Lok Sabha Question No. 3350 (UNSTARRED), answered on 2015-08-10
Subject: Prices of Petroleum Products
Ministry: PETROLEUM AND NATURAL GAS
Asked by: PREM SINGH CHANDUMAJRA, HARISHCHANDRA DEORAM CHAVAN, MUTHAMSETTI SRINIVASA RAO (AVNTHI), SUBHASH RAMRAO BHAMRE, C. MAHENDRAN, ANANT KUMAR DATTATREYA HEGDE, P. KARUNAKARAN, VASANTHI M., MD. BADARIDDOZA KHAN, RAKESH SINGH, KAUSHALENDRA KUMAR, SANKAR PRASAD DATTA, M. B. RAJESH, B.V. NAYAK, ASHOK MAHADEORAO NETE

**LOK  SABHA**

**UNSTARRED QUESTION NO. 3350**

TO BE ANSWERED ON 10.8.2015

**PRICES OF PETROLEUM PRODUCTS**

3350. SHRI PREM SINGH CHANDUMAJRA:

SHRI HARISHCHANDRA CHAVAN:

SHRI MUTHAMSETTI SRINIVASA RAO (AVANTHI):

DR. SUBHASH BHAMRE:

SHRI C. MAHENDRAN:

SHRI ANANTKUMAR HEGDE:

`	SHRI P. KARUNAKARAN:

SMT. VASANTHI M.

SHRI MD. DADARUDDOZA KHAN:

SHRI RAKESH SINGH:

SHRI KAUSHALENDRA KUMAR:

SHRI SANKAR PRASAD DATTA:

SHRI M.B. RAJESH:

SHRI B.V. NAIK:

SHRI ASHOK MAHADEORAO NETE:

पेट्रोलियम और प्राकृतिक गैस मंत्री

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

1. whether the prices of crude oil are likely to come down in the international market due to lifting of international sanction against Iran and over supply of crude oil due to increased production in the world;

1. if so, whether the Government has negotiated with Iran for importing oil and estimated that crude oil prices/import bill expected to come down drastically in terms of rupee and the amount of foreign exchange money expected to save in view of the above particularly oil imports from Iran at discounted price and if so, the details thereof;

1. whether the crude oil prices in the international market has been drastically lower during the last three years and the current year and if so, the details of crude oil prices and the import bill during the above period;

1. the details of increase/decrease in the prices of petrol, diesel, LPG, CNG, PNG, Kerosene, ATF and natural gas including reasons for such increase alongwith taxes/duties imposed by the Government on the said petroleum products during the above period and the steps taken to uniform petroleum prices across the country, product/State-wise; and;

1. the concrete steps/study undertaken to reduce the prices of petroleum products including natural gas in proportion of international prices of crude oil and natural gas and find out the mechanism to impose lesser burden on the consumers in the event of possible price rise of crude oil/petroleum products in international market, product-wise?

ANSWER

पेट्रोलियम और प्राकृतिक गैस मंत्रालय में राज्य मंत्री (स्वतंत्र प्रभार) (श्री धर्मेन्द्र प्रधान)

THE MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI DHARMENDRA PRADHAN)

(a)  In the event of lifting of sanctions on Iran, the world oil supply is likely to go up due to additional production. This however may take time. The increased supply in the world market may lead to lower crude oil prices depending on demand and supply balance.

(b)  India is already importing crude oil from Iran as per the reduced quota set by the Joint Plan of Action between the P5 + 1 and the Islamic Republic of Iran reached on November 24, 2013.

(c)  The average price of Indian basket of crude oil and crude import bill during the last three years and the current year are given below:

| Year                              |   2012-13 |   2013-14 |   2014-15 | 2015-16               |
|-----------------------------------|-----------|-----------|-----------|-----------------------|
| Price ($/barrel)                  |    107.97 |    105.52 |     84.16 | 59.83  (up to 4.8.15) |
| Crude oil import bill (Rs. crore) |    784652 |    864875 |    687350 | 129221  (Q1 2015-16)  |

(d)    The details of revision in prices of Petrol, Diesel, PDS Kerosene and Domestic LPG since 1 st April 2012 are given in Annexure 1. The details of revision in price of ATF at Delhi (for Domestic airlines), sourced from IOCL, are given in Annexure 2.

The demand of City Gas Distribution entities for Compressed Natural Gas (transport) and Piped Natural Gas (domestic) sector is met by 100% domestic natural gas supplied at uniform base price notified by the Government under new Domestic Price Guidelines dated 23.10.2014.  However, Government do not control/determine the retail selling price of Compressed Natural Gas (transport) and Piped Natural Gas (domestic) to end consumer.  This is determined by the concerned City Gas Distribution entity as per market conditions.

