Lok Sabha Question No. 1336 (UNSTARRED), answered on 2023-07-27
Subject: Rising Prices of Petroleum Products
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Harsimrat Kaur Badal

## LOK SABHA UNSTARRED QUESTION NO. 1336 TO BE ANSWERED ON 27 JULY, 2023

## Rising Prices of Petroleum Products

## 1336. SHRIMATI HARSIMRAT KAUR BADAL:

## पेोलयम और ाक ृतक गैस मंी

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

(a) whether the Government has observed wide-spread resentment among people of the country against rising prices of petroleum products like Petrol, Diesel and LPG and if so, the reaction of the Government thereto;

- (b) whether the Government is aware that compared to 2014, the price of Petrol and Diesel are almost doubled whereas the prices of LPG have tripled;

(c) if so, the reasons for such steep rise in price of petroleum products along with taxes levied by the Government on petroleum products; and

(d) the steps taken by the Government to arrest the rising prices?

## ANSWER

## पेोलयम और ाक ृतक गैस मंालय म राय मंी ( ी रामे वर तेल )

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI RAMESWAR TELI)

(a) to (d): Prices of petrol and diesel in the country 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 average Retail Selling Prices (RSP) of petrol and diesel in Delhi as on 01.04.2014 were Rs. 66.37  and  Rs.  53.38  per  litre  and  as  on  21.07.2023  are  Rs.  96.72  and  Rs.  89.62  per  litre respectively.

Government has reduced Central  Excise  duty  by  Rs.  13/  litre  and  Rs.  16/  litre  on  petrol  and diesel respectively in two tranches in November 2021 and May 2022. The excise duty reductions were fully passed on to consumers and retail prices fell as a result. 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. Subsequently, many States/UTs have also reduced VAT rates on petrol and diesel.

The prices of petroleum products in the country are linked to the price of respective products in the international market. However, for Domestic LPG, Government continues to modulate the effective  price  to  consumer.  The  subsidy,  as  admissible,  is  credited  to  the  bank  accounts  of eligible beneficiaries. In addition, Government has started a targeted subsidy of Rs. 200 per 14.2 Kg cylinder for Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries for upto 12 refills a year for years 2022-23 and 2023-24.

During the period 2020-21 to 2022-23, the average Saudi CP (international benchmark for LPG pricing) went up from $415 per MT to $712 per MT.  However, the increase in international prices was not fully passed on to Indian citizens, due to which the Public Sector Oil Marketing Companies  (OMCs)  suffered  under  recoveries  of  approximately  Rs.28000  crore  on  sale  of domestic  LPG.  To  compensate  this,  the  Government  approved  a  one-time  compensation  of Rs.22,000 crore to OMCs in FY 2022-23. During Covid Pandemic, Government provided about 14.17  Crore  free  LPG  refills  to  PMUY  households  under  Pradhan  Mantri  Gareeb  Kalyan Package during 2020.

The price of non-subsidised domestic LPG cylinder at Delhi in April 2014 was Rs. 980.50 and as on 21.07.2023 is Rs. 1103 per 14.2 Kg cylinder.

The details of taxes on petrol, diesel and domestic LPG as on 21.07.2023 are as under:

## Petrol and Diesel:

Excise & Customs duty: The details of Excise and Customs duty rates on Petrol and Diesel are as below:

| Product   |   Excise duty (Rs./Litre) | Customs duty                           |
|-----------|---------------------------|----------------------------------------|
| Petrol    |                      19.9 | 2.5 %plus 10% social welfare surcharge |
| Diesel    |                      15.8 | 2.5 %plus 10% social welfare surcharge |

VAT Rates: The state-wise details of VAT /Sales tax on petrol and diesel as on 21.07.2023 are given at Annexure.

## LPG:

The rates of Customs duty and GST applicable on LPG are as below:

| Particulars   | Particulars    | GST    | Customs Duty   | Agriculture Infrastructure& Development Cess (AIDC)   |
|---------------|----------------|--------|----------------|-------------------------------------------------------|
| LPG           | Domestic *     | 5.00%  | Nil            | Nil                                                   |
| LPG           | Non - Domestic | 18.00% | 5.00%          | 15%                                                   |

In addition to the above, 10% Social Welfare Surcharge is also applicable on the total duties of Customs (excluding Countervailing Duty in lieu of Integrated Goods and Services Tax)

Source: Petroleum Planning and Analysis Cell (PPAC)

