Lok Sabha Question No. 294 (STARRED), answered on 2015-08-10
Subject: Prices of Petroleum Products
Ministry: PETROLEUM AND NATURAL GAS
Asked by: JYOTIRADITYA MADHAVRAO SCINDIA, SURESH KODIKUNNIL

**LOK SABHA**

**STARRED QUESTION NO. 294**

**TO BE ANSWERED ON 10** **TH** **AUGUST, 2015**

**PRICES OF PETROLEUM PRODUCTS**

***294.	SHRI JYOTIRADITYA  M.  SCINDIA:**

**SHRI KODIKUNNIL SURESH:**

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

(a) whether the prices of petroleum products are determined by the prices in the international market and if so, the details thereof;

(b) whether the Oil Marketing Companies have revised the prices of petroleum products including petrol/diesel in accordance with the decline in the price of crude oil in international market during the last one year and the current year and if so, the details thereof and if not, the reasons therefor; and

(c) the profit/loss incurred by upstream/downstream/private oil companies and the reasons for decline in profits of some companies despite decline in  the prices of crude oil in the international market during the above period, company-wise?

**ANSWER**

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**¼Jh /keZsUnz iz/kku½**

**MINISTER OF STATE (I/C) IN THE MINISTRY OF PETROLEUM AND NATURAL GAS**

**(SHRI DHARMENDRA PRADHAN)**

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

**Statement referred to in reply to parts (a) to (c) of the Lok Sabha Starred Question No.294 asked by Shri Jyotiraditya M. Scindia and Shri Kodikunnil Suresh to be answered on 10** **th** **August, 2015 regarding “Prices of Petroleum Products”.**

(a) & (b):	The prices of Petrol and Diesel have been made market determined effective 26 th June, 2010 and 19 th 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. The Retail Selling Price (RSP) of Petrol which was Rs. 73.60 per litre (at Delhi) in July, 2014 has been reduced to current RSP of Rs. 64.47 per litre. Similarly, the RSP of Diesel which was Rs. 58.97 per litre (at Delhi) in August 2014 has been reduced to current RSP of Rs. 46.12 per litre.

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 and its basic price has not been increased since 25 th 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.

(c):		The net profit/loss after tax reported by Oil Companies during the year 2013-14 and 2014-15 are given below:

(Rs. Crore)

| Companies         |   2013-14 | 2014-15   |
|-------------------|-----------|-----------|
| ONGC              |     22095 | 17,733    |
| OIL               |      2981 | 2,510     |
| GAIL              |      4375 | 3,039     |
| IOCL              |      7019 | 5,273     |
| HPCL              |      1734 | 2,733     |
| BPCL              |      4061 | 5,085     |
| RIL               |     21984 | 23566     |
| Essar Oil Limited |       126 | 1521      |
| MRPL              |       601 | -1712     |
| NRL               |       371 | 718       |
| CPCL              |      -304 | -39       |

Source: PPAC

The decline in the profits of Upstream Oil Companies i.e. ONGC and OIL is attributed to decline in the international crude oil prices.  IOCL and MRPL has incurred inventory losses due to decline in the international prices of crude oil and petroleum products.  Besides, MRPL has incurred foreign exchange losses.  As regards GAIL their profit has declined, due to reduction in Natural Gas pipeline network tariffs and reduction in availability of domestic gas for petrochemical production.

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