**Summary:**
This document summarizes the Indian government's response to Lok Sabha Unstarred Question No. 2078, addressed on August 1, 2025, regarding the increase in petrochemical prices. The Ministry of Chemicals and Fertilizers clarifies that the petrochemicals sector is delicensed and deregulated, with domestic prices determined by market dynamics and benchmarked against import prices. The government states that based on analysis of import prices over the last three years and the current year, there has not been a significant increase in the prices of major petrochemicals; import prices have generally shown a declining trend. The government believes that a competitive market environment prevents artificial price escalations, protecting the interests of various sectors and the common man. The response was provided by the Minister of State in the Ministry of Chemicals and Fertilizers, Smt. Anupriya Patel, in response to a question raised by Shri Jugal Kishore.
Key Entities Referenced
MINISTRY OF CHEMICALS AND FERTILIZERS: A ministry within the Government of India responsible for the chemical and fertilizer industries.
DEPARTMENT OF CHEMICALS AND PETROCHEMICALS: A department within the Ministry of Chemicals and Fertilizers, specifically focused on the chemicals and petrochemicals sector.
LOK SABHA: The lower house of the Parliament of India, where the question regarding petrochemical prices was raised.
SHRI JUGAL KISHORE: Member of Parliament who raised the unstarred question No 2078 regarding the increase in prices of petrochemicals.
SMT. ANUPRIYA PATEL: The Minister of State in the Ministry of Chemicals and Fertilizers who provided the answer to the Lok Sabha question.
Petrochemicals Sector: The industry involved in the production and processing of petrochemicals.
Import Prices: Prices of petrochemicals imported into the country, used as a benchmark for domestic prices.
GOVERNMENT OF INDIA
MINISTRY OF CHEMICALS AND FERTILIZERS
DEPARTMENT OF CHEMICALS AND PETROCHEMICALS
LOK SABHA
UNSTARRED QUESTION No – 2078
ANSWERED ON- 01/08/2025
INCREASE IN THE PRICES OF PETROCHEMICALS
2078. SHRI JUGAL KISHORE:
Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state?
(a) whether there has been a significant increase in the prices of petrochemicals during the last
three years and the current year and if so, the details thereof, year-wise;
(b) whether the Government has ascertained the impact of such increase in the prices of
petrochemicals on various products, sectors and packaging cost of consumer goods during the
said period and if so, the details thereof; and
(c) the corrective measures adopted by the Government to protect the interests of various sectors
and common man from such increase in the prices of petrochemicals?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS
(SMT. ANUPRIYA PATEL)
(a) to (c). The petrochemicals sector is delicensed, deregulated and the domestic prices of
petrochemicals are not controlled. The prices are determined by market dynamics. The industry
benchmarks the domestic prices with the import prices. Based on the analysis of import prices
during the last three years, it is observed that there has not been a significant increase in the
prices of major petrochemicals. The import prices of major petrochemicals have generally
shown a declining trend over the last three years and the current year. The competitive market
environment, helps in price discovery and prevents artificial price escalations.
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