Lok Sabha Question No. 105 (STARRED), answered on 2016-07-25
Subject: Prices of Petroleum Products
Ministry: PETROLEUM AND NATURAL GAS
Asked by: BHAIRON PRASAD MISHRA, GAJANAN CHANDRAKANT KIRTIKAR

## LOK SABHA STARRED QUESTION NO. 105 TO BE ANSWERED ON 25 TH  JULY, 2016

## PRICES OF PETROLEUM PRODUCTS

## * 105.   SHRI BHAIRON PRASAD MISHRA: SHRI GAJANAN KIRTIKAR:

## 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, LPG, CNG, PNG, Kerosene including reasons for not reducing the oil prices commensurate with the reduction of price of crude oil in the international market during the last three years and the current year;
- (b)  the  taxes/duties  imposed  and  subsidy  provided  by  the  Government  on  the  petroleum products during the above period, product-wise;
- (c) whether the Government proposes to control the petroleum production/prices with a view to  keeping  a  check  on  export-import  and  has  also  prepared/discovered  any  substitute  for petrol and diesel to provide clean energy in future and if so, the details thereof;
- (d) 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; and
- (e)  if  so,  the  details  thereof  along  with  their  installed  capacity  at  present  and  the  steps taken/being taken to construct the said reserves in a time-bound manner, location-wise?

## 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. 105 asked by Shri Bhairon Prasad Mishra and Shri Gajanan Kirtikar to be answered on 25 th July, 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 CNG at Delhi since 1 st April, 2013 are given in Annexure I and II.

The  prices of Petrol  and  Diesel  have  been  made  market  determined  by  the Government effective 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 and Retail Selling Price (RSP) of PDS Kerosene.  Further, price of CNG/PNG is fixed by the concerned City Gas Distribution (CGD) entities as per market dynamics.

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, Public Sector  OMCs  have  passed  on  major  portion  of  the  decrease  in  price  to  the  consumers  of Petrol and Diesel.

- (b): The  details  of  taxes  levied  by  the  Central  Government  and  State  Governments  on major  petroleum  products  since  1.4.2013  are  given  in Annexure  III and Annexure  IV respectively. The details of subsidy/ under-recovery on major petroleum products since 201314 are given in Annexure V.
- (c): Pricing of petroleum products, except Subsidized Domestic LPG and PDS Kerosene, is deregulated and Public Sector OMCs take appropriate decision on pricing of these products in line with their international prices and other market conditions. Besides, Public Sector Oil Companies also take appropriate decision regarding import/export of petroleum products, as per  the  demand-  supply  scenario.    As  regards  substitution  for  Petrol  and  Diesel  to  provide clean  energy,    the  Government,  through  Public  Sector  OMCs,  is  implementing  Ethanol Blended  Petrol  (EBP)  Programme  under  which,  Public  Sector  OMCs  sell  ethanol  blended petrol with percentage of ethanol upto 10%, depending upon availability of ethanol. Besides, the Government has opened second generation ethanol route (cellulosic and lignocellulosic route)  for  production  of  ethanol  with  effect  from  10.12.2014.  Also,  retailing  of  bio-diesel blended diesel by Public Sector OMCs have started on World Biofuel Day, i.e, 10.8. 2015.
- (d) & (e): Strategic  reserve  at  Visakhapatnam  has  been  commissioned  and  filled  with crude oil  in  October,  2015.  The  strategic  reserves  at  Mangalore  and  Padur  have  also  been mechanically completed in November, 2015 and May, 2015 respectively. Now, Mangalore cavern  is  ready  to  receive  crude  oil.       Commissioning  of  Padur  reserve  needs  laying  of pipeline which was delayed due to Right of Use (RoU) problems.  Ministry of Petroleum and Natural Gas 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.

******

Annexure I

Annexure referred to in reply to part (a) of the Lok Sabha Starred Question No. 105 asked by Shri Bhairon Prasad Mishra and Shri Gajanan Kirtikar to be answered on 25 th July, 2016 regarding 'Prices of Petroleum Products'.

