Lok Sabha Question No. 338 (STARRED), answered on 2023-03-23
Subject: Price of Commercial and Domestic LPG
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Deepak Baij

## LOK SABHA STARRED QUESTION NO. 338 TO BE ANSWERED ON 23 MARCH, 2023

## Price of Commercial and Domestic LPG

*338. SHRI DEEPAK BAIJ:

## पेोलयम और ाक ृतक गैस मंी

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

- (a)  whether  Oil  Marketing  Companies  (OMCs)  have  increased  the  prices  of  commercial  and domestic LPG by Rs. 350.50 and Rs. 50 per cylinder respectively from 1st March, 2023;
- (b) if so, the details thereof along with the reasons therefor;
- (c) whether there is any increase in the prices of LPG in international market during February, 2023; and
- (d) if so, the details thereof along with the price of LPG in other neighbouring countries in terms of Indian Rupee as on 1st March, 2023?

## ANSWER

## पेोलयम और ाक ृतक गैस मंी

( ी हरदप संह पुर )

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

(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. 338 asked  by  Shri  Deepak  Baij  to  be  answered  on  23  March  2023  regarding  'Price  of Commercial and Domestic LPG'.

(a) to (d): India  imports  more  than  60%  of  its  domestic  LPG  consumption.  Government continues  to  modulate  the  effective  price  of  domestic  LPG.  While  the  Saudi  Contract  Prices (CP), on which domestic LPG prices are based, rose by 235 % from 236 $/MT in April 2020 to 790 $/MT in February 2023, retail selling price of domestic LPG has increased only by 89.7 % from Rs.581.5 in May 2020 to Rs.1103 in March 2023 and effective cost for PMUY rose only by 55.2 % during the same period.

While for domestic LPG, Government continues to modulate the effective price to consumers, prices of commercial LPG are set by LPG marketing companies independently. Public Sector Oil Marketing Companies have suffered huge losses on sale of domestic LPG. To compensate these losses, the Government has recently paid a one-time compensation of Rs.22000 crore to OMCs. W.e.f. 21.05.2022, Government has started a targeted subsidy of Rs.200 per 14.2 Kg cylinder for Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries for upto 12 refills for year 2022-23.

The recent two Retail Selling Prices of domestic LPG and commercial LPG at Delhi are given below:

| Effective Date   |   Domestic LPG (Rs./14.2 Kg Cylinder) |
|------------------|---------------------------------------|
| 06-Jul-22        |                                  1053 |
| 01-Mar-23        |                                  1103 |

| Effective Date   |   Commercial LPG (Rs./19 Kg Cylinder) |
|------------------|---------------------------------------|
| 01-Feb-22        |                                1769   |
| 01-Mar-23        |                                2119.5 |

Source: Petroleum Planning and Analysis Cell

The details of Retail Selling Prices of domestic LPG in neighbouring countries as on 1 st March 2023 are given below:

(INR)

| Country           |   Domestic LPG (Rs./14.2 kg cylinder) |
|-------------------|---------------------------------------|
| Pakistan          |                               1259.64 |
| Sri Lanka         |                               1235.55 |
| Nepal (Kathmandu) |                               1137.33 |

Source: As compiled by Petroleum Planning and Analysis Cell