Question : Price of Petroleum Products

(a) whether the Government has decreased and increased the prices of various petroleum products including LPG cylinder and petrol during the last three years;
(b) if so, the details thereof and the reasons therefor;
(c) whether the prices of petrol and diesel have increased despite fall in price of crude oil;
(d) whether the Government fixes the price of petrol and diesel on the basis of the price of crude oil; and
(e) the measures proposed to be taken by the Government to control the prices of petrol, diesel and LPG cylinder?

MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS
(SHRI RAMESWAR TELI)

(a) to (e): The prices of Petroleum products are linked to their respective Product prices in International market.

Prices of petrol and diesel have been market-determined with effect from 26.06.2010 and 19.10.2014 respectively. Since then, the Public Sector Oil Marketing Companies (OMCs) have been taking appropriate decisions on pricing of petrol and diesel on the basis of international product prices, exchange rate, tax structure, inland freight and other cost elements.
Prices of LPG in the country are based on Saudi Contract Price (CP), the benchmark for international prices of LPG. Saudi CP has risen approximately 258% from April, 2020 to November, 2021 (236 USD/MT to 846 USD/MT). However, for domestic LPG the Government continues to modulate the effective price to consumer to insulate the common man from rise in international prices.

The Average price of Indian Basket of Crude oil has risen approximately 305% from April, 2020 to November, 2021 ($19.90/bbl to $80.64/bbl).

The Central Government reduced the Central Excise duty on petrol and diesel by Rs. 5 and Rs. 10 per litre respectively effective from 4th November, 2021. The measure was aimed to give a further fillip to the economy and to boost consumption and keep inflation low, thus helping the poor and middle classes. Many States/UTs have also reduced the VAT on petrol and diesel subsequently.

The details of number of times the prices of petrol, diesel and domestic LPG cylinder at Delhi have increased/decreased during the last three years are at the Annexure.
x-x-x-x-x