## Revision in RSP of Major Petroleum products at Delhi since 1.4.2013

| Date       | Petrol   | Diesel   | PDS SKO   | Domestic LPG                                    | Domestic LPG                                    |
|------------|----------|----------|-----------|-------------------------------------------------|-------------------------------------------------|
| Date       |          |          |           | Subsidized Non- Subsidized ( Rs. /14.2 KG Cyl.) | Subsidized Non- Subsidized ( Rs. /14.2 KG Cyl.) |
| 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    |           |                                                 | 1004.00                                         |
| 01.11.2013 | 71.02    | 53.10    |           |                                                 | 954.50                                          |
| 01.12.2013 |          | 53.67    |           |                                                 | 1017.50                                         |
| 11.12.2013 |          |          |           | 414.00                                          | 1021.00                                         |
| 21.12.2013 | 71.52    | 53.78    |           |                                                 |                                                 |
| 04.01.2014 | 72.43    | 54.34    |           |                                                 | 1241.00                                         |
| 01.02.2014 |          | 54.91    |           |                                                 | 1134.00                                         |
| 01.03.2014 | 73.16    | 55.48    |           |                                                 | 1080.50                                         |
| 01.04.2014 | 72.26    | 55.49    |           |                                                 | 980.50                                          |
| 16.04.2014 | 71.41    |          |           |                                                 |                                                 |
| 01.05.2014 |          |          |           |                                                 | 928.50                                          |
| 16.05.2014 |          | 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                                          |

| Date       | Petrol        | Diesel        | PDS SKO       | Domestic LPG         | Domestic LPG         |
|------------|---------------|---------------|---------------|----------------------|----------------------|
|            |               |               |               | Subsidized           | Non- Subsidized      |
|            | ( Rs. /litre) | ( Rs. /litre) | ( Rs. /litre) | ( Rs. /14.2 KG Cyl.) | ( Rs. /14.2 KG Cyl.) |
| 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         | 15.24         |                      |                      |
| 01.03.2015 | 60.49         | 49.71         |               |                      | 610.00               |

|            |               | Diesel        | PDS SKO       | Domestic LPG        | Domestic LPG                       |
|------------|---------------|---------------|---------------|---------------------|------------------------------------|
| D at e     | Petrol        |               |               | RSP                 | Effective cost after DBTL Subsidy# |
|            | ( 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         |               |                     |                                    |

|            |                                   | Diesel                            | PDS SKO                           | Domestic LPG                      | Domestic LPG                       |
|------------|-----------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|------------------------------------|
| D at e     | Petrol                            |                                   |                                   | RSP                               | Effective cost after DBTL Subsidy# |
|            | ( Rs. /litre) (Rs. /14.2 KG Cyl.) | ( Rs. /litre) (Rs. /14.2 KG Cyl.) | ( Rs. /litre) (Rs. /14.2 KG Cyl.) | ( Rs. /litre) (Rs. /14.2 KG Cyl.) | ( Rs. /litre) (Rs. /14.2 KG Cyl.)  |
| 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                             |
| 04.03.2016 |                                   |                                   | 15.42                             |                                   |                                    |
| 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                             |                                   |                                   |                                    |
| 25.04.2016 |                                   |                                   | 15.36                             |                                   |                                    |
| 01.05.2016 | 62.19                             | 50.95                             |                                   | 527.50                            | 419.15                             |
| 17.05.2016 | 63.02                             | 51.67                             |                                   |                                   |                                    |
| 01.06.2016 | 65.60                             | 53.93                             |                                   | 548.50                            | 419.18                             |
| 03.06.2016 |                                   |                                   | 15.02                             |                                   |                                    |
| 16.06.2016 | 65.65                             | 55.19                             |                                   |                                   |                                    |
| 01.07.2016 | 64.76                             | 54.70                             |                                   | 537.50                            | 421.16                             |
| 07.07.2016 |                                   |                                   | 15.27                             |                                   |                                    |
| 16.07.2016 | 62.51                             | 54.28                             |                                   |                                   |                                    |
|            | 62.51                             | 54.28                             | 15.27*                            | 537.50                            | 421.16                             |

Note  -  1.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.

