Parliament Question: Prices of Petrol, Diesel and LPG

LOK SABHA UNSTARRED QUESTION NO. 3433 TO BE ANSWERED ON 12 MARCH, 2026 Prices of Petrol, Diesel and LPG

3433. SHRI E T MOHAMMED BASHEER: 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) the steps being taken by the Government in the short term to keep petrol, diesel and LPG prices stable for domestic consumers despite fluctuations in global crude oil prices; and

(b) whether the Government plans to use measures such as changes in taxes, subsidies or fuel reserves to prevent sudden price hikes and if so, the details thereof? 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) & (b): Prices of petrol and diesel in the country are market-determined and the Public Sector Oil Marketing Companies (OMCs) take appropriate decision on pricing of petrol and diesel.

Government makes fiscal interventions whenever necessary to calibrate the tax structure applicable for petroleum products. Central Excise duty was reduced by the Central Government by a total of Rs. 13/litre and Rs. 16/litre on petrol and diesel respectively in two tranches in November 2021 and May 2022, which was fully passed on to consumers. In March, 2024, OMCs reduced the retail prices of petrol and diesel by Rs. 2 per litre each. But in April 2025, when excise duty on Petrol and Diesel was increased by Rs. 2 per litre each it was not passed on to consumers.

The retail selling price of a 14.2 Kg domestic LPG cylinder is currently Rs. 913 in Delhi. After a targeted subsidy of Rs. 300/cylinder to PMUY consumers, Government of India is providing

14.2 Kg LPG cylinders at an effective price of Rs. 613 per cylinder (in Delhi) to all eligible PMUY beneficiaries.

Government has paid a compensation of Rs. 22,000 crore to OMCs in FY 2022-23 and has approved another compensation of Rs. 30,000 crore in FY 2025-26.

To augment domestic LPG availability, the Ministry directed all domestic/SEZ refineries and petrochemical complexes to channel C3 and C4 streams towards LPG production and supply the same exclusively to PSU OMCs, in exercise of powers under Section 3 of the Essential Commodities Act, 1955 read with Clauses 3 and 5 of the Petroleum Products (Maintenance of Production, Storage and Supply) Order, 1999.

Government of India, through a Special Purpose Vehicle called Indian Strategic Petroleum Reserve Limited (ISPRL), has established Strategic Petroleum Reserves (SPR) facilities with total capacity of 5.33 Million Metric Tonnes (MMT) of crude oil.

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