MINISTER OF PETROLEUM AND NATURAL GAS(SHRI S. JAIPAL REDDY)
(a) to (e): A statement is laid on the Table of the House.
Statement referred to in reply to parts (a) to (e) of Lok Sabha Starred Question
No. 63 asked by Shrimati Seema Upadhyay and Adv. Ganeshrao Dudhgaonkar to be
answered on 4th August, 2011 regarding “Hike in Prices of Petroleum Products.â€
(a): The prices of sensitive petroleum products i.e. Petrol, Diesel, Kerosene
and Domestic LPG in India in comparison to other countries are as under–
(Price in Indian Rupees)
Petrol Diesel PDS Domestic Kerosene LPG
India (Delhi) 63.70 41.29 14.83 399.00
Pakistan1 41.81 46.70 44.06 757.04
Sri Lanka1 50.30 34.37 24.67 863.40
Bangladesh1 44.80 27.32 27.32 469.24
Nepal1 63.24 45.38 45.38 819.60
USA2 43.59 46.60 NA NA
France2 96.97 71.26 NA NA
Germany2 98.20 75.01 NA NA
United Kingdom2 98.67 84.64 NA NA
Italy2 98.53 75.40 NA NA
Sources:
1. Price of Pakistan, Sri Lanka, Bangladesh and Nepal are as per
Indian Oil Corporation Ltd.
2. Prices of Petrol and Diesel in USA, France, Germany, United Kingdom and
Italy are as per International Energy Agency (IEA) report “End-use petroleum
product prices and average crude oil import costs†for June 2011.
Retail selling prices of petroleum products in China and Malaysia are not available.
Whereas the retail selling prices of PDS Kerosene and Domestic LPG in India are the
lowest in comparison to neighboring countries, the retail selling price of Diesel is
comparable with prices in neighboring countries and much lower than the prices in
European countries.
(b): The prices of crude oil and petroleum products in the international market
fluctuate on daily basis depending on several factors including demand and supply
conditions in the world. The minimum, maximum and the annual average price of Indian
basket of crude oil in the international market during the last 3 years and the
current year (upto August 1, 2011) are given below:
($/barrel) Minimum Maximum Average
2008-09 35.83 142.04 83.57
2009-10 46.95 80.94 69.76
2010-11 68.06 113.09 85.09
2011-12 102.25 122.07 112.81
(upto
01.08.2011)
Since India imports about 83% of its crude oil requirements, the international
oil prices necessarily have a bearing on the domestic prices of petroleum products.
The Government does not have any control on the international prices of crude oil
and petroleum products. However, in spite of the rising international oil prices,
the domestic retail selling prices of sensitive petroleum products, such as Diesel,
PDS Kerosene and Domestic LPG in India are consciously being maintained at lower
levels. The details of the revision in the retail selling prices of Petrol, Diesel,
PDS Kerosene and Domestic LPG at Delhi during the last 3 years are given in the
Annexure.
(c) and (d): In view of the high level of international oil prices, the retail
selling prices of sensitive petroleum products in India have not been increased in
line with the movements in international oil prices as is reflected in the Table below:
Percentage increase in international oil prices and domestic retail selling prices of sensitive petroleum products
Period Indian Crude Basket Changes in Domestic Retail Selling Prices
Petrol Diesel PDS Domestic Kerosene LPG
May 2004 to 212% 89% 90% 65% 65%
July 2011
Based on the recommendations of the Kirit Parikh Committee, the Government has
made the price of Petrol market-determined both at the Refinery Gate and at the
Retail level with effect from 26.06.2010.Since then, the Public Sector Oil Marketing
Companies (OMCs) take appropriate decisions on the pricing of Petrol in line with the
international prices and market conditions.
However, the Government continues to modulate the retail selling prices of Diesel,
PDS Kerosene and Domestic LPG in order to insulate the common man from the impact of
rise in international oil prices and the domestic inflationary conditions. As a result,
the OMCs are currently incurring under-recoveries `6.06 per litre on Diesel, `23.74 per
litre on PDS Kerosene and `247 per cylinder of Domestic LPG.At these rates, the Public
Sector Oil Marketing Companies are incurring daily under-recovery of `246 crore and if
the average price of the Indian Basket of crude oil remains at around $110/bbl during
2011-12, their total under-recovery is expected to be of the order of `1,21,915 crore.
(e): To insulate the consumers from the high and volatile international oil prices,
the Government has eliminated 5% Customs Duty on crude oil with corresponding reduction
in Customs Duty on petro products and reduced Excise Duty on Diesel by `2.60 per litre
effective 25.06.2011. The remaining Excise Duty of `2.06 per litre on Diesel is earmarked
towards Road and Education cess.
