Executive Summary:
This document presents the Minister of Petroleum and Natural Gas's response to Lok Sabha Unstarred Question No. 1875 regarding rising petroleum product prices. It includes details on retail prices, reasons for price fluctuations, profits of oil and gas companies, the impact on inflation, and government measures. Data on prices and profits are provided for the period since 2015-16, with data up to July 2025 included.
Key Points / Main Content:
* **Retail Prices:**
* Yearly average retail selling prices (RSP) of Petrol, Diesel, and Domestic LPG at Delhi since 2015-16 are detailed in Annexure I.
* As of July 2025, the retail selling price of a 14.2 Kg domestic LPG cylinder is Rs. 853 in Delhi.
* **Pricing Mechanisms and Market Factors:**
* Petrol and diesel prices are market-determined by Public Sector Oil Marketing Companies (OMCs), linked to international market prices.
* India imports over 85% of its crude oil; crude oil prices have fluctuated due to geopolitical and market factors.
* Domestic petrol and diesel prices in Delhi decreased from November 2021 levels due to government and PSU OMCs' actions.
* Central Excise duty reductions on petrol and diesel in November 2021 and May 2022 were fully passed on to consumers, with some State Governments also reducing VAT.
* OMCs reduced retail prices of petrol and diesel by Rs. 2 per litre in March 2024, and excise duty increased by Rs. 2 per litre in April 2025 was not passed to consumers.
* **Government Measures:**
* The government has taken steps to mitigate high international prices, including diversifying crude import sources, using Universal Service Obligation, and increasing ethanol blending.
* The government is focused on augmenting domestic exploration and production of crude oil, promoting ethanol blending, and increasing renewable energy sources.
* **LPG Pricing and Subsidies:**
* Domestic LPG prices are linked to international market prices (Saudi CP benchmark).
* The effective price for Pradhan Mantri Ujjwala Yojana (PMUY) consumers for domestic LPG was reduced from Rs. 903 in August 2023 to Rs. 553 in July 2025.
* A targeted subsidy of Rs. 300/cylinder is provided to PMUY consumers, making the effective price Rs. 553 per cylinder in Delhi for 10.33 crore beneficiaries.
* **Impact on Inflation:**
* The impact of petrol, diesel, and LPG prices is assessed through their effect on the Wholesale Price Index (WPI).
* The weightage of petrol, diesel, and LPG in the WPI is 1.60, 3.10, and 0.64, respectively.
* **Company Profits:**
* Standalone Profit after Tax (PAT)/Loss details of public and private sector oil and gas companies since 2015-16 are in Annexure II.
Impact Analysis:
* **Consumers:**
* Impact: Affected by fluctuations in petrol, diesel, and LPG prices, influencing cost of living and inflation. Benefit from excise duty reductions, VAT reductions by some states, and the PMUY subsidy on LPG.
* Action Required: Stay informed about price changes and potential benefits from government initiatives.
* **Public Sector Oil Marketing Companies (OMCs):**
* Impact: Responsible for making pricing decisions based on market conditions and implementing government policies. Affected by changes in excise duties and VAT.
* Action Required: Implement government directives regarding price adjustments and subsidies.
* **Government:**
* Impact: Responsible for regulating fuel pricing, ensuring transparency, and providing relief to consumers. Affected by international crude oil prices and the need to balance revenue with affordability for citizens.
* Action Required: Monitor market conditions, adjust excise duties as needed, and implement policies to diversify energy sources and provide subsidies.
* **Oil and Gas Companies (Public and Private):**
* Impact: Profits are influenced by market prices, government regulations, and operational efficiency.
* Action Required: Adapt to market conditions, comply with government regulations, and focus on efficient operations.
* **Pradhan Mantri Ujjwala Yojana (PMUY) Beneficiaries:**
* Impact: Benefit from targeted subsidies on LPG cylinders, reducing the financial burden of cooking fuel.
* Action Required: Avail themselves of the subsidy and stay informed about eligibility criteria.
Key Entities Referenced
Petroleum and Natural Gas: The Ministry responsible for policies related to petroleum and natural gas in India.
Indian Oil Corporation: A major public sector oil and gas company in India.
Bharat Petroleum: A major public sector oil and gas company in India.
Hindustan Petroleum: A major public sector oil and gas company in India.
Reliance Industries: A major private sector oil and gas company in India.
Adani Total Gas Limited: A private sector oil and gas company in India.
Delhi: National capital territory of India, used as a reference for retail prices of petroleum products.
Pradhan Mantri Ujjwala Yojana PMUY: A government scheme focused on providing clean cooking fuel (LPG) to women from poor households.
