------|
| 02-Dec-20        |                                 644   |
| 15-Dec-20        |                                 694   |
| 04-Feb-21        |                                 719   |
| 15-Feb-21        |                                 769   |
| 25-Feb-21        |                                 794   |
| 01-Mar-21        |                                 819   |
| 01-Apr-21        |                                 809   |
| 01-Jul-21        |                                 834.5 |
| 17-Aug-21        |                                 859.5 |
| 01-Sep-21        |                                 884.5 |
| 06-Oct-21        |                                 899.5 |
| 22-Mar-22        |                                 949.5 |
| 07-May-22        |                                 999.5 |
| 19-May-22        |                                1003   |
| 06-Jul-22        |                                1053   |

Source: PPAC