The details of Retail Selling Prices (RSP) of Petrol, Diesel and Domestic LPG in Delhi as on 25.07.2022 and 25.07.2023 are given below:

| RSP as on   |   Petrol (Rs./Litre) |   Diesel (Rs./Litre) |   Domestic LPG (Rs./14.2 Kg Cylinder) |
|-------------|----------------------|----------------------|---------------------------------------|
| 25.07.2022  |                96.72 |                89.62 |                                  1053 |
| 25.07.2023  |                96.72 |                89.62 |                                  1103 |

Annexure  referred  to  in  reply  to  Lok  Sabha  Unstarred  Question  No.  1336  asked  by  Shrimati Harsimrat  Kaur  Badal  to  be  answered  on  27.07.2023  regarding  'Rising  Prices  of  Petroleum Products'

|   S. No. | State                                    | Petrol                                                                                            | Diesel                                                                                                                       |
|----------|------------------------------------------|---------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------|
|        1 | Andaman& Nicobar Islands                 | 1%                                                                                                | 1%                                                                                                                           |
|        2 | Andhra Pradesh                           | 31% VAT + Rs.4/litre VAT+Rs.1/litre Road Development Cess and Vat thereon                         | 22.25% VAT + Rs.4/litre VAT+Rs.1/litre Road Development Cess and Vat thereon                                                 |
|        3 | Arunachal Pradesh                        | 14.50%                                                                                            | 7.00%                                                                                                                        |
|        4 | Assam                                    | 21.95% or Rs.16.80 per litre whichever is higher                                                  | 20.88% OR Rs. 13.60 per litre whichever is higher Rebate of Rs. 1.66 per litre subject to minimum tax of Rs. 13.60 per litre |
|        5 | Bihar                                    | 23.58% or Rs 16.65/Litre whichever is higher (30% Surcharge on VAT as irrecoverable tax)          | 16.37% or Rs 12.33/Litre whichever is higher (30% Surcharge on VAT as irrecoverable tax)                                     |
|        6 | Chandigarh                               | Rs.10/KL cess +15.24% or Rs.12.42/Litre whichever is higher                                       | Rs.10/KL cess + 6.66% or Rs.5.07/Litre whichever is higher                                                                   |
|        7 | Chhattisgarh                             | 24% VAT + Rs.2/litre VAT                                                                          | 23% VAT + Rs.1/litre VAT                                                                                                     |
|        8 | Dadra and Nagar Haveli and Daman and Diu | 12.75% VAT                                                                                        | 13.50% VAT                                                                                                                   |
|        9 | Delhi                                    | 19.40% VAT                                                                                        | Rs.250/KL air ambience charges + 16.75% VAT                                                                                  |
|       10 | Goa                                      | 20% VAT + 0.5% Green cess                                                                         | 17% VAT + 0.5% Green cess                                                                                                    |
|       11 | Gujarat                                  | 13.7% VAT+ 4% Cess on Town Rate&VAT                                                               | 14.9% VAT + 4 %Cess on Town Rate&VAT                                                                                         |
|       12 | Haryana                                  | 18.20% or Rs.14.50/litre whichever is higher as VAT+5% additional tax on VAT                      | 16.00% VAT or Rs.11.86/litre whichever is higher as VAT+5% additional tax on VAT                                             |
|       13 | Himachal Pradesh                         | 17.5% or Rs 13.50/Litre- whichever is higher                                                      | 13.90% or Rs 10.40/Litre- whichever is higher                                                                                |
|       14 | Jammu &Kashmir                           | 24% MST+ Rs.2/Litre employment cess, Rebate of Rs.4.50/Litre                                      | 16% MST+ Rs.1.00/Litre employment cess , Rebate of Rs.6.50/Litre                                                             |
|       15 | Jharkhand                                | 22% on the sale price or Rs. 17.00 per litre ,which ever is higher + Cess of Rs 1.00 per Ltr      | 22% on the sale price or Rs. 12.50 per litre ,which ever is higher + Cess of Rs 1.00 per Ltr                                 |
|       16 | Karnataka                                | 25.92% sales tax                                                                                  | 14.34% sales tax                                                                                                             |
|       17 | Kerala                                   | 30.08% sales tax+ Rs.1/litre additional sales tax + 1% cess , Social security cess Rs.2 per litre | 22.76% sales tax+ Rs.1/litre additional sales tax + 1% cess , Social security cess Rs.2 per litre                            |
|       18 | Ladakh                                   | 15% MST+ Rs.5/Litre employment cess, Reduction of Rs.2.5/Litre                                    | 6% MST+ Rs.1/Litre employment cess , Reduction of Rs.0.50/Litre                                                              |
|       19 | Lakshadweep                              | 10% VAT                                                                                           | 10% VAT                                                                                                                      |

