Lok Sabha Question No. 4546 (UNSTARRED), answered on 2025-03-27
Subject: Reduction of Taxes on Petrol and Diesel
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri Ramashankar  Vidharthi Rajbhar

## LOK SABHA UNSTARRED QUESTION NO. 4546 TO BE ANSWERED ON 27 MARCH, 2025

## Reduction of Taxes on Petrol and Diesel

4546. Shri Ramashankar Rajbhar:

## पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũी

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

- (a) whether the Government is planning to reduce taxes on petrol and diesel and if so, the details thereof;
- (b) the reasons for the continuous increase in the domestic LPG prices; and
- (c)  whether  the  Government is implementing any new mechanism for checking the quality of diesel and petrol and if so, the details thereof?

## 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): Domestically,  Petrol  and  Diesel  prices  are  at  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. No proposal to further reduce taxes on petrol or diesel is currently under consideration of Government.

- (b): 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.

Globally, PMUY is the biggest program of its kind that provides Domestic LPG to more than 100 million poor households at an effective price of just about Rs. 35/Kg. Further, the effective price of domestic LPG cylinder in neighbouring countries as on 01.01.2025 is as below:

| Country   | Domestic LPG (Rs./14.2 kg.cyl.)   |
|-----------|-----------------------------------|
| India     | 503.00*                           |
| Pakistan  | 1094.83                           |
| Sri Lanka | 1231.53                           |
| Nepal     | 1206.65                           |

Source: Petroleum Planning and Analysis Cell (PPAC)

(c): OMCs  ensure  that  petrol  and  diesel  of  right  quantity  and  quality  are  delivered  to consumers at retail outlets. OMCs' officials conduct regular/surprise inspections at Retail Outlets to check  irregularities/malpractices and  action  is  taken  as  per  the  Marketing  Discipline Guidelines and Dealership Agreement. OMCs have deployed following quality control system to check various irregularities/malpractices at their ROs:

- (i) Availability of filter paper, calibrated density equipment (hydrometer / thermometer) &  5  liter  calibrated  measure  for  quality  checks  and  delivery  of  correct  quantity  of MS/HSD.
- (ii) Surprise inspections by OMC Mobile labs, wherein samples of petrol and diesel from Retail Outlets are drawn and tested.
- (iii) Dispensing units are periodically calibrated and sealed by the Weights and Measure Department to ensure correct  quantity  and  to  avoid  the  tampering  of  the  dispensing units.
- (iv) Installation of GPS to monitor movement of Tank Trucks carrying MS/ HSD.
- (v) Sealing of Tank trucks before leaving Company premises to protect against pilferage / adulteration enroute. Tamper proof locking system has been introduced in tank trucks delivering petrol / diesel at Retail Outlets. A 3-tier sampling system is followed to help ascertain the point where adulteration could have taken place.
- (vi) Automation of all active Retail Outlets to capture the data for better monitoring of RO operations.

*****