Lok Sabha Question No. 3005 (UNSTARRED), answered on 2022-08-04
Subject: Rising Price of Petroleum Products
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Mimi Chakraborty

## LOK SABHA UNSTARRED QUESTION NO. 3005 TO BE ANSWERED ON 04   AUGUST, 2022

## Rising Price of Petroleum Products

## 3005.   MS. MIMI CHAKRABORTY:

## पेोलयम और ाक ृतक गैस मंी

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

- (a) whether the Government has planned to tackle the rising price of petroleum products in the country;
- (b) if so, the details thereof and if not, the reasons therefor;
- (c) whether it is a fact that an average petroleum product price has risen over 175 per cent during the last five years and if so, the details thereof; and

(d) the reasons for the 10.8 per cent cut in fuel subsidy as compared to the revised estimate for the Financial Year 2022?

## 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) & (b): 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)  take  appropriate  decision  on  pricing  of  petrol  and  diesel.  The  prices  of  petroleum products in the country are linked to the price of respective products in the international market.

The Central Government reduced the Central Excise duty on petrol and diesel by Rs. 5 and Rs. 10 per litre effective from 4 November, 2021 and Rs. 8 and Rs. 6 per litre respectively effective from 22 May, 2022. 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.

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 218% from April, 2020 to June, 2022  (236  USD/MT  to  750  USD/MT).  However,  the  Government  continues  to  modulate  the effective price to consumer for domestic LPG. The subsidy, as admissible, is credited to the bank account of eligible beneficiaries.  In addition, the Government has announced 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.

- (c):      No  Sir.  The  details  of  monthly  average  retail  selling  prices  of  petrol,  diesel  and  Retail Selling Price (RSP) of Domestic LPG at Delhi as compared to July 2017 are as under:
- (d): Under the Direct Benefit Transfer for LPG (DBTL) scheme, subsidy amount equal to the difference between Retail Selling Price (RSP) and subsidized price of the domestic cylinder is deposited in the account of eligible beneficiaries.

| Date       |   Petrol (Rs./Ltr) |   Diesel (Rs./Ltr) |
|------------|--------------------|--------------------|
| July, 2017 |              64.02 |              54.58 |
| July, 2022 |              96.72 |              89.62 |

| Date           |   Retail Selling Price (RSP) of Domestic LPG (Rs./14.2 KGCylinder) |
|----------------|--------------------------------------------------------------------|
| 01 March 2017  |                                                              737.5 |
| 01 August 2022 |                                                             1053   |

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