|   S. No. | State                                                 | Petrol                                                                                                                                                                                         | Diesel                                                                                                                                                                                               |
|----------|-------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       20 | Madhya Pradesh                                        | 29%VAT + Rs.2.5/litre VAT+1%Cess                                                                                                                                                               | 19% VAT+ Rs.1.5/litre VAT+1% Cess                                                                                                                                                                    |
|       21 | Maharashtra - Mumbai, Thane , Navi Mumbai& Aurangabad | 26% VAT+ Rs.5.12/Litre additional tax                                                                                                                                                          | 24% VAT                                                                                                                                                                                              |
|       22 | Maharashtra (Rest of State)                           | 25% VAT+ Rs.5.12/Litre additional tax                                                                                                                                                          | 21% VAT                                                                                                                                                                                              |
|       23 | Manipur                                               | 25% VAT                                                                                                                                                                                        | 13.5% VAT                                                                                                                                                                                            |
|       24 | Meghalaya                                             | 13.50% or Rs13.00/Litre- whichever is higher (Rs.0.10/Litre pollution surcharge)                                                                                                               | 5% or Rs 6.00/Litre- whichever is higher (Rs.0.10/Litre pollution surcharge)                                                                                                                         |
|       25 | Mizoram                                               | 16.36% VAT                                                                                                                                                                                     | 5.23% VAT                                                                                                                                                                                            |
|       26 | Nagaland                                              | 25% VAT or Rs. 16.04/litre whichever is higher +5% surcharge + Rs.2.00/Litre as road maintenance cess , Rebate Rs. 5.5 per litre                                                               | 16.50% VAT or Rs. 10.51/litre whichever is higher +5% surcharge + Rs.2.00/Litre as road maintenance cess , Rebate Rs. 5.1 per litre                                                                  |
|       27 | Odisha                                                | 28% VAT                                                                                                                                                                                        | 24% VAT                                                                                                                                                                                              |
|       28 | Puducherry                                            | 14.55% VAT                                                                                                                                                                                     | 8.65% VAT                                                                                                                                                                                            |
|       29 | Punjab                                                | Rs.2050/KL (cess)+ Rs.0.10 per Litre (Urban Transport Fund) + 0.25 per Litre (Special Infrastructure Development Fee)+15.74% VAT plus 10% additional tax or Rs.14.32/Litre whichever is higher | Rs.1050/KL (cess) + Rs.0.10 per Litre (Urban Transport Fund) +0.25 per Litre (Special Infrastructure Development Fee) + 12.00% VAT plus 10% additional tax and or Rs.10.02/Litre whichever is higher |
|       30 | Rajasthan                                             | 31.04% VAT+Rs 1500/KL road development cess                                                                                                                                                    | 19.30% VAT+ Rs.1750/KL road development cess                                                                                                                                                         |
|       31 | Sikkim                                                | 20% VAT+ Rs.3000/KL cess                                                                                                                                                                       | 10% VAT + Rs.2500/KL cess                                                                                                                                                                            |
|       32 | Tamil Nadu                                            | 13% + Rs.11.52 per litre                                                                                                                                                                       | 11% + Rs.9.62 per litre                                                                                                                                                                              |
|       33 | Telangana                                             | 35.20% VAT                                                                                                                                                                                     | 27% VAT                                                                                                                                                                                              |
|       34 | Tripura                                               | 17.50% VAT+ 3% Tripura Road Development Cess                                                                                                                                                   | 10.00% VAT+ 3% Tripura Road Development Cess                                                                                                                                                         |
|       35 | Uttar Pradesh                                         | 19.36% or Rs 14.85/Litre whichever is higher                                                                                                                                                   | 17.08% or Rs 10.41/Litre whichever is higher                                                                                                                                                         |
|       36 | Uttarakhand                                           | 16.97% or Rs 13.14 Per Ltr whichever is greater                                                                                                                                                | 17.15% or Rs Rs 10.41 Per Ltr whichever is greater                                                                                                                                                   |
|       37 | West Bengal                                           | 25% or Rs.13.12/litre whichever is higher as sales tax+ Rs.1000/KL cess - Rs 1000/KL sales tax rebate (20% Additional tax on VAT as irrecoverable tax)                                         | 17% or Rs.7.70/litre whichever is higher as sales tax + Rs 1000/KL cess - Rs 1000/KL sales tax rebate (20% Additional tax on VAT as irrecoverable tax)                                               |

Source: Petroleum Planning and Analysis Cell (PPAC)