The details of taxes/ duties in the prices of Petrol and Diesel during the last 3 years and the current year are given below.

Rs./litre

| Date               |   Petrol |   Diesel |
|--------------------|----------|----------|
| As on 01.04.2012   |    14.78 |     2.06 |
| 14.09.2012         |     9.48 |     3.56 |
| 12.11.2014         |    11.02 |     5.11 |
| 03.12.2014         |    13.34 |     6.14 |
| 02.01.2015         |    15.40 |     8.20 |
| 17.01.2015 onwards |    17.46 |    10.26 |

Further, the Customs Duty on Petrol and Diesel is 2.5%. The Customs and Excise duty on PDS Kerosene & Domestic Subsidized LPG is NIL.

As regards uniformity in prices of petroleum products, the basic price and excise duty levied by the central government is uniform across the country. However, the final prices vary from market to market mainly due to changes in State level VAT/ Sales tax and local freight/ delivery charges/ levies etc.

(e):   The prices of Petrol and Diesel have been made market determined effective 26th June, 2010 and 19th October, 2014 respectively. Since then, the Public Sector Oil Marketing Companies (OMCs) take appropriate decision on price of these products in line with changes in the prices in international market and market conditions.  However, in order to protect the consumers from the fluctuations in the prices in the international market, the Government continues to modulate the retail selling price of PDS Kerosene its basic price has not been increased since 25th June 2011. As regards domestic LPG after launch of DBTL, its consumers get the LPG cylinders at Market price and receive LPG subsidy directly into their bank accounts.

Government has implemented New Domestic gas Pricing Guidelines, 2014 to balance the requirements of both producing and consuming sectors.

