Lok Sabha Question No. 89 (UNSTARRED), answered on 2016-04-25
Subject: Uniform Oil Prices in States
Ministry: PETROLEUM AND NATURAL GAS
Asked by: NEELAM SONKER, RODMAL NAGAR, VIRENDRA  KUMAR, K. KAMARAAJ, AJAY NISHAD, P. KUMAR, KAUSHALENDRA KUMAR

## LOK SABHA

## UNSTARRED QUESTION NO. 89 TO BE ANSWERED ON 25 TH  APRIL, 2016

## UNIFORM OIL PRICES IN STATES

## 89. SHRIMATI NEELAM SONKER:

SHRI NAGAR RODMAL:

DR. VIRENDRA KUMAR:

DR. K. KAMARAJ:

SHRI AJAY NISHAD:

SHRI P. KUMAR:

SHRI KAUSHALENDRA KUMAR:

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

- (a) whether private oil companies are earning more profit due to decline in crude oil prices and if so, the details thereof;
- (b) whether the Government proposes to make the public sector oil companies agree to bear portion of subsidies given by the Government and if so, the details of under-recoveries and subsidy  given  by  the  Government  on  petroleum  products  to  oil  companies  during  the  last three years and the current year product-wise;
- (c) whether there is disparity in the prices of petrol, diesel, kerosene, LPG and ATF in the States across the country and if so, the details thereof along with steps taken/proposed to be taken by the Government to ensure selling of these products at uniform prices in all States in the country, product/State/UT-wise;
- (d)  whether  there  is  big  difference  in  the  refinery/production  cost  of  petroleum  products particularly petrol and diesel and retail selling prices in various States and if so, the details thereof and the reasons therefor along with criteria adopted to fix the refinery cost of various petroleum products such as ATF, petrol, diesel, LPG and natural gas during the said period, State/ product-wise;
- (e) whether it is a fact that various taxes levied by Union and State Governments on petrol and other petroleum products are higher than their actual cost; and
- (f) if so, the details thereof along with the basic prices of petroleum products and the amount spent for making them usable including taxes and amount of dealer commission per litre on petrol and diesel respectively during the said period?

## ANSWER

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

- (a):          The  details  of  Profit  After  Tax  (PAT)  of  Reliance  Industries  Ltd.  &  Essar  Oil  Ltd. since 2012-13 are as under:

(Amount in Rs. crore)

|       |   2012-13 |   2013-14 |   2014-15 |   9 M, 2015-16 |
|-------|-----------|-----------|-----------|----------------|
| RIL   |     21003 |     21984 |     23566 |          20232 |
| Essar |     -1180 |       126 |      1522 |           1628 |

- (b):        Upto  Financial  Year  2014-15,  under-recoveries  incurred  by  the  PSU  OMCs  were partially  shared  by  the  Government  and  the  upstream  companies  and  the  balance  underrecovery was absorbed by the OMCs. For Financial Year 2015-16, Government has decided to  provide  a  fixed  fiscal  subsidy  of  Rs.18  per  kg  under  the  Direct  Benefit  Transfer  for Domestic LPG during April - October, 2015 and Rs.15 per kg for the period November, 2015 onwards.  Government has also approved the budgetary support  for PDS Kerosene underrecovery  for  financial  year  2015-16  at  a  rate  of  Rs.  12  per  litre  and  the  remaining  underrecovery will be borne by the Oil PSUs. The details of total subsidy/under-recovery burden during the last 3 years and the current year are given at Annexure I .
- (c):        The  basic  prices  of  petroleum  products  are  generally  uniform  across  the  country. However, the final selling prices vary from state to state/ market to market due to changes in other cost elements such as freight, Sales tax/VAT, local levies etc.
- (d):      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  of  these  products  and  other market conditions.  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.
- (e) & (f):   The details of taxes included in the RSP of Petrol and Diesel at the beginning of each of the last 3 years and the current year, at Delhi, are given in Annexure II.

