Lok Sabha Question No. 206 (STARRED), answered on 2016-05-09
Subject: Prices of Petroleum Products
Ministry: PETROLEUM AND NATURAL GAS
Asked by: NALIN KUMAR KATEEL, P.K.SREEMATHI TEACHER

## LOK SABHA STARRED QUESTION NO. 206 TO BE ANSWERED ON 9 TH  MAY, 2016

## PRICES OF PETROLEUM PRODUCTS

## *206.  SHRI NALIN KUMAR KATEEL: SHRIMATI P.K. SREEMATHI TEACHER:

## isVªksfy;e vkSj izkÑfrd xSl ea=h

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

(a)  the  details  of  increase/decrease  in  the  prices  of  petrol,  diesel,  Compressed  Natural  Gas (CNG), Liquefied Petroleum Gas (LPG), Aviation Turbine Fuel (ATF) and kerosene during each of the last three  years along with the criteria/policy adopted/laid down to fix price of petroleum products, product-wise;

- (b) the number of times the prices of various petroleum products have been increased and the reasons therefor along with the reasons for not reducing the oil prices commensurate with the reduction of price of crude oil in the international market during the above period;
- (c) whether the Government has not been able to reap the benefits of cheaper crude oil in the international market on account of delay in construction of strategic reserves of crude oil, if so, the details thereof;
- (d)  the  steps  taken/being  taken  to  construct  the  said  reserves  in  a  time  bound  manner, location-wise, State/UT-wise; and
- (e)  the  remedial  steps  taken/proposed  to  be  taken  by  the  Government  to  counter  the production cut by Oil Producing and Exporting Countries thereby resulting in rise in prices of crude oil in the international market?

ANSWER

## isVªksfy;e vkSj izkÑfrd xSl ea=h Lora= izHkkj

## ( ) ¼Jh /keZsUnz iz/kku½

MINISTER OF STATE (I/C) IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI DHARMENDRA PRADHAN)

(a) to (e):     A statement is laid on the Table of the House.

## Statement referred to in reply to parts (a) to (e) of the Lok Sabha Starred Question No. 206  asked  by  Shri  Nalin  Kumar  Kateel  and  Shrimati  P.K.  Sreemathi  Teacher  to  be answered on 9 th May, 2016 regarding 'Prices of Petroleum Products '.

- (a): The  details  of  revision  in  the  Retail  Selling  Prices  (RSP)  of  Petrol,  Diesel,  PDS Kerosene, Domestic LPG and ATF at Delhi, since 1 st April 2013 are given in Annexure I & II.

The prices of ATF, Petrol and Diesel have been made market determined by the Government effective 1 st April 2001, 26 th June, 2010 and 19 th October, 2014 respectively.   Since then, the Public  Sector  Oil  Marketing  Companies  (OMCs)  take  appropriate  decision  on  pricing  of these  products  in  line  with  their  international  prices  and  other  market  conditions.    The Government continues to modulate the effective price to consumer for Subsidized Domestic LPG.  Further, Price of CNG/PNG is fixed by the concerned City Gas Distribution (CGD) entities under the Petroleum & Natural Gas Regulatory Board (PNGRB) Act, 2006.

- (b): RSP of Petrol and Diesel in the  country  are  linked  to  their  respective  international prices and OMCs are at present applying Trade Parity Pricing methodology to compute the RSP.  Other cost elements in the RSP of Petrol & Diesel viz Excise Duty, BS IV premium, marketing cost and margins etc. are specific costs which do not increase/decrease with the volatility  in  international  prices  of  Petrol  and  Diesel.  The  element  of  excise  duty  which  is specific in nature has been increased since November, 2014. Most of the State Governments also  have  increased  VAT  on  Petrol  and  Diesel.        After  taking  into  account  these  factors, OMCs have passed on major portion of the decrease in price to the consumers of Petrol and Diesel.  Number of times the price of Petrol and Diesel have been increased/decreased since 1 st April 2013 are given below:

| Particulars      |   Petrol |   Diesel |
|------------------|----------|----------|
| No. of Increases |       21 |       28 |
| No. of Decreases |       32 |       19 |

The  effective  price  of  PDS  Kerosene  and  Subsidized  Domestic  LPG  has  not  been increased since 25 th June 2011.