2. In cases price of Indian basket crude oil is not available for the date, the price for the previous working day has been given.

*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 January 2015, Modified DBTL scheme has been implemented in entire country. The effective cost to consumer is after DBTL Subsidy.

Annexure II

Annexure referred to in reply to part (a) of the Lok Sabha Starred Question No. 105 asked by Shri Bhairon Prasad Mishra and Shri Gajanan Kirtikar to be answered on 25 th July, 2016 regarding 'Prices of Petroleum Products'.

The details of revision in CNG prices at Delhi since 01.04.2013

| From       | To         |   Sale Price (Rs/Kg) |
|------------|------------|----------------------|
| 01 04.2013 | 24.06.2013 |                39.9  |
| 25.06.2013 | 07.09.2013 |                41.9  |
| 08.09.2013 | 26.12.2013 |                45.6  |
| 27.12.2013 | 07.02.2014 |                50.1  |
| 08.02.2014 | 02.05.2014 |                35.2  |
| 03.05.2014 | 01.04.2015 |                38.15 |
| 02.04.2015 | 17.05.2015 |                37.55 |
| 18 05.2015 | 01.10.2015 |                38    |
| 02.10.2015 | 01.04.2016 |                37.2  |
| 02.04.2016 | 01.07.2016 |                36.6  |
| 02.07.2016 | Till Date  |                36.85 |

## Annexure III

Annexure referred to in reply to part (b) of the Lok Sabha Starred Question No. 105 asked by Shri Bhairon Prasad Mishra and Shri Gajanan Kirtikar to be answered on 25 th July, 2016 regarding 'Prices of Petroleum Products'.

## Taxes levied by the Central Government on Major petroleum products since 1.4.2013 Customs duty rates since 1 st April 2013

(in %)

| Date             |   Petrol |   Diesel | PDS Kerosene   | Domestic LPG   |
|------------------|----------|----------|----------------|----------------|
| Since 01/04/2013 |      2.5 |      2.5 | Nil            | Nil            |

## Excise Duty Rates since 1 st April 2013

| Date           |   Petrol* |   Diesel* | PDS Kerosene   | Domestic LPG   |
|----------------|-----------|-----------|----------------|----------------|
| As on 01/04/13 |      9.48 |      3.56 | NIL            | NIL            |
| 12/11/14       |     11.02 |      5.11 | NIL            | NIL            |
| 03/12/14       |     13.34 |      6.14 | NIL            | NIL            |
| 02/01/15       |     15.4  |      8.2  | NIL            | NIL            |
| 17/01/15       |     17.46 |     10.26 | NIL            | NIL            |
| 01/03/15       |     17.46 |     10.26 | NIL            | NIL            |
| 07/11/15       |     19.06 |     10.66 | NIL            | NIL            |
| 17/12/15       |     19.36 |     11.83 | NIL            | NIL            |
| 02/01/16       |     19.73 |     13.83 | NIL            | NIL            |
| 16/01/16       |     20.48 |     15.83 | NIL            | NIL            |
| 31/01/16       |     21.48 |     17.33 | NIL            | NIL            |
| 01/03/16       |     21.48 |     17.33 | NIL            | NIL            |

## Annexure IV

## Annexure referred to in reply to part (b) of the Lok Sabha Starred Question No. 105 asked by Shri Bhairon Prasad Mishra and Shri Gajanan Kirtikar to be answered on 25 th July, 2016 regarding 'Prices of Petroleum Products'.

