Lok Sabha Question No. 1875 (UNSTARRED), answered on 2025-07-31
Subject: Rising Prices of Petroleum Products
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri K Radhakrishnan

## LOK SABHA UNSTARRED QUESTION NO. 1875 TO BE ANSWERED ON 31 JULY, 2025

## Rising Prices of Petroleum Products

1875. Shri K Radhakrishnan:

## पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũी

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

- (a) the annual retail prices of petrol, diesel and domestic Liquefied Petroleum Gas (LPG) across the country during each of the last ten years;
- (b) the reasons for the continuous rise in the prices of petroleum products despite fluctuations in global crude oil prices;
- (c) the details of the annual profits earned by major public sector and private sector oil and gas companies including Indian Oil Corporation, Bharat Petroleum, Hindustan Petroleum, Reliance Industries and Adani Total Gas Limited during the said period;
- (d)  whether  the  Government  has  conducted  any  study  on  the  impact  of  rising  fuel  prices  on inflation and the cost of living for common citizens and if so, the outcome thereof; and
- (e) whether the Government proposes any measures to regulate fuel pricing mechanisms, ensure greater transparency and provide relief to consumers 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): The details of Yearly Average Retail Selling Prices (RSP) of Petrol, Diesel and Domestic LPG (at Delhi) since 2015-16 are given at Annexure-I.
- (b) to (e): Prices of petrol and diesel are market determined and Public Sector Oil Marketing Companies (OMCs) take appropriate decision on pricing of petrol and diesel.

The prices of petroleum products in the country are linked to the price of respective products in the international market. 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 further to $116/bbl (June 2022) and have continued to fluctuate due to various geopolitical and market factors, whereas domestically, Petrol and Diesel prices have come down to Rs. 94.77 and Rs.  87.67  per  litre  respectively  (Delhi  prices)  from  Rs.  110.04  and  Rs.  98.42  per  litre  in November 2021 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. In April 2025, excise duty on Petrol and Diesel was increased by Rs. 2 per litre each but this was not passed on to consumers.

PSU  OMCs  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.

The Government has taken several steps to control the impact of rising crude prices including augmenting  domestic  exploration  and  production  of  crude  oil,  ethanol  blending  program, improving the share of renewable sources in Indian energy basket 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 51% (from US$ 385/MT in July 2023 to US$ 582/MT in June 2025), the effective price for Pradhan Mantri Ujjwala Yojana (PMUY) consumers for domestic LPG was reduced by 38% (from Rs. 903 in August 2023 to Rs. 553 in July 2025).

The retail selling price of a 14.2 Kg domestic LPG cylinder is currently Rs. 853 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.553 per cylinder (in Delhi). This is available to about 10.33 crore Ujjwala beneficiaries, across the country.

The impact of increase/decrease in prices of petrol, diesel and LPG can be assessed through their impact on inflation measured by Wholesale Price Index (WPI). The weightage of petrol, diesel and LPG in the WPI index is 1.60%, 3.10% and 0.64% respectively.

The details of Standalone Profit after Tax (PAT) / Loss of Public & Private Sector companies in the oil and gas sector, as compiled by PPAC since 2015-16 are given at Annexure-II.

*****

Annexure referred to in reply to Lok Sabha Unstarred Question No. 1875 asked by Shri K Radhakrishnan  to  be  answered  on  31.07.2025  regarding  'Rising  Prices  of  Petroleum Products'.

|                           | Retail selling Prices (at Delhi)   | Retail selling Prices (at Delhi)   | Retail selling Prices (at Delhi)   |
|---------------------------|------------------------------------|------------------------------------|------------------------------------|
| FY                        | Petrol (Rs./Litre)                 | Diesel (Rs./Litre)                 | Domestic LPG (Rs./14.2 KGcyl)      |
| 2015-16                   | 61.59                              | 47.01                              | 586.09                             |
| 2016-17                   | 64.61                              | 53.24                              | 554.17                             |
| 2017-18                   | 69.2                               | 58.78                              | 657.41                             |
| 2018-19                   | 75.37                              | 68.22                              | 754.33                             |
| 2019-20                   | 72.69                              | 65.78                              | 688.03                             |
| 2020-21                   | 80.84                              | 73.58                              | 650.80                             |
| 2021-22                   | 98.05                              | 87.42                              | 866.85                             |
| 2022-23                   | 97.9                               | 90.58                              | 1,038.70                           |
| 2023-24                   | 96.63                              | 89.53                              | 979.23                             |
| 2024-25                   | 94.74                              | 87.64                              | 803.00                             |
| 2025-26 (Till 23.07.2025) | 94.77                              | 87.67                              | 847.26                             |

Source: Petroleum Planning and Analysis Cell (PPAC)

Annexure referred to in reply to Lok Sabha Unstarred Question No. 1875 asked by Shri K Radhakrishnan  to  be  answered  on  31.07.2025  regarding  'Rising  Prices  of  Petroleum Products'.

Standalone Profit after Tax (PAT) / (Loss) of oil and gas companies

(Rs. in Crore)

| FY      | IOCL   | BPCL   | HPCL    | Reliance Industries Ltd.   | Adani Total Gas   |
|---------|--------|--------|---------|----------------------------|-------------------|
| 2015-16 | 11,242 | 7,056  | 3,725   | 27,426                     | *NA               |
| 2016-17 | 19,106 | 8,039  | 6,209   | 31,425                     | *NA               |
| 2017-18 | 21,346 | 7,919  | 6,357   | 33,612                     | 165               |
| 2018-19 | 16,894 | 7,132  | 6,029   | 35,163                     | 229               |
| 2019-20 | 1,313  | 2,683  | 2,637   | 30,903                     | 436               |
| 2020-21 | 21,836 | 19,042 | 10,664  | 31,944                     | 472               |
| 2021-22 | 24,184 | 11,363 | 6,383   | 39,084                     | 505               |
| 2022-23 | 8,242  | 1,870  | (8,974) | 44,190                     | 530               |
| 2023-24 | 39,619 | 26,674 | 14,694  | 42,042                     | 653               |
| 2024-25 | 12,962 | 13,275 | 7,365   | 35,262                     | 648               |

Source: as compiled by Petroleum Planning and Analysis Cell (PPAC)

*NA - Not available