- (c) & (d): Strategic reserve at Visakhapatnam, Andhra Pradesh, has been commissioned and filled with crude oil in October, 2015.  The strategic reserves at Mangalore and Padur in Karnataka  have  also  been  mechanically  completed  in  November,  2015  and  May,  2015 respectively.  Commissioning of Mangalore and Padur reserves also needs laying of pipeline which was delayed due to Right of Use (RoU) problems.  MoP&NG has been continuously monitoring  the  progress  of  pipelines  and  regular  meetings  have  been  held  with  the Government  of  Karnataka  and  local  District  Administration  to  resolve  the  issues.  Now, pipeline for Mangalore cavern has been completed and it is ready to receive crude oil.   Padur cavern is expected to be ready by June, 2016.
- (e):       The  price  of  crude  oil  in  the  international  market  fluctuate,  depending  on  various factors  including  demand  and  supply  of  crude  oil.  Similarly,  the  requirement  of  crude  oil imports for consumption of petro-products and fulfilling the needs of oil refineries is an inter play  of  several  factors  like  success  in  new  production  of  crude  oil,  blending  of  bio  fuels, success in conservation efforts, etc.   The Public Sector Oil Companies import crude oil on term and spot basis as per the prevalent crude import policy.

Statement referred to in reply to part (a) of the Lok Sabha Starred Question No. 206 asked  by  Shri  Nalin  Kumar  Kateel  and  Shrimati  P.K.  Sreemathi  Teacher  to  be answered on 9 th May, 2016 regarding 'Prices of Petroleum Products '.

Revision in RSP of Petrol, Diesel, PDS Kerosene & Domestic LPG at Delhi since 1.4.2013

|            |             |             | PDS         | Domestic LPG      | Domestic LPG      |
|------------|-------------|-------------|-------------|-------------------|-------------------|
| Date       | Petrol      | Diesel      | Kerosene    | Subsidized        | Non- Subsidized   |
|            | (Rs./litre) | (Rs./litre) | (Rs./litre) | (Rs./14.2 KGCyl.) | (Rs./14.2 KGCyl.) |
| 01.04.2013 | 68.31       | 48.63       | 14.96       | 410.50            | 901.50            |
| 02.04.2013 | 67.29       |             |             |                   |                   |
| 16.04.2013 | 66.09       | 48.67       |             |                   |                   |
| 01.05.2013 | 63.09       |             |             |                   | 847.00            |
| 11.05.2013 |             | 49.69       |             |                   |                   |
| 01.06.2013 | 63.99       | 50.25       |             |                   | 802.00            |
| 16.06.2013 | 66.39       |             |             |                   |                   |
| 29.06.2013 | 68.58       |             |             |                   |                   |
| 01.07.2013 |             | 50.26       |             |                   | 832.00            |
| 02.07.2013 |             | 50.84       |             |                   |                   |
| 15.07.2013 | 70.44       |             |             |                   |                   |
| 01.08.2013 | 71.28       | 51.40       |             |                   | 875.00            |
| 01.09.2013 | 74.10       | 51.97       |             |                   | 932.50            |
| 14.09.2013 | 76.06       |             |             |                   |                   |
| 01.10.2013 | 72.40       | 52.54       |             |                   | 1,004.00          |
| 01.11.2013 | 71.02       | 53.10       |             |                   | 954.50            |
| 01.12.2013 |             | 53.67       |             |                   | 1,017.50          |
| 11.12.2013 |             |             |             | 414.00            | 1,021.00          |
| 21.12.2013 | 71.52       | 53.78       |             |                   |                   |
| 01.01.2014 |             |             |             |                   | 1,241.00          |
| 05.01.2014 | 72.43       | 54.34       |             |                   |                   |
| 01.02.2014 |             | 54.91       |             |                   | 1,134.00          |
| 01.03.2014 | 73.16       | 55.48       |             |                   | 1,080.50          |
| 01.04.2014 | 72.26       | 55.49       |             |                   | 980.50            |
| 16.04.2014 | 71.41       |             |             |                   |                   |
| 01.05.2014 |             |             |             |                   | 928.50            |
| 13.05.2014 |             | 56.71       |             |                   |                   |
| 01.06.2014 |             | 57.28       |             |                   | 905.00            |
| 07.06.2014 | 71.51       |             |             |                   |                   |
| 25.06.2014 | 71.56       |             |             |                   | 906.00            |
| 01.07.2014 | 73.60       | 57.84       |             |                   | 922.50            |
| 01.08.2014 | 72.51       | 58.40       |             |                   | 920.00            |
| 16.08.2014 | 70.33       |             |             |                   |                   |
| 31.08.2014 | 68.51       | 58.97       |             |                   |                   |
| 01.09.2014 |             |             |             |                   | 901.00            |

