Lok Sabha Question No. 3188 (UNSTARRED), answered on 2021-12-16
Subject: Price of Petroleum Products
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Mansukhbhai Dhanjibhai Vasava, Chhatar Singh Darbar, Dhal Singh Bisen, Malook Nagar

## LOK SABHA UNSTARRED QUESTION NO. 3188 TO BE ANSWERED ON 16 TH DECEMBER, 2021

## Price of Petroleum Products

†3188. SHRI MANSUKHBHAI DHANJIBHAI VASAVA: SHRI CHHATAR SINGH DARBAR: DR. DHAL SINGH BISEN: SHRI MALOOK NAGAR:

## पेोलयम और ाक ृतक गैस मंी

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

- (a)  whether  the  Government  has  decreased  and  increased  the  prices  of  various  petroleum products including LPG cylinder and petrol during the last three years;
- (b) if so, the details thereof and the reasons therefor;
- (c) whether the prices of petrol and diesel have increased despite fall in price of crude oil;
- (d) whether the Government fixes the price of petrol and diesel on the basis of the price of crude oil; and
- (e) the measures proposed to be taken by the Government to control the prices of petrol, diesel and LPG cylinder?

## ANSWER

## पेोलयम और ाक ृतक गैस मंालय म राय मंी ( ी रामेवर तेल )

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

(a) to (e): The prices of Petroleum products are linked to their respective Product prices in International market.

Prices  of  petrol  and  diesel  have  been  market-determined  with  effect  from  26.06.2010  and 19.10.2014 respectively. Since then, the Public Sector Oil Marketing Companies (OMCs) have been taking  appropriate  decisions  on  pricing  of  petrol  and  diesel  on  the  basis  of  international product prices, exchange rate, tax structure, inland freight and other cost elements.

Prices  of  LPG  in  the  country  are  based  on  Saudi  Contract  Price  (CP),  the  benchmark  for international  prices  of  LPG.  Saudi  CP  has  risen  approximately  258%  from  April,  2020  to November, 2021 (236 USD/MT to 846 USD/MT). However, for domestic LPG the Government continues to modulate the effective price to consumer to insulate the common man from rise in international prices.

The Average price of Indian Basket of Crude oil has risen approximately 305% from April, 2020 to November, 2021 ($19.90/bbl to $80.64/bbl).

The Central Government reduced the Central Excise duty on petrol and diesel by Rs. 5 and Rs. 10 per litre respectively effective from 4 th 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.  Many  States/UTs  have  also  reduced  the  VAT  on  petrol  and  diesel subsequently.

The details of number of times the prices of petrol, diesel and domestic LPG cylinder at Delhi have increased/decreased during the last three years are at the Annexure.

x-x-x-x-x

Annexure

Annexure referred to in reply to parts (a) to (e) of Lok Sabha Unstarred Question No. 3188 asked by  Shri  Mansukhbhai  Dhanjibhai  vasava,  Shri  Chhatar  Singh  Darbar,  Dr.  Dhal  Singh Bisen, Shri Malook Nagar to be answered on 16 December, 2021 regarding 'Crude Oil Price'.

## 2019-20

| Particulars   |   Petrol |   Diesel | Domestic LPG   |
|---------------|----------|----------|----------------|
| Increase      |       89 |       79 | 9              |
| Decrease      |      124 |      119 | 3              |
| No change     |      153 |      168 |                |
| Total         |      366 |      366 | 12             |

## 2020-21

| Particulars   |   Petrol |   Diesel | Domestic LPG   |
|---------------|----------|----------|----------------|
| Increase      |       76 |       73 | 8              |
| Decrease      |       10 |       24 | 2              |
| No change     |      279 |      268 |                |
| Total         |      365 |      365 | 10             |

## 2021-22

| Particulars   |   Petrol |   Diesel | Domestic LPG   |
|---------------|----------|----------|----------------|
| Increase      |       69 |       67 | 4              |
| Decrease      |        7 |       10 | 1              |
| No change     |      177 |      176 |                |
| Total         |      253 |      253 | 5              |

*Data for 2021-22 is upto 9-Dec-21