Lok Sabha Question No. 2491 (UNSTARRED), answered on 2025-03-13
Subject: Reduction in Price of Petrol, Diesel, LPG and CNG
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Smt. Geniben Nagaji Thakor, Dr. M K Vishnu Prasad

## LOK SABHA UNSTARRED QUESTION NO. 2491 TO BE ANSWERED ON 13 MARCH, 2025

## Reduction in Price of Petrol, Diesel, LPG and CNG

2491. Dr. M K Vishnu Prasad: Smt. Geniben Nagaji Thakor:

## पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũी

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

- (a) whether the price of petrol and diesel would be reduced in line with the falling crude prices, if so, the details thereof;
- (b) whether any steps have been taken by the Government to reduce the price of Petrol, Diesel, LPG gas and CNG, if so, the details thereof;
- (c) if not, the reasons therefor; and
- (d) the details of the cost of procured crude oil from other countries, the cost of processing the product and the price of finished products?

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

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, Central Excise duty was reduced 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 reduced the retail prices of petrol and diesel by Rs. 2 per litre each.

PSU OMCs have recently carried out an intra-state freight rationalisation.  This  has  benefitted consumers located at remote areas, far from Petroleum Oil & Lubricants (POL) Depots in the 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.

Government 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.

India imports about 60% of the domestic LPG consumed. Price of LPG in the country is linked to its price in the international market. While the average Saudi CP (international benchmark for LPG pricing) rose by 63% (from US$ 385/MT in July 2023 to US$ 629/MT in February 2025), the  effective  price  for  Pradhan  Mantri  Ujjwala  Yojana (PMUY) consumers for domestic  LPG was reduced by 44% (from Rs. 903 in August 2023 to Rs. 503 in February 2025).

The retail selling price of a 14.2 Kg domestic LPG cylinder is currently Rs. 803 in Delhi. After a targeted  subsidy  of  Rs.  300/cylinder  to  PMUY  consumers,  Government  of  India  is  providing 14.2 Kg LPG cylinders at an effective price of Rs.503 per cylinder (in Delhi). This is available to more than 10.33 crore Ujjwala beneficiaries, across the country.

The  price  of  Compressed  Natural  Gas  (CNG)  in  any  location  is  fixed  by  the  City  Gas Distribution (CGD) entity authorized by Petroleum and Natural Gas Regulatory Board (PNGRB) after considering cost of gas procured, state taxes, tariff and other components.

India has been the only major economy in the world where the prices of petrol and diesel have come down in recent  years.  Changes  in  prices  of  petrol  and  diesel  in  some  major  economies between November 2021 and January 2025 are as under:

|               | %age Change in Prices between Nov-21 and Jan-25   | %age Change in Prices between Nov-21 and Jan-25   |
|---------------|---------------------------------------------------|---------------------------------------------------|
| Country       | Petrol                                            | Diesel                                            |
| India (Delhi) | -13.60%                                           | -10.92%                                           |
| France        | 14.21%                                            | 15.08%                                            |
| Germany       | 7.87%                                             | 12.43%                                            |
| Italy         | 8.65%                                             | 11.39%                                            |
| Spain         | 8.67%                                             | 12.93%                                            |
| UK            | 0.08%                                             | 2.61%                                             |
| Canada        | 10.52%                                            | 23.05%                                            |
| USA           | 4.83%                                             | 12.86%                                            |

Source: Petroleum Planning and Analysis Cell (PPAC)

Changes in prices of petrol and diesel in some neighboring economies between November 2021 and January 2025

|               | %age Change in Prices between Nov-21 and Jan-25   | %age Change in Prices between Nov-21 and Jan-25   |
|---------------|---------------------------------------------------|---------------------------------------------------|
| Country       | Petrol                                            | Diesel                                            |
| India (Delhi) | -13.60%                                           | -10.92%                                           |
| Pakistan      | 29.76%                                            | 34.97%                                            |
| Bangladesh    | 13.94%                                            | 30.82%                                            |
| Sri Lanka     | 53.98%                                            | 101.59%                                           |
| Nepal         | 22.02%                                            | 31.32%                                            |

Source: Petroleum Planning and Analysis Cell (PPAC)

The  yearly  average  prices  of  Indian  Basket  of  Crude  Oil  and  products  for  last  two  years  and current year are given below:

| F.Y.                      |   Indian Basket of Crude Oil ($/bbl) |   RSP of Petrol (Rs./Ltr) |   RSP of Diesel (Rs./Ltr) |
|---------------------------|--------------------------------------|---------------------------|---------------------------|
| 2022-23                   |                                93.15 |                     97.9  |                     90.58 |
| 2023-24                   |                                82.58 |                     96.63 |                     89.53 |
| 2024-25 (Till 05.03.2025) |                                79.04 |                     94.74 |                     87.64 |

Source: Petroleum Planning and Analysis Cell (PPAC)