| 01.10.2014   | 67.86   |       |        |        | 880.00   |
|--------------|---------|-------|--------|--------|----------|
| 15.10.2014   | 66.65   |       |        |        |          |
| 19.10.2014   |         | 55.60 |        |        |          |
| 23.10.2014   |         |       |        | 417.00 | 883.50   |
| 01.11.2014   | 64.24   | 53.35 | 15.14* |        | 865.00   |
| 01.12.2014   | 63.33   | 52.51 |        |        | 752.00   |
| 16.12.2014   | 61.33   | 50.51 |        |        |          |
| 01.01.2015   |         |       |        |        | 708.50   |
| 17.01.2015   | 58.91   | 48.26 |        |        |          |
| 01.02.2015   |         |       |        |        | 605.00   |
| 04.02.2015   | 56.49   | 46.01 |        |        |          |
| 16.02.2015   | 57.31   | 46.62 |        |        |          |
| 01.03.2015   | 60.49   | 49.71 |        |        | 610.00   |

|            | Petrol      | Diesel      | PDS SKO     | RSP                 | Effective price after DBTL Subsidy#   |
|------------|-------------|-------------|-------------|---------------------|---------------------------------------|
| Date       | (Rs./litre) | (Rs./litre) | (Rs./litre) | (Rs./14.2 Kg. cyl.) | (Rs./14.2 Kg. cyl.)                   |
| 01.04.2015 | 60.00       | 48.50       |             | 621.00              | 417.82                                |
| 16.04.2015 | 59.20       | 47.20       |             |                     |                                       |
| 1.05.2015  | 63.16       | 49.57       | 15.24       | 616.00              |                                       |
| 16.05.2015 | 66.29       | 52.28       |             |                     |                                       |
| 01.06.2015 |             |             |             | 626.50              |                                       |
| 16.06.2015 | 66.93       | 50.93       |             |                     |                                       |
| 01.07.2015 | 66.62       | 50.22       |             | 608.50              |                                       |
| 16.07.2015 | 66.90       | 49.72       |             |                     |                                       |
| 01.08.2015 | 64.47       | 46.12       |             | 585.00              |                                       |
| 15.08.2015 | 63.20       | 44.95       |             |                     |                                       |
| 01.09.2015 | 61.20       | 44.45       |             | 559.50              |                                       |
| 01.10.2015 |             | 44.95       |             | 517.50              |                                       |
| 16.10.2015 |             | 45.90       |             |                     |                                       |
| 01.11.2015 | 60.70       | 45.93       |             | 545.00              |                                       |
| 16.11.2015 | 61.06       | 46.80       |             |                     |                                       |
| 01.12.2015 | 60.48       | 46.55       |             | 606.50              |                                       |
| 09.12.2015 |             |             |             | 608.00              | 419.26                                |
| 16.12.2015 | 59.98       | 46.09       |             |                     |                                       |
| 01.01.2016 | 59.35       | 45.03       |             | 657.50              | 419.33                                |
| 02.01.2016 | 59.35       | 45.03       |             |                     |                                       |
| 16.01.2016 | 59.03       | 44.18       |             |                     |                                       |
| 19.01.2016 | 59.99       | 44.71       |             |                     |                                       |
| 31.01.2016 | 59.99       | 44.71       |             |                     |                                       |
| 01.02.2016 | 59.95       | 44.68       |             | 575.00              | 419.22                                |
| 18.02.2016 | 59.63       | 44.96       |             |                     |                                       |
| 01.03.2016 | 56.61       | 46.43       |             | 513.50              | 419.13                                |
| 17.03.2016 | 59.68       | 48.33       |             |                     |                                       |
| 01.04.2016 |             |             |             | 509.50              |                                       |

