Lok Sabha Question No. 2206 (UNSTARRED), answered on 2026-02-12
Subject: Fuel Price Trends and Supply in Punjab
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri Charanjit Singh Channi

## LOK SABHA UNSTARRED QUESTION NO. 2206 TO BE ANSWERED ON 12 FEBRUARY, 2026

Fuel Price Trends and Supply in Punjab

2206.  SHRI CHARANJIT SINGH CHANNI:

## पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũी

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

- (a) whether the Government has monitored the trends in petrol and diesel price and the supply conditions in Punjab, where petrol prices have hovered around specific levels and daily dynamic pricing continues to influence consumers;
- (b) if so, the reasons for persistent volatility in fuel prices affecting citizens and transporters;
- (c) whether any measures have been taken to stabilise fuel prices and ensure consistent supply across Punjab, including stronger oversight on illicit or unauthorised fuel distribution; and
- (d)  if  so,  the  outcomes  of  such  measures  and  the  details  of  price  moderation  or  regulatory interventions?

## 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 (d): 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 final selling prices of petrol and diesel include excise duty fixed by the Central Government and State Value Added  Tax  (VAT)/Taxes  fixed  by  the  respective  State  Governments.  Central  Government uniformly decreased the prices across the country  by  reducing excise duty in November 2021 and May 2022 by Rs. 13/litre and Rs. 16/litre on petrol and diesel respectively. While most State governments reduced VAT rate to provide further relief to citizens, some State Governments did not.

The details of Retail Selling Prices (RSP) of Petrol and Diesel in Delhi and Punjab (Jalandhar) as on 06.02.2026 are given below:

(Rs./Litre)

|        |                | Petrol      | Petrol   | Petrol   | Diesel      | Diesel   | Diesel   |
|--------|----------------|-------------|----------|----------|-------------|----------|----------|
| State  | Reference City | Excise Duty | VAT      | RSP      | Excise Duty | VAT      | RSP      |
| Delhi  | New Delhi      | 21.90       | 15.40    | 94.77    | 17.80       | 12.83    | 87.67    |
| Punjab | Jalandhar      | 21.90       | 17.45    | 97.55    | 17.80       | 12.41    | 87.38    |

Source: Petroleum Planning and Analysis Cell (PPAC)

Government  have  made  fiscal  interventions  whenever  necessary  to  calibrate  the  tax  structure applicable for petroleum products. 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  have  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.  The  prices  of  petrol  and  diesel  in  the  States  across  the  country  vary  due  to differing freight rates, VAT/local levies etc.

Public Sector Oil Marketing Companies (OMCs) have 10 Terminals/Depots (BPCL-4, HPCL-3, IOCL-3) and 4061 number of Retail Outlets (BPCL-837, HPCL-1095, IOCL-2129) in the State of Punjab to ensure uninterrupted and consistent supply of MS & HSD across Punjab.

PSU  OMCS  have  formulated  &  implemented  Marketing  Discipline  Guidelines  (MDG)  and regular/surprise inspections are carried out by OMCs' officials periodically at the Retail Outlets to check irregularities/ malpractices and action is taken in established cases as per the MDG and the Dealership Agreement.

The Central Government has also issued the Motor Spirit and High Speed Diesel (Regulation of Supply, Distribution and Prevention of Malpractices) Order, 2005 under Essential Commodities Act,  1955  which provides for punitive action against malpractices.  Further, in June, 2022, the Government has extended the scope of Universal Service Obligations (USOs) to all retail outlets including  remote  area  retail  outlets.  USOS  have  been  prescribed  so  that  authorized  entities provide quality and uninterrupted fuel supply services to the consumers.

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