*******

**Annexure 1**

**Revision in RSP of Petroleum Products since 1.4.2012 at Delhi**

| **Date**   | **Petrol**      | **Diesel**   |       |                  | **PDS Kerosene**   | **Domestic LPG**       |                    |                    | **Reason**                                                                                |
|------------|-----------------|--------------|-------|------------------|--------------------|------------------------|--------------------|--------------------|-------------------------------------------------------------------------------------------|
|            |                 |              |       |                  |                    | **Subsidized**         | **Non-Subsidized** |                    |                                                                                           |
|            | **(Rs./litre)** |              |       |                  |                    | **(Rs./14.2 Kg Cyl.)** |                    |                    |                                                                                           |
| 01.04.2012 | 65.64           | 40.91        | 40.91 | 40.91            | 14.83              | 399.00                 | 399.00             | NA                 | RSP as on 1  st  April 2012                                                               |
| 24.05.2012 | 73.18           |              |       |                  |                    |                        |                    | NA                 | Increase in Prices                                                                        |
| 03.06.2012 | 71.16           |              |       |                  |                    |                        |                    | NA                 | Reduction in Prices                                                                       |
| 18.06.2012 | 70.24           | 41.29        | 41.29 | 41.29            |                    |                        |                    | NA                 | Rebate(Petrol) / Removal of rebate (Diesel) in VAT at Delhi                               |
| 29.06.2012 | 67.78           |              |       |                  |                    |                        |                    | NA                 | Reduction in Prices                                                                       |
| 24.07.2012 | 68.48           |              |       |                  |                    |                        |                    | NA                 | Increase in Prices                                                                        |
| 01.08.2012 | 68.46           | 41.32        | 41.32 | 41.32            |                    |                        |                    | NA                 | Revision in Siding/ shunting charges                                                      |
| 14.09.2012 |                 | 46.95        | 46.95 | 46.95            |                    |                        |                    | NA                 | Increase in Excise Duty & Prices                                                          |
| 18.09.2012 |                 |              |       |                  |                    |                        |                    | 756.50             | Price notified for non-subsidized domestic LPG                                            |
| 01.10.2012 |                 |              |       |                  |                    |                        |                    | 883.50             | Increase in Prices                                                                        |
| 03.10.2012 |                 |              |       |                  | 14.79              |                        |                    |                    | Revision in siding charges                                                                |
| 07.10.2012 |                 |              |       |                  |                    | 410.50                 | 410.50             | 895.50             | Increase in LPG distributor commission                                                    |
| 09.10.2012 | 67.90           |              |       |                  |                    |                        |                    |                    | Reduction in price                                                                        |
| 27.10.2012 | 68.19           | 47.15        | 47.15 | 47.15            |                    |                        |                    |                    | Increase in dealer commission                                                             |
| 01.11.2012 |                 |              |       |                  |                    |                        |                    | 922.50             | Increase in Prices                                                                        |
| 02.11.2012 |                 |              |       |                  |                    |                        |                    | 895.50             | Reduction in price                                                                        |
| 16.11.2012 | 67.24           |              |       |                  |                    |                        |                    |                    | Reduction in price                                                                        |
| 16.01.2013 | 67.56           |              |       |                  |                    |                        |                    |                    | Removal of rebate on VAT in Delhi                                                         |
| 18.01.2013 | 67.26           | 47.65        | 47.65 | 47.65            |                    |                        |                    | 942.00             | Increase (Diesel & Non sub. Dom. LPG)/ Reduction (Petrol) in Prices                       |
| 28.01.2013 |                 |              |       |                  | 14.96              |                        |                    |                    | Increase in dealer commission                                                             |
| 16.02.2013 | 69.06           | 48.16        | 48.16 | 48.16            |                    |                        |                    |                    | Increase in Prices                                                                        |
| 01.03.2013 |                 |              |       |                  |                    |                        |                    | 904.50             | Reduction in price                                                                        |
| 02.03.2013 | 70.74           |              |       |                  |                    |                        |                    |                    | Increase in Price                                                                         |
| 16.03.2013 | 68.34           |              |       |                  |                    |                        |                    |                    | Reduction in price                                                                        |
| 23.03.2013 |                 | 48.67        | 48.67 | 48.67            |                    |                        |                    |                    | Increase in Price                                                                         |
| 01.04.2013 | 68.31           | 48.63        | 48.63 | 48.63            |                    |                        |                    | 901.50             | Revision in siding charges / Reduction in price of non -subsidized domestic LPG           |
| 02.04.2013 | 67.29           |              |       |                  |                    |                        |                    |                    | Reduction in prices                                                                       |
| 16.04.2013 | 66.09           | 48.67        | 48.67 | 48.67            |                    |                        |                    |                    | Reduction in Petrol prices/ Reduction in delivery charges of Diesel                       |
| **Date**   | **Petrol**      | **Diesel**   |       |                  | **PDS Kerosene**   | **Domestic LPG**       |                    |                    | **Reason**                                                                                |
|            |                 |              |       |                  |                    | **Subsidized**         |                    | **Non-Subsidized** |                                                                                           |
|            | **(Rs./litre)** |              |       |                  |                    | **(Rs./14.2 Kg Cyl.)** |                    |                    |                                                                                           |
| 01.05.2013 | 63.09           |              |       |                  |                    |                        |                    | 847.00             | Reduction in prices                                                                       |
| 11.05.2013 |                 | 49.69        | 49.69 |                  |                    |                        |                    |                    | Increase in price                                                                         |
| 01.06.2013 | 63.99           | 50.25        | 50.25 |                  |                    |                        |                    | 802.00             | Increase (petrol and diesel) / reduction (non-sub. Dom LPG) in prices                     |
| 16.06.2013 | 66.39           |              |       |                  |                    |                        |                    |                    | Increase in price                                                                         |
| 29.06.2013 | 68.58           |              |       |                  |                    |                        |                    |                    | Increase in price & delivery charges of Petrol                                            |
| 01.07.2013 |                 | 50.26        | 50.26 |                  |                    |                        |                    | 832.00             | Increase in Delivery charges of HSD / Increase in Price of Non Sub. Domestic LPG          |
| 02.07.2013 |                 | 50.84        | 50.84 |                  |                    |                        |                    |                    | Increase in Price                                                                         |
| 15.07.2013 | 70.44           |              |       |                  |                    |                        |                    |                    | Increase in Price                                                                         |
| 01.08.2013 | 71.28           | 51.40        | 51.40 |                  |                    |                        |                    | 875.00             | Increase in Prices                                                                        |
| 01.09.2013 | 74.10           | 51.97        | 51.97 |                  |                    |                        |                    | 932.50             | Increase in Prices                                                                        |
| 14.09.2013 | 76.06           |              |       |                  |                    |                        |                    |                    | Increase in Price                                                                         |
| 01.10.2013 | 72.40           | 52.54        | 52.54 |                  |                    |                        |                    | 1004.00            | Increase (Diesel & Non Sub. Domestic LPG)/ Reduction (petrol) in Price                    |
| 01.11.2013 | 71.02           | 53.10        | 53.10 |                  |                    |                        |                    | 954.50             | Increase (Diesel)/ Reduction (petrol & Non Sub. Domestic LPG) in Price                    |
| 01.12.2013 |                 | 53.67        | 53.67 |                  |                    |                        |                    | 1017.50            | Increase in prices                                                                        |
| 11.12.2013 |                 |              |       |                  |                    | 414.00                 | 414.00             | 1021.00            | Increase in distributor commission of LPG                                                 |
| 21.12.2013 | 71.52           | 53.78        | 53.78 |                  |                    |                        |                    |                    | Increase in price of Petrol & Increase in Dealer commission on Petrol and Diesel          |
| 01.01.2014 |                 |              |       |                  |                    |                        |                    | 1241.00            | Increase in prices                                                                        |
| 05.01.2014 | 72.43           | 54.34        | 54.34 |                  |                    |                        |                    |                    | Increase in prices                                                                        |
| 01.02.2014 |                 | 54.91        | 54.91 |                  |                    |                        |                    | 1134.00            | Increase (Diesel)/ Reduction (Non Sub. Domestic LPG) in Price                             |
| 01.03.2014 | 73.16           | 55.48        | 55.48 |                  |                    |                        |                    | 1080.50            | Increase (Petrol & Diesel)/ Reduction (Non Sub. Domestic LPG) in Price                    |
| 01.04.2014 | 72.26           | 55.49        | 55.49 |                  |                    |                        |                    | 980.50             | Reduction in Prices (Petrol & Non Sub. Domestic LPG)/ Increase in delivery chg. of Diesel |
| **Date**   | **Petrol**      | **Diesel**   |       | **PDS Kerosene** |                    | **Domestic LPG**       |                    |                    | **Reason for revision**                                                                   |
|            |                 |              |       |                  |                    | **Subsidized**         |                    | **Non-Subsidized** |                                                                                           |
|            | **(Rs./litre)** |              |       |                  |                    | **(Rs./14.2 Kg Cyl.)** |                    |                    |                                                                                           |
| 16.04.2014 | 71.41           | 71.41        |       |                  |                    |                        |                    |                    | Reduction in price                                                                        |
| 01.05.2014 |                 |              |       |                  |                    |                        |                    | 928.50             | Reduction in Price                                                                        |
| 13.05.2014 |                 |              | 56.71 |                  |                    |                        |                    |                    | Increase in price                                                                         |
| 01.06.2014 |                 |              | 57.28 |                  |                    |                        |                    | 905.00             | Increase (Diesel)/ Reduction (Non Sub. Dom. LPG) in price                                 |
| 07.06.2014 | 71.51           | 71.51        |       |                  |                    |                        |                    |                    | Increase in Price                                                                         |
| 25.06.2014 | 71.56           | 71.56        |       |                  |                    |                        |                    |                    | Increase in rail freight                                                                  |
| 01.07.2014 | 73.60           | 73.60        | 57.84 |                  |                    |                        |                    | 922.50             | Increase in Prices                                                                        |
| 01.08.2014 | 72.51           | 72.51        | 58.40 |                  |                    |                        |                    | 920.00             | Increase (Diesel)/ Reduction (petrol & Non Sub. Dom. LPG) in Price                        |
| 16.08.2014 | 70.33           | 70.33        |       |                  |                    |                        |                    |                    | Reduction in price                                                                        |
| 31.08.2014 | 68.51           | 68.51        | 58.97 |                  |                    |                        |                    |                    | Increase (Diesel)/ Reduction (Petrol) in Price                                            |
| 01.09.2014 |                 |              |       |                  |                    |                        |                    | 901.00             | Reduction in price                                                                        |
| 01.10.2014 | 67.86           | 67.86        |       |                  |                    |                        |                    | 880.00             | Reduction in price                                                                        |
| 15.10.2014 | 66.65           | 66.65        |       |                  |                    |                        |                    |                    | Reduction in price                                                                        |
| 19.10.2014 |                 |              | 55.60 |                  |                    |                        |                    |                    | Reduction in price                                                                        |
| 23.10.2014 |                 |              |       |                  |                    | 417.00                 | 417.00             | 883.50             | Increase in Distributor Commission                                                        |
| 01.11.2014 | 64.24           | 64.24        | 53.35 | 15.14*           | 15.14*             |                        |                    | 865.00             | Reduction in prices/ Price of PDS Kerosene as per Mumbai                                  |
| 01.12.2014 | 63.33           | 63.33        | 52.51 |                  |                    |                        |                    | 752.00             | Reduction in prices                                                                       |
| 16.12.2014 | 61.33           | 61.33        | 50.51 |                  |                    |                        |                    |                    | Reduction in prices                                                                       |
| 01.01.2015 | 61.33           | 61.33        | 50.51 |                  |                    |                        |                    | 708.50             | Reduction in prices                                                                       |
| 17.01.2015 | 58.91           | 58.91        | 48.26 |                  |                    |                        |                    |                    | Reduction in prices                                                                       |
| 01.02.2015 |                 |              |       |                  |                    |                        |                    | 605.00             | Reduction in price                                                                        |
| 04.02.2015 | 56.49           | 56.49        | 46.01 |                  |                    |                        |                    |                    | Reduction in prices                                                                       |
| 16.02.2015 | 57.31           | 57.31        | 46.62 |                  |                    |                        |                    |                    | Increase in prices                                                                        |
| 01.03.2015 | 60.49           | 60.49        | 49.71 |                  |                    |                        |                    | 610.00             | Increase in prices                                                                        |