| 05.04.2016   |   61.87 |   49.31 |        |        |        |
|--------------|---------|---------|--------|--------|--------|
| 16.04.2016   |   61.13 |   48.01 |        |        |        |
| 01.05.2016   |   62.19 |   50.95 |        | 527.50 | 419.15 |
| Current RSP  |   62.19 |   50.95 | 15.24* | 527.50 | 419.15 |

Note - Prices of Petrol since 26.6.2010, Non Subsidized Domestic LPG since 13.9.2012 and Diesel since 19.10.2014 are as per IOCL.

*Since there is 'Nil' allocation of PDS Kerosene in Delhi currently, RSP of PDS Kerosene 1.11.2014 onwards is at Mumbai.

# effective 1 st April 2015, Modified DBTL scheme has been implemented in entire country. The effective price to consumers is after DBTL Subsidy.

Statement referred to in reply to part (a) of the Lok Sabha Starred Question No. 206 asked by Shri Nalin Kumar Kateel and Shrimati P.K. Sreemathi Teacher to be answered on 9 th May, 2016 regarding 'Prices of Petroleum Products '.

## Revision in ATF at Delhi since, 1.07.2013

| Date               | Rs./KL    |
|--------------------|-----------|
| July 01, 2013      | 66033.75  |
| August 01, 2013    | 70203.15  |
| September 01, 2013 | 75031.09  |
| October 01, 2013   | 77089.42  |
| November 01, 2013  | 73607.26  |
| December 01, 2013  | 74204.74  |
| January 01, 2014   | 76241.33  |
| February 01, 2014  | 74072.20  |
| March 01, 2014     | 74825.55  |
| April 01, 2014     | 71800.21  |
| May 01, 2014       | 71033.87  |
| June 01, 2014      | 69747.98  |
| July 01, 2014      | 70161.76  |
| August 01, 2014    | 70044.87  |
| September 01, 2014 | 69603.25  |
| October 01, 2014   | 67525.63  |
| November 01, 2014  | 62537.93  |
| December 01, 2014  | 59943     |
| January 01, 2015   | 52423     |
| February 01, 2015  | 46513.03  |
| March 01, 2015     | 50363     |
| April 01, 2015     | 49338     |
| May 01, 2015       | 49609.84  |
| June 01, 2015      | 53353.92  |
| July 01, 2015      | 51267.36  |
| August 01, 2015    | 46407.36  |
| September 01, 2015 | 40938.24  |
| October 01, 2015   | 43,184.17 |
| November 01, 2015  | 43,041.61 |
| November 16, 2015  | 44,846.82 |
| December 01, 2015  | 44,320.32 |
| January 01, 2016   | 39,892.32 |
| February 01,2016   | 35,126.82 |
| March 01,2016      | 39,301.31 |
| March 10, 2016     | 38785.46  |