Lok Sabha Question No. 2150 (UNSTARRED), answered on 2021-03-08
Subject: Effects of Rising Prices of Petroleum Products
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Balubhau (Alias Suresh Narayan) Dhanorkar, Nama Nageswara Rao, Anumula Revanth Reddy, Mimi Chakraborty

## LOK SABHA UNSTARRED QUESTION NO. 2150 TO BE ANSWERED ON 8 TH  MARCH, 2021

## Effects of Rising Prices of Petroleum Products

## 2150.   SHRI BALUBHAU ALIAS SURESH NARAYAN DHANORKAR:

SHRI NAMA NAGESWARA RAO:

SHRI ANUMULA REVANTH REDDY:

MS. MIMI CHAKRABORTY:

## पेोलयम और ाक ृतक गैस मंी

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

- (a) whether the price of petroleum products in the country has risen over 30 per cent in phased manner during the last three months period and if so, whether the LPG cylinder price has risen over 300 per cent during the last seven  years and the petroleum fuel over 350 per cent in the same period;

(b) the reasons behind the price hike and effect on the consumers in terms of GDP;

- (c) whether the prices of petroleum products are responsible for the current high inflation rate, if so, the steps taken to bring down the prices of these products;
- (d) the reasons behind not to take all petroleum products under GST regime and whether there is any proposal to include them under GST, if so, the details of effect on the States in terms of cess and price controling subsequently;
- (e) the amount collected by excise duty during the last five years; and

(f) the details of average yearly crude oil price per barrel including the details of average yearly range of petrol price in New Delhi, Mumbai and Hyderabad per litre from 2016 to 2021?

## ANSWER

## पेोलयम और ाक ृतक गैस मंी ( ी धम धान ) MINISTER OF PETROLEUM AND NATURAL GAS

## (SHRI DHARMENDRA PRADHAN)

- (a): No Sir.   The details of prices of major petroleum products in the country during last three months and seven years are given as Annexure-I

(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 their international  product prices,  exchange rate, tax structure, inland freight  and other cost  elements.    The  prices  of  petroleum  products  in  the  country  are  linked  to  the  price  of respective  products  in  the  international  market.  However,  the  Government  continues  to modulate the effective price to consumer for Subsidized Domestic LPG.

The weightage of petrol and diesel in the WPI index is 1.60% and 3.10% respectively and in the CPI index is 2.19% and 0.15% respectively.

(d):  As  per  Article  279  A  (5)  of  the  Constitution,  the  Goods  and  Service  Tax Council shall recommend the date on which the goods and services tax be levied on petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel (ATF).  As  per  the  section  9(2)  of  the  CGST  Act,  inclusion  of  these  products  in  GST  will require  recommendation  of  the  GST  Council.  So  far,  the  GST  Council  has  not  made  any recommendation for inclusion of these five goods under GST.

- (e):  The details of total amount collected by excise duty on petrol, diesel, ATF, Natural Gas and Crude petroleum in the last five years is as under:

(in Rs.lakh Crore)

| Item   |   2016-17 |   2017-18 |   2018-19 |   2019-20 |   2020-21* |
|--------|-----------|-----------|-----------|-----------|------------|
| Total  |      2.37 |      2.41 |      2.35 |      1.97 |       3.01 |

- (f):  The details of average yearly price per barrel of Indian Basket of Crude oil during the last five years is given below:

| Year                               |   Indian Basket of Crude Oil ($/bbl) |
|------------------------------------|--------------------------------------|
| 2016-17                            |                                47.56 |
| 2017-18                            |                                56.43 |
| 2018-19                            |                                69.88 |
| 2019-20                            |                                60.47 |
| 2020-21 (till 28 th February 2021) |                                42.78 |

The Indian basket of Crude Oil represents a derived basket comprising of Sour grade (Oman & Dubai average) and Sweet grade (Brent Dated) of Crude oil processed in Indian refineries

The details of average yearly price of petrol in New Delhi (as per IOCL) during the last five years are given below:

| Year                               |   Petrol (Rs./Litre) |
|------------------------------------|----------------------|
| 2016-17                            |                64.61 |
| 2017-18                            |                69.2  |
| 2018-19                            |                75.37 |
| 2019-20                            |                72.69 |
| 2020-21 (till 28 th February 2021) |                79.82 |

x-x-x-x-x

Annexure referred to in reply to part (a) of Lok Sabha Unstarred Question No. 2150 asked by  Shri  Balubhau alias Suresh  Narayan  Dhanorkar,  Shri  Nama  Nageswara  Rao,  Shri Anumula Revanth Reddy and Ms. Mimi Charkraborty to be answered on 8 th March, 2021 regarding 'Effects of Rising Prices of Petroleum Products'.

## Three months

| Effective Date   | Petrol    | Diesel    | PDS Kerosene   | Domestic Subsidized LPG   |
|------------------|-----------|-----------|----------------|---------------------------|
|                  | Rs./Litre | Rs./Litre | Rs./Litre      | Rs./14.2 Kg Cylinder      |
| 01.12.2020       | 82.34     | 72.42     | 26.25          | 594.00                    |
| 01.01.2021       | 83.71     | 73.87     | 30.12          | 694.00                    |
| 01.02.2021       | 86.30     | 76.48     | 32.37          | 694.00                    |

## Seven Years

| Effective Date   | Petrol    | Diesel    | PDS Kerosene   | RSP of Domestic cylinder   |
|------------------|-----------|-----------|----------------|----------------------------|
|                  | Rs./Litre | Rs./Litre | Rs./Litre      | Rs./14.2 Kg Cylinder       |
| 01.03.2014       | 73.16     | 55.48     | 14.96          | 410.5                      |
| 01.03.2021       | 91.17     | 81.47     | 35.35          | 819                        |

Prices of Petrol, Diesel and Domestic LPG are at Delhi (as per IOCL)

Prices of PDS Kerosene post 1.11.2014 are at Mumbai