Lok Sabha Question No. 3075 (UNSTARRED), answered on 2025-08-07
Subject: Rising Prices of Domestic LPG Cylinders, Petrol and Diesel
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri Manickam Tagore B

## LOK SABHA UNSTARRED QUESTION NO. 3075 TO BE ANSWERED ON 7 AUGUST, 2025

## Rising Prices of Domestic LPG Cylinders, Petrol and Diesel

3075 Shri Manickam Tagore B:

## 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 aware of the financial burden on common households due to the continuous  rise  in  prices  of  domestic  LPG  cylinders,  petrol  and  diesel  and  if  so,  the  details thereof;
- (b) whether the Government is likely to consider placing in the public domain a detailed cost structure and pricing formula used to determine the retail prices of cooking gas, petrol and diesel, if so, the details thereof;
- (c) whether the increase in prices of petrol and diesel is directly linked to global crude oil rates, if so, the details thereof and if not, the other contributing factors;
- (d) whether the Government has a breakup of taxes levied by the Union and State Governments, dealer commission, transportation and profit margins included in the retail price of petrol, diesel and LPG and if so, the details thereof; and
- (e) whether the Government has reduced subsidies on domestic LPG cylinders during each of the last five years and the amount of subsidies disbursed 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) to (e): LPG :

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).

Globally, PMUY is the biggest program of its kind that provides Domestic LPG to more than 10 crore poor households at an effective price of just about Rs. 39/Kg. 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 details of price build up of RSP of Domestic LPG (including taxes levied by Central and State Government) as on 01.08.2025 at Delhi are given below:

| Elements                      |   Rs./14.2 kg Cylinder |
|-------------------------------|------------------------|
| Price Charged to Distributors |                 739.3  |
| Distributors Commission       |                  73.08 |
| Central GST @2.50%            |                  20.31 |
| State GST @2.50%              |                  20.31 |
| Retail Selling Price          |                 853    |

Source: Petroleum Planning & Analysis Cell (PPAC)

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).

The details of subsidy on domestic LPG since 2020-21 are given below:

| Financial Year   | Subsidy^ (Rs. in Crore)   |
|------------------|---------------------------|
| 2020-21          | 11896 #                   |
| 2021-22          | 1811                      |
| 2022-23          | 6965 @                    |
| 2023-24          | 11444                     |
| 2024-25          | 13640                     |

Note: This includes fiscal subsidy and under-recovery to Oil Companies in domestic LPG

^ This includes expenditure on connections given under Pradhan Mantri Ujjwala Yojana (PMUY)

# This includes Pradhan Mantri Garib Kalyan Package subsidy.

@ In addition, Government paid a one-time compensation of Rs.22000 crore to OMCs for under-recoveries on the sale of domestic LPG.

Source: Petroleum Planning and Analysis Cell (PPAC)

## Petrol & Diesel:

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.

For  instance,  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 also 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.

The details of price build up of RSP of Petrol and Diesel (including taxes levied by Central and State Government) as on 01.08.2025 at Delhi are given below:

| Elements                                 | Petrol    | Petrol   | Diesel    | Diesel   |
|------------------------------------------|-----------|----------|-----------|----------|
|                                          | Rs./ Ltr. | %in RSP  | Rs./ Ltr. | %in RSP  |
| Price before taxes and dealer commission | 52.09     | 54.97%   | 52.92     | 60.36%   |
| Customs duty                             | 0.98      |          | 1.10      |          |
| Excise Duty                              | 21.90     |          | 17.80     |          |
| Total Central Taxes                      | 22.88     | 24.15%   | 18.90     | 21.55%   |
| Price Charged to customer - Depot Price  | 74.98     |          | 71.81     |          |
| VAT (Including VAT on dealer commission) | 15.40     |          | 12.83     |          |
| Total State Taxes                        | 15.40     | 16.25%   | 12.83     | 14.63%   |
| Total Taxes                              | 38.28     | 40.39%   | 31.72     | 36.19%   |
| Dealer Commission                        | 4.40      | 4.64%    | 3.03      | 3.45%    |
| RSP per litre (Rounded up)               | 94.77     | 100.00%  | 87.67     | 100.00%  |

Source:  Petroleum Planning and Analysis Cell (PPAC)

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