LOK SABHA
UNSTARRED QUESTION NO. 1875
TO BE ANSWERED ON 31 JULY, 2025
Rising Prices of Petroleum Products
1875. Shri K Radhakrishnan:
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 annual retail prices of petrol, diesel and domestic Liquefied Petroleum Gas (LPG) across
the country during each of the last ten years;
(b) the reasons for the continuous rise in the prices of petroleum products despite fluctuations in
global crude oil prices;
(c) the details of the annual profits earned by major public sector and private sector oil and gas
companies including Indian Oil Corporation, Bharat Petroleum, Hindustan Petroleum, Reliance
Industries and Adani Total Gas Limited during the said period;
(d) whether the Government has conducted any study on the impact of rising fuel prices on
inflation and the cost of living for common citizens and if so, the outcome thereof; and
(e) whether the Government proposes any measures to regulate fuel pricing mechanisms, ensure
greater transparency and provide relief to consumers 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): The details of Yearly Average Retail Selling Prices (RSP) of Petrol, Diesel and Domestic
LPG (at Delhi) since 2015-16 are given at Annexure-I.
(b) to (e): 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 prices of petroleum products in the country are linked to the price of respective products in
the international market. India imports more than 85% of its crude oil requirements. Crude oil
prices (Indian basket) increased from $55/bbl (March 2015) to $113/bbl (March 2022) and
further to $116/bbl (June 2022) and have continued to fluctuate due to various geopolitical and
market factors, whereas domestically, Petrol and Diesel prices have come down to Rs. 94.77 and
Rs. 87.67 per litre respectively (Delhi prices) from Rs. 110.04 and Rs. 98.42 per litre in
November 2021 as a result of various steps taken by Government and PSU OMCs.
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. Some State Governments also reduced state VAT rates
to provide relief to citizens. In March, 2024, OMCs reduced the retail prices of petrol and diesel
by Rs. 2 per litre each. 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 recently carried out an intra-state freight rationalisation. This has benefitted
consumers located at remote areas, far from Petroleum Oil & Lubricants (POL) Depots in theform 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.
Government also took several other steps to insulate common citizens from high international
prices, which included diversifying the crude import basket, invoking the provisions of Universal
Service Obligation to ensure availability of petrol & diesel in domestic market, increasing the
blending of ethanol in petrol, etc.
The Government has taken several steps to control the impact of rising crude prices including
augmenting domestic exploration and production of crude oil, ethanol blending program,
improving the share of renewable sources in Indian energy basket etc.
India imports about 60% of the domestic LPG consumed. Price of LPG in the country is linked
to its price in the international market. While the average Saudi CP (international benchmark for
LPG pricing) rose by 51% (from US$ 385/MT in July 2023 to US$ 582/MT in June 2025), the
effective price for Pradhan Mantri Ujjwala Yojana (PMUY) consumers for domestic LPG was
reduced by 38% (from Rs. 903 in August 2023 to Rs. 553 in July 2025).
The retail selling price of a 14.2 Kg domestic LPG cylinder is currently Rs. 853 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.553 per cylinder (in Delhi). This is available to
about 10.33 crore Ujjwala beneficiaries, across the country.
The impact of increase/decrease in prices of petrol, diesel and LPG can be assessed through their
impact on inflation measured by Wholesale Price Index (WPI). The weightage of petrol, diesel
and LPG in the WPI index is 1.60%, 3.10% and 0.64% respectively.
The details of Standalone Profit after Tax (PAT) / Loss of Public & Private Sector companies in
the oil and gas sector, as compiled by PPAC since 2015-16 are given at Annexure-II.
*****Annexure-I
Annexure referred to in reply to Lok Sabha Unstarred Question No. 1875 asked by Shri K
Radhakrishnan to be answered on 31.07.2025 regarding “Rising Prices of Petroleum
Products”.
Retail selling Prices (at Delhi)
FY Petrol Diesel Domestic LPG
(Rs./Litre) (Rs./Litre) (Rs./14.2 KG cyl)
2015-16 61.59 47.01 586.09
2016-17 64.61 53.24 554.17
2017-18 69.2 58.78 657.41
2018-19 75.37 68.22 754.33
2019-20 72.69 65.78 688.03
2020-21 80.84 73.58 650.80
2021-22 98.05 87.42 866.85
2022-23 97.9 90.58 1,038.70
2023-24 96.63 89.53 979.23
2024-25 94.74 87.64 803.00
2025-26
94.77 87.67 847.26
(Till 23.07.2025)
Source: Petroleum Planning and Analysis Cell (PPAC)Annexure-II
Annexure referred to in reply to Lok Sabha Unstarred Question No. 1875 asked by Shri K
Radhakrishnan to be answered on 31.07.2025 regarding “Rising Prices of Petroleum
Products”.
Standalone Profit after Tax (PAT) / (Loss) of oil and gas companies
(Rs. in Crore)
Reliance Adani Total
FY IOCL BPCL HPCL
Industries Ltd. Gas
2015-16 11,242 7,056 3,725 27,426 *NA
2016-17 19,106 8,039 6,209 31,425 *NA
2017-18 21,346 7,919 6,357 33,612 165
2018-19 16,894 7,132 6,029 35,163 229
2019-20 1,313 2,683 2,637 30,903 436
2020-21 21,836 19,042 10,664 31,944 472
2021-22 24,184 11,363 6,383 39,084 505
2022-23 8,242 1,870 (8,974) 44,190 530
2023-24 39,619 26,674 14,694 42,042 653
2024-25 12,962 13,275 7,365 35,262 648
Source: as compiled by Petroleum Planning and Analysis Cell (PPAC)
*NA – Not available