**Executive Summary**
This document is a response to Lok Sabha Unstarred Question No. 2206, concerning fuel price trends and supply in Punjab, to be answered on February 12, 2026. It provides details on the market-determined pricing of petrol and diesel, Central and State Government taxation, price interventions, and measures to ensure consistent fuel supply. The document also includes Retail Selling Prices (RSP) of Petrol and Diesel in Delhi and Punjab (Jalandhar) as of 06.02.2026.
**Key Points / Main Content**
* **Pricing and Taxation:**
* Petrol and diesel prices are market-determined by Public Sector Oil Marketing Companies (OMCs).
* Final selling prices include excise duty (Central Government) and VAT (State Governments).
* The Central Government reduced excise duty in November 2021 and May 2022.
* **Retail Selling Prices (RSP) as of 06.02.2026:**
* Delhi (New Delhi): Petrol RSP - ₹94.77/litre, Diesel RSP - ₹87.67/litre.
* Punjab (Jalandhar): Petrol RSP - ₹97.55/litre, Diesel RSP - ₹87.38/litre.
* **Government Interventions:**
* The Government has made fiscal interventions to calibrate the tax structure of petroleum products.
* Excise duty was increased in April 2025 by Rs. 2/litre each on petrol and diesel but was not passed to consumers.
* **Supply and Distribution:**
* Intra-state freight rationalisation has been implemented, reducing prices in remote areas.
* OMCs operate terminals/depots and retail outlets in Punjab to ensure consistent supply.
* Marketing Discipline Guidelines (MDG) are in place, and regular inspections are conducted to check for irregularities.
* The Motor Spirit and High Speed Diesel Order, 2005, provides for punitive action against malpractices.
* Universal Service Obligations (USOs) have been extended to all retail outlets to ensure quality and uninterrupted fuel supply.
**Impact Analysis**
**Consumers**
* **Impact:** Consumers are affected by market-determined fuel prices, which include taxes and can fluctuate based on global conditions. They have benefited from reduced prices in remote areas due to freight rationalisation.
* **Action Required:** Consumers should be aware of market dynamics and utilize available resources to make informed decisions.
**Transporters**
* **Impact:** Transporters are affected by market-determined fuel prices, which include taxes and can fluctuate based on global conditions.
* **Action Required:** Transporters should be aware of market dynamics and utilize available resources to make informed decisions.
**Public Sector Oil Marketing Companies (OMCs)**
* **Impact:** OMCs are responsible for setting prices based on market conditions and complying with government regulations and guidelines.
* **Action Required:** OMCs must adhere to MDG guidelines, conduct regular inspections, and ensure a consistent and uninterrupted fuel supply.
**State Governments**
* **Impact:** State Governments are responsible for setting VAT rates on fuel, which impacts the final selling price.
* **Action Required:** State Governments should consider the impact of their VAT policies on consumers.
Key Entities Referenced
Public Sector Oil Marketing Companies (OMCs): Entities responsible for pricing of petrol and diesel; taking appropriate decisions on pricing; have depots and retail outlets in Punjab.
Punjab: State where the fuel price trends and supply conditions are being discussed.
Value Added Tax (VAT): State tax on fuel, impacting retail prices.
Excise Duty: Central government tax on fuel, impacting retail prices.
Motor Spirit and High Speed Diesel (Regulation of Supply, Distribution and Prevention of Malpractices) Order, 2005: Order under Essential Commodities Act, 1955 for punitive action against malpractices in fuel supply and distribution.
LOK SABHA
UNSTARRED QUESTION NO. 2206
TO BE ANSWERED ON 12 FEBRUARY, 2026
Fuel Price Trends and Supply in Punjab
2206. SHRI CHARANJIT SINGH CHANNI:
पेट(cid:332)ोिलयम और (cid:366)ाकृ ितक गैस मं(cid:361)ी
Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:
(a) whether the Government has monitored the trends in petrol and diesel price and the supply
conditions in Punjab, where petrol prices have hovered around specific levels and daily dynamic
pricing continues to influence consumers;
(b) if so, the reasons for persistent volatility in fuel prices affecting citizens and transporters;
(c) whether any measures have been taken to stabilise fuel prices and ensure consistent supply
across Punjab, including stronger oversight on illicit or unauthorised fuel distribution; and
(d) if so, the outcomes of such measures and the details of price moderation or regulatory
interventions?
ANSWER
पेट(cid:332)ोिलयम और (cid:366)ाकृ ितक गैस मं(cid:361)ालय म(cid:336) रा(cid:475) मं(cid:361)ी
((cid:373)ी सुरेश गोपी)
MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS
(SHRI SURESH GOPI)
(a) to (d): Prices of petrol and diesel are market determined and Public Sector Oil Marketing
Companies (OMCs) take appropriate decision on pricing of petrol and diesel. The final selling
prices of petrol and diesel include excise duty fixed by the Central Government and State Value
Added Tax (VAT)/Taxes fixed by the respective State Governments. Central Government
uniformly decreased the prices across the country by reducing excise duty in November 2021
and May 2022 by Rs. 13/litre and Rs. 16/litre on petrol and diesel respectively. While most State
governments reduced VAT rate to provide further relief to citizens, some State Governments did
not.
The details of Retail Selling Prices (RSP) of Petrol and Diesel in Delhi and Punjab (Jalandhar) as
on 06.02.2026 are given below:
(Rs./Litre)
Petrol Diesel
State Reference City Excise Excise
VAT RSP VAT RSP
Duty Duty
Delhi New Delhi 21.90 15.40 94.77 17.80 12.83 87.67
Punjab Jalandhar 21.90 17.45 97.55 17.80 12.41 87.38
Source: Petroleum Planning and Analysis Cell (PPAC)Government have made fiscal interventions whenever necessary to calibrate the tax structure
applicable for petroleum products. In April 2025, excise duty on Petrol and Diesel was increased
by Rs. 2 per litre each but this was not passed on to consumers.
PSU OMCs have also carried out an intra-state freight rationalisation. This has benefitted
consumers located at remote areas, far from Petroleum Oil & Lubricants (POL) Depots in the
form of reduced Petrol and Diesel prices in remote parts within the states. This initiative has also
reduced the difference between the maximum and minimum retail prices of Petrol or Diesel
within a state. The prices of petrol and diesel in the States across the country vary due to
differing freight rates, VAT/local levies etc.
Public Sector Oil Marketing Companies (OMCs) have 10 Terminals/Depots (BPCL-4, HPCL-3,
IOCL-3) and 4061 number of Retail Outlets (BPCL-837, HPCL-1095, IOCL-2129) in the State
of Punjab to ensure uninterrupted and consistent supply of MS & HSD across Punjab.
PSU OMCS have formulated & implemented Marketing Discipline Guidelines (MDG) and
regular/surprise inspections are carried out by OMCs' officials periodically at the Retail Outlets
to check irregularities/ malpractices and action is taken in established cases as per the MDG and
the Dealership Agreement.
The Central Government has also issued the Motor Spirit and High Speed Diesel (Regulation of
Supply, Distribution and Prevention of Malpractices) Order, 2005 under Essential Commodities
Act, 1955 which provides for punitive action against malpractices. Further, in June, 2022, the
Government has extended the scope of Universal Service Obligations (USOs) to all retail outlets
including remote area retail outlets. USOS have been prescribed so that authorized entities
provide quality and uninterrupted fuel supply services to the consumers.
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