Annexure referred to in reply  to  part  (b)  of  the  Lok  Sabha  Unstarred  Question  No.  89 asked  by  Shrimati  Neelam  Sonker,  Shri  Nagar  Rodmal,  Dr.  Virendra  Kumar,  Dr.  K. Kamaraj,  Shri  Ajay  Nishad,  Shri  P.  Kumar  and  Shri  Kaushalendra  Kumar  to  be answered on 25 th April, 2016 regarding 'Uniform Oil Prices in States'.

(Rs. Crore)

| Particulars                                               |   2012-13 |   2013-14 | 2014-15   |   9M, 2015-16 |
|-----------------------------------------------------------|-----------|-----------|-----------|---------------|
| Diesel                                                    |     92061 |     62837 | 10935*    |             0 |
| PDS Kerosene                                              |     29410 |     30574 | 24799     |          9993 |
| Domestic LPG                                              |     39558 |     46458 | 36580     |             8 |
| Total Under-recoveries (A)                                |    161029 |    139869 | 72314     |         10000 |
| Total DBTL Subsidy (claims)                               |         0 |      3869 | 3971      |         12084 |
| PDS Kerosene and Domestic LPG Subsidy Scheme, 2002        |      2730 |      2580 | 0         |             0 |
| Freight Subsidy (For Far-Flung Areas) Scheme, 2002        |        23 |        21 | 23        |             0 |
| Total Subsidies (B)                                       |      2753 |      6470 | 3994      |         12084 |
| Total Subsidy/ Under-recovery on Petroleum Products (A+B) |    163782 |    146339 | 76308     |         22084 |
| Share of Government                                       |    102753 |     77242 | 31302     |         19802 |
| Share of Upstream Companies                               |     60000 |     67021 | 42822     |          1980 |
| Share of OMCs                                             |      1029 |      2076 | 2184      |           302 |

Annexure referred to in reply to parts (e) & (f) of the Lok Sabha Unstarred Question No. 89 asked by Shrimati Neelam Sonker, Shri Nagar Rodmal, Dr. Virendra Kumar, Dr. K. Kamaraj, Shri Ajay Nishad, Shri P. Kumar and Shri Kaushalendra Kumar to be answered on 25 th April, 2016 regarding 'Uniform Oil Prices in States'.

## Taxes included in the RSP of Petrol at Delhi

(Rs./Litre)

|                                             |   1.4.2013 |   1.4.2014 |   2.4.2015 |   1.4.2016 |
|---------------------------------------------|------------|------------|------------|------------|
| Price excluding taxes and dealer commission |      43.98 |      47.82 |      29.97 |      22.81 |
| Custom duty                                 |       0.83 |       0.91 |       0.56 |       0.45 |
| Excise Duty                                 |       9.48 |       9.48 |      17.46 |      21.48 |
| VAT (Including VAT on dealer commission)    |      11.21 |      12.04 |      10    |      12.69 |
| Dealer Commission                           |       1.79 |       2.01 |       2.01 |       2.25 |
| RSP per litre (Rounded Up)                  |      67.29 |      72.26 |      60    |      59.68 |

## Taxes included in the RSP of Diesel at Delhi

(Rs./Litre)

|                                             |   1.4.2013 |   1.4.2014 |   2.4.2015 |   1.4.2016 |
|---------------------------------------------|------------|------------|------------|------------|
| Price excluding taxes and dealer commission |      37.47 |      43.36 |      30.78 |      21.53 |
| Custom duty                                 |       0.86 |       0.97 |       0.56 |       0.41 |
| Excise Duty                                 |       3.56 |       3.56 |      10.26 |      17.33 |
| VAT (Including VAT on dealer commission)    |       5.65 |       6.41 |       5.64 |       7.62 |
| Dealer Commission                           |       1.09 |       1.19 |       1.26 |       1.44 |
| RSP per litre (Rounded Up)                  |      48.63 |      55.49 |      48.5  |      48.33 |

Note - The price of Petrol and Diesel have been made market determined effective 26.6.2010 and 19.10.2014 respectively. Hence, the buildup of Petrol on all dates and Diesel on 1.4.2015 & 1.4.2016 is as per IOCL.