| **D**  at  **e**   | **Petrol**      | **Diesel**   | **PDS  SKO**   | **Domestic LPG**       |                                         | **Reasons**                                                            |
|--------------------|-----------------|--------------|----------------|------------------------|-----------------------------------------|------------------------------------------------------------------------|
|                    |                 |              |                | **RSP**                | **Effective Price after DBTL Subsidy#** |                                                                        |
|                    | **(Rs./litre)** |              |                | **(Rs./14.2 KG Cyl.)** |                                         |                                                                        |
| 01.04.2015         | 60.00           | 48.50        |                | 621.00                 | 417.82                                  | Increase (Non-Subsidized Domestic LPG)/ Reduction (MS & HSD) in prices |
| 16.04.2015         | 59.20           | 47.20        |                |                        |                                         | Reduction in prices                                                    |
| 1.05.2015          | 63.16           | 49.57        | 15.24          | 616.00                 |                                         | Increase (MS, HSD & PDS SKO) / Reduction (Domestic LPG) in prices      |
| 16.05.2015         | 66.29           | 52.28        |                |                        |                                         | Increase in prices                                                     |
| 01.06.2015         |                 |              |                | 626.50                 |                                         | Increase in price                                                      |
| 16.06.2015         | 66.93           | 50.93        |                |                        |                                         | Increase (MS) / Reduction (HSD) in prices                              |
| 01.07.2015         | 66.62           | 50.22        |                | 608.50                 |                                         | Reduction in prices                                                    |
| 16.07.2015         | 66.90           | 49.72        |                |                        |                                         | Reduction in price & increase in VAT rates at Delhi                    |
| 01.08.2015         | 64.47           | 46.12        |                | 585.00                 |                                         | Reduction in prices                                                    |
|                    | **64.47**       | **46.12**    | **15.24***     | **585.00**             | **417.82#**                             | **Current RSP**                                                        |

