Question : Increasing Prices of Petroleum Products

(a) whether it has come to the notice of the Government that the prices of petrol and
diesel are increasing;
(b) if so, the action taken to make available petrol and diesel at reasonable prices;
(c) whether it has come to the notice of the Government that the duties and taxes on
petrol and diesel are more than the cost thereof and if so, the action taken thereon;
(d) the details of the number of times the Government has increased the prices of
petroleum products like diesel, petrol and domestic LPG cylinder during the last six
months; and
(e) whether the Government has taken any steps to reduce the prices of petroleum products
and if so, the details thereof?

MINISTER OF PETROLEUM AND NATURAL GAS
(SHRIHARDEEP SINGH PURI)
(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. 3 asked
by Shri N.K. Premachandran and Shri K. Muraleedharan to be answered on 19th July,
2021 regarding “Increasing Prices of Petroleum Products”.
(a) & (b): Prices of petrol and diesel are 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 decision on pricing of petrol and diesel on the basis of international
product prices and other market conditions. . The OMCs have increased and decreased the prices
of petrol and diesel according to changes in international prices and rupee dollar exchange
rate.
(c): The price break up of Petrol and Diesel at Delhi as on 15th July 2021 is as under:
Particulars Unit Petrol Diesel
Base Price (including Dealers commission) Rs/Ltr 44.94 44.80
Add : Excise Duty (levied by the Centre Govt.) Rs/Ltr 32.90 31.80
Add : VAT (including VAT on Dealer Commission)
(levied by the State Govt.) Rs/Ltr 23.35 13.12
Retail Selling Price at Delhi Rs/Ltr 101.19 89.72
(d): The details of the number of times the prices of petrol, diesel and LPG has changed at Delhi
since 1st January, 2021 till 09th July, 2021 by OMCs are as under:
Petrol Diesel Domestic
LPG
Increase 63 61 5
Decrease 4 4 1
No Change 123 125 -
(e): The prices of petroleum products are linked to the price of respective products in the
international market. Oil Marketing Companies take a decision on retail selling price based on
various factors including international product prices, exchange rate, tax structure, inland freight
and other cost elements.
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