|                                          | July'13            | July'16            | July'13            | July'16            |
|------------------------------------------|--------------------|--------------------|--------------------|--------------------|
|                                          | Effective tax rate | Effective tax rate | Effective tax rate | Effective tax rate |
| State                                    | Petrol (%)         | Petrol (%)         | Diesel (%)         | Diesel (%)         |
| Andhra Pradesh                           | 31.00              | 39.51              | 22.25              | 31.20              |
| Assam                                    | 27.50              | 30.08              | 16.50              | 20.00              |
| Bihar                                    | 24.50              | 24.50              | 16.00              | 18.00              |
| Chhattisgarh                             | 25.00              | 30.20              | 25.00              | 27.19              |
| Delhi                                    | 20.00              | 27.00              | 13.14              | 17.40              |
| Goa                                      | 0.10               | 15.00              | 20.00              | 22.00              |
| Gujarat                                  | 25.46              | 28.96              | 24.63              | 28.96              |
| Haryana                                  | 21.00              | 26.25              | 9.24               | 17.22              |
| Himachal Pradesh                         | 25.00              | 27.00              | 9.60               | 16.00              |
| Jammu & Kashmir                          | 25.17              | 29.99              | 14.15              | 18.10              |
| Jharkhand                                | 20.00              | 34.14              | 18.00              | 24.71              |
| Karnataka                                | 31.25              | 36.50              | 22.59              | 24.95              |
| Kerala                                   | 25.94              | 34.23              | 20.00              | 26.98              |
| Madhya Pradesh                           | 28.27              | 38.68              | 24.23              | 31.59              |
| Maharashtra - Mumbai, Thane& Navi Mumbai | 27.73              | 35.41              | 24.00              | 28.42              |
| Maharashtra (Rest of State)              | 26.70              | 34.54              | 21.00              | 25.43              |
| Meghalaya                                | 18.35              | 22.44              | 11.66              | 13.77              |
| Mizoram                                  | 20.00              | 20.00              | 12.00              | 12.00              |
| Nagaland                                 | 21.00              | 24.68              | 12.60              | 14.18              |
| Odisha                                   | 19.18              | 27.26              | 19.18              | 27.26              |
| Punjab                                   | 33.17              | 36.34              | 9.63               | 17.29              |
| Rajasthan                                | 26.92              | 33.20              | 17.91              | 25.88              |
| Sikkim                                   | 20.49              | 33.43              | 13.21              | 23.09              |
| Tamil Nadu                               | 27.00              | 27.00              | 21.43              | 21.43              |
| Telangana                                | NA                 | 35.20              | NA                 | 27.00              |
| Uttarakhand                              | 25.00              | 35.92              | 18.26              | 22.34              |
| Uttar Pradesh                            | 26.55              | 35.49              | 17.23              | 20.92              |
| West Bengal                              | 26.71              | 28.52              | 18.56              | 18.53              |
| Chandigarh                               | 20.02              | 24.76              | 12.53              | 16.43              |
| Dadra & Nagar Haveli                     | 20.00              | 20.00              | 15.00              | 15.00              |
| Daman & Diu                              | 20.00              | 20.00              | 15.00              | 15.00              |
| Puducherry                               | 15.00              | 15.00              | 14.00              | 14.00              |

Annexure referred to in reply to part (b) of the Lok Sabha Starred Question No. 105 asked by Shri Bhairon Prasad Mishra and Shri Gajanan Kirtikar to be answered on 25 th July, 2016 regarding 'Prices of Petroleum Products'.

## Subsidy/ Under-recovery on Petroleum Products since 2013-14

(Rs. Crore)

| Particulars    |   2013-14 |   2014-15 |   2015-16 |
|----------------|-----------|-----------|-----------|
| Petrol         |         0 |         0 |         0 |
| Diesel         |     62837 |     10935 |         0 |
| PDS Kerosene # |     31255 |     24804 |     11496 |
| Domestic LPG # |     52247 |     40569 |     16074 |
| Total          |    146339 |     76308 |     27570 |