Lok Sabha Question No. 1832 (UNSTARRED), answered on 2024-12-05
Subject: Taxes on Petrol and Diesel
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri Zia Ur Rehman

## LOK SABHA

## UNSTARRED QUESTION NO. 1832 TO BE ANSWERED ON 05 DECEMBER, 2024

## Taxes on Petrol and Diesel

†1832 Shri Zia Ur Rehman:

## पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũी

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

(a) whether the Government proposes to reduce the Central and State level taxes on petrol and diesel and if so, the details thereof;

(b)  whether  the  Government  has  any  policy  to  address  the  problems  of  distribution  of  LPG cylinder in rural areas;

(c) if so, the details thereof;

(d) whether this policy has been adopted; and

(e) if not, the reasons therefor?

## ANSWER

## पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũालय मŐ राǛ मंũी ( ŵी सुरे श गोपी )

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI SURESH GOPI)

(a): 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, which was fully passed on to consumers. Some State Governments also reduced state VAT rates to provide relief to citizens. In March, 2024, OMCs also reduced the retail prices of petrol and diesel by Rs. 2 per litre each, across the country. As a result, retail prices of petrol and diesel have come down to Rs. 94.77 and Rs. 87.67 per litre in November 2024 respectively.

Government  of  India  also  took  several  other  steps  to  insulate  common  citizens  from  high international prices, which  included diversifying the crude import basket, invoking the provisions of Universal Service Obligation to ensure availability of petrol & diesel in domestic market, increasing the blending of ethanol in petrol, etc.

Recently  PSU  OMCs  have  carried  out  intra-state  freight  rationalisation.  This  has  benefitted consumers located at remote areas, far from Petroleum Oil & Lubricants (POL) Depots in form of  reduced  Petrol  and  Diesel  prices  in  remote  parts  within  the  states.  This  initiative  has  also reduced  the  difference  between  the  maximum  and  minimum  retail  prices  of  Petrol  or  Diesel within a state.

(b) to (e): Appointment  of  LPG  distributorships  is  a  continuous  process  and  locations  for setting  up  of  LPG  distributorships  are  identified  based  on  sale  potential  that  makes  them commercially viable. Public Sector Oil Marketing Companies (OMCs) are engaged in extending the reach of LPG in rural area across the country by setting up of new distributorships. As on 01.11.2024,  there  are  25,532  LPG  distributorships  across  the  country,  out  of  which  17,610 distributors are catering to rural areas. Further, OMCs have commissioned 7944 distributorships across the country during the period 01.04.2016 to 31.10.2014, out of which 7361 (93%) cater to rural areas.

Apart from above, OMCs have entered into an agreement with Common Service Centre (CSC SPV) for leveraging CSC VLE (Village Level Entrepreneurs) network for various LPG related services like new connection enrolment, refill booking and refill deliveries.

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