Lok Sabha Question No. 2965 (UNSTARRED), answered on 2024-12-12
Subject: Prices of Petroleum Products
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri Virendra Singh

## LOK SABHA UNSTARRED QUESTION NO- 2965 TO BE ANSWERED ON 12 TH  DECEMBER 2024

## PRICES OF PETROLEUM PRODUCTS

†2965. SHRI VIRENDRA SINGH:

## पेůोिलयम और ÿाक ृ ितक गैस मंýी

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

- (a)  the  total  production  of  petroleum  products  in  the  country  in  comparison  to  their consumption;
- (b)  the  total  quantity,  the  prices  along  with  the  names  of  countries  from  which  petroleum products are being imported;
- (c) the reasons for providing diesel and petrol to the consumers of the country at a high price as compared to their purchase prices;
- (d) whether the Government is considering to give relief to consumers from the rising prices of diesel and petrol;
- (e) whether the Government is considering to give subsidy to the farmers of the country to provide diesel at a cheaper prices;
- (f) if so, the details thereof; and
- (g) if not, the reasons therefor?

## ANSWER

## पेůोिलयम और ÿाक ृ ितक गैस मंýालय म¤ राºयमंýी ( ®ी सुरेश गोपी )

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

(a)  to  (g):  During  the  financial  year  2023-24,  the  total  production  and  consumption  of petroleum  products  in  the  country  was  276  Million  Metric  Tonne  (MMT)  and  234  MMT respectively. To fill the demand and supply gap of certain petroleum products like LPG, Fuel Oil and Petcoke, etc. country imported 49 MMT of petroleum products costing 22933 Million USD from the countries located at various geographical locations viz. Middle East, Africa, North America, South America etc. The detail of production, consumption and import with the value of petroleum products are as under:

| Year                              |   2023-24 (P) |
|-----------------------------------|---------------|
| Production (MMT)                  |           276 |
| Consumption (MMT)                 |           234 |
| Quantity of Imports (in MMT)      |            49 |
| Quantity of Exports (in MMT)      |            63 |
| Value of Imports (in Million USD) |         22933 |

Source: Petroleum Planning and Analysis Cell  P: Provisional    MMT: Million Metric Tonne

Prices of petrol and diesel are market determined and Public Sector Oil Marketing Companies (OMCs) take appropriate decision on pricing of petrol and diesel.

India imports more than 85% of its crude oil requirements. Crude oil prices (Indian basket) increased from $55/bbl (March 2015) to $113/bbl (March 2022) and have continued to remain highly volatile.

Domestically, Petrol and Diesel prices have come down to Rs. 94.77 and Rs. 87.67 per litre respectively (Delhi prices) as a result of various steps taken by Government and PSU OMCs, including reduction of Central Excise duty by the Central Government by a total of Rs. 13/litre and Rs. 16/litre on petrol and diesel respectively in two tranches in November 2021 and 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.

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.

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