LOK SABHA

UNSTARRED QUESTION NO. 2951

TO BE ANSWERED ON 20TH MARCH, 2017

PRICES OF PETROLEUM PRODUCTS

2951. SHRI ANANTKUMAR HEGDE:

         MOHAMMED FAIZAL:

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

(a) whether the price of crude oil has been slashed by 60 per cent and the prices of petrol and diesel and other petroleum products in metropolitan cities decreased only 5 to 9 per cent;

(b) if so, the details thereof along with the prices of petrol and diesel increased/ decreased during the last two years and the current year and the reasons for not passing on the benefits of lower crude oil prices in the international market to the consumers; and

(c) whether the Government has any plan to stop subsidy for petroleum products and if so, the details thereof?

ANSWER

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

(SHRI DHARMENDRA PRADHAN)

(a) & (b): The price of petroleum products are linked to the price of respective products in the international market. The prices of Petrol and Diesel have been made market determined by the Government effective 26th June, 2010 and 19th October, 2014 respectively. Since then, the Public Sector Oil Marketing Companies (OMCs) take appropriate decision on pricing of Petrol and Diesel in line with their international prices and other market conditions. The element of excise duty which is specific in nature has been increased since November, 2014. Most of the State Governments have also 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. 

(c): As mentioned above, prices of Petrol and Diesel have been made market determined. The Government continues to modulate the effective cost to consumer for Subsidized Domestic LPG and retail selling price of PDS Kerosene and has taken steps for better targeting so that only needy and poor households avail subsidy.