Question : Prices of Petrol-Diesel

(a) whether the Government has received complaints of inappropriate decisions taken by the Public Sector Oil Marketing Companies (OMCs) with respect to fixing prices of petrol and diesel in the country since deregulation of their prices;
(b) if so, the details thereof, State/ UT/ OMC-wise and the reasons therefor along with the action taken on such complaints;
(c) whether the Government has conducted any study to ascertain the impact of such inappropriate decisions on the profits of the said companies and on the common people, if so, the details and the outcomes/findings thereof;
(d) the role of the Government to keep a check on the wrong fixation of prices of petrol and diesel by OMCs in the country; and
(e) the other steps taken/being taken by the Government in this direction?

MINISTER OF PETROLEUM AND NATURAL GAS
(SHRI DHARMENDRA PRADHAN)
(a) to (e)
Prices of petrol and diesel have been made market-determined by the Government with effect from 26.06.2010 and 19.10.2014 respectively. Since then, the Public Sector Oil Marketing Companies (OMCs) take appropriate decision on pricing of petrol and diesel in line with international product prices and other market conditions. The OMCs have not only increased but also decreased the prices accordingly. Retail Selling Prices (RSP) of petrol and diesel in the country are linked to the international prices of petrol and diesel.
With an aim to reduce the prices of petrol and diesel and give relief to the consumers, the Central Government reduced the Central Excise duty on petrol and diesel by ` 2 per litre with effect from 4th October, 2017. The Central Government further reduced the Central Excise duty on petrol and diesel by ` 1.50 per litre with effect from 5th October, 2018 and Public Sector OMCs also reduced ` 1.00 per litre to reduce the overall price of petrol and diesel. The Central Government also requested the State Governments to make a reduction of ` 2.50 per litre in VAT imposed by them on petrol and diesel. Accordingly, 18 State Governments and 1 Union Territory have reduced VAT on petrol and diesel.
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