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 paid by the Govt.

**Annexure 2**

**Price of ATF for Domestic Airlines at Delhi since 1** **st** **April 2012 (as per IOCL)**

| **Date**           |   **(Rs./KL)** |
|--------------------|----------------|
| April 01, 2012     |       67800.30 |
| April 16, 2012     |       67631.45 |
| May 01, 2012       |       67319.71 |
| May 16, 2012       |       67046.95 |
| June 01, 2012      |       65670.14 |
| June 16, 2012      |       62409.95 |
| July 01, 2012      |       61169.08 |
| July 16, 2012      |       62208.18 |
| August 01, 2012    |       65005.59 |
| August 16, 2012    |       67135.76 |
| September 01, 2012 |       72281.92 |
| September 16, 2012 |       73710.69 |
| October 01, 2012   |       70515.97 |
| October 16, 2012   |       68398.79 |
| November 01, 2012  |       68397.52 |
| December 01, 2012  |       67709.12 |
| January 01, 2013   |       66236.20 |
| February 01, 2013  |       67561.04 |
| March 01, 2013     |       70080.87 |
| April 01, 2013     |       66195.89 |
| May 01, 2013       |       62649.95 |
| June 01, 2013      |       62416.16 |
| 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 |
| June 25, 2014      |       69779.91 |
| 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  |       59943.00 |
| January 01, 2015   |       52423.00 |
| February 01, 2015  |       46513.03 |
| March 1,2015       |       50363.00 |
| April 1,2015       |       49338.00 |
| May 1,2015         |       49609.84 |
| June 1,2015        |       53353.92 |
| July 1,2015        |       51267.36 |
| August 1,2015      |       46407.36 |