New Delhi : The Minister of State for Petroleum and Natural Gas, Rameswar Teli in a written reply to a question in the Rajya Sabha today informed that the prices of petroleum products in the country are linked to the price of respective products in the international market. However, for domestic LPG the Government continues to modulate the effective price to consumer to insulate the common man from rise in international prices. The subsidy on the product increases/ decreases with the increase/ decrease in the product price in international market and decision of Government on subsidy.
The details of Domestic LPG prices since April 2019 at Delhi are at Annexure. The Government has released Rs. 24,172 crore and Rs. 11,895 crore in the FY 2019-20 and 2020-21 respectively as subsidy for various schemes related to domestic LPG.
Price of diesel has been market-determined with effect from 19.10.2014. Since then, the Public Sector Oil Marketing Companies (OMCs) take appropriate decision on pricing of diesel in line with international product prices, exchange rate, tax structure, inland freight and other cost elements.
The Central Government reduced the Central Excise duty on diesel by Rs.10 per litre effective from 4 November, 2021. The measure was aimed to give a further fillip to the economy and to boost consumption and keep inflation low, thus helping the poor and middle classes. Many States/UTs have also reduced the VAT on diesel subsequently.