Lok Sabha Question No. 1457 (UNSTARRED), answered on 2022-02-10
Subject: Averge Cost of Petroleum Products
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Pritam Gopinath Munde, Rahul Ramesh Shewale, Prasun Banerjee, Girish Bhalchandra Bapat, Chandra Sekhar Sahu

## LOK SABHA UNSTARRED QUESTION NO.1457 TO BE ANSWERED ON 10 TH  FEBRUARY, 2022

## Average Cost of Petroleum Products

## 1457.   DR. PRITAM GOPINATHRAO MUNDE:

SHRI RAHUL RAMESH SHEWALE:

SHRI PRASUN BANERJEE:

SHRI GIRISH BHALCHANDRA BAPAT:

SHRI CHANDRA SEKHAR SAHU:

## पेĚोͧलयम और Ĥाक ृ Ǔतक गैस मंğी

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

- (a) the average cost of petroleum products during last five years, year-wise;
- (b) the yearly percentage increase in the cost of petroleum products during the last four years, year-wise;
- (c) the reasons for increase in the cost of petroleum during the last four years;
- (d)  whether  any  steps  have  been  taken  by  the  Government  to  explore  alternatives  to petroleum products and if so, the details thereof;
- (e) whether any initiatives have been undertaken by the Government to control the rising cost of petroleum products; and
- (f) if so, the details thereof?

## ANSWER

## पेĚोͧलयम और Ĥाक ृ Ǔतक गैस मंğालय मɅ राÏय मंğी ( Įी रामेæवर तेलȣ )

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI RAMESWAR TELI)

(a) to (f): The average price of petrol, diesel and domestic LPG at Delhi since 2016-17 is given below:

| Year                        | Petrol    | Diesel    | Domestic LPG         |
|-----------------------------|-----------|-----------|----------------------|
|                             | Rs./Litre | Rs./Litre | Rs./14.2 Kg cylinder |
| 2016-17                     | 64.61     | 53.24     | 549.69               |
| 2017-18                     | 69.20     | 58.78     | 653.46               |
| 2018-19                     | 75.37     | 68.22     | 768.12               |
| 2019-20                     | 72.69     | 65.78     | 694.73               |
| 2020-21                     | 80.84     | 73.58     | 695.15               |
| 2021-22 (till 2nd February) | 98.43     | 87.44     | 857.40               |

Prices  of  petrol  and  diesel  have  been  market-determined  with  effect  from  26.06.2010  and 19.10.2014 respectively.  Since then, Public Sector Oil Marketing Companies (OMCs) have been taking appropriate decisions on pricing of petrol and diesel on the basis of international product prices and other market conditions. The OMCs increase and decrease prices of petrol and diesel according to changes in international prices and rupee dollar exchange rate. The International  prices  of  Petrol  considered  in  Pricing  in  the  country  have  risen  from  USD 67.83/bbl in the year 2017-18 to USD 102.40/bbl on 31-01-2022. The International prices of Diesel considered in pricing in the country have risen from USD 68.19/bbl in the year 201718 to USD 104.62/bbl on 31-01-2022.

Government  of  India  has  notified  the  National  Policy  on  Biofuels  2018  which  inter-alia envisages increase usage of biofuels in the energy and transportation sectors of the country. The  policy  aims  to  utilize,  develop  and  promote  domestic  feedstock  and  its  utilization  for production of biofuels thereby increasingly substituting fossil fuels. Government has decided to advance the target of 20% ethanol blending in petrol from 2030 to 2025.

Sustainable  Alternative  Towards  Affordable  Transportation  (SATAT)  was  launched  on  1st October,  2018  aiming  to  establish  an  ecosystem  for  production  of  CBG  from  various waste/biomass sources in the country.  SATAT has envisaged developing 5000 CBG plants with total CBG production capacity of 15 Million Metric Tonne Per Annum (MMTPA) i.e. equivalent to 54 MMSCMD of gas by 2023-24

The Central Government reduced the Central Excise duty on petrol and diesel by Rs. 5 and Rs.  10  per  litre  respectively  effective  from  4  November,  2021.  The  measure  was  aimed  to give a further fillip to the economy and to boost consumption and keep inflation low, thus helping the poor and middle classes. Following this reduction in Central Excise duty, many States/UTs have also reduced the VAT on petrol and diesel.