The Minister of Petroleum and Natural Gas Shri S. Jaipal Reddy informed the
Rajya Sabha in a written
reply today that while the average price of crude oil in 2012-13 in the
international market has been slightly lower than the average crude oil price
during 2011-12, the price of crude oil during 2012-13 in Indian Currency has
increased by 7% over 2011-12 due to sharp depreciation in value of Rs against US $. The price of the Indian basket crude oil
during 2011-12 and 2012-13 (month wise) as well as the exchange rate of Rs/US$ is as follows:
Period
|
Average price of Indian Basket
Crude Oil
$ per barrel
|
Average Rs Per $
|
Average Indian Basket
Crude Oil
Rs per barrel
|
2011-12
|
111.89
|
47.95
|
5365
|
2012-13
|
-
|
-
|
-
|
Apr-12
|
117.97
|
51.80
|
6111
|
May-12
|
108.05
|
54.47
|
5885
|
Jun-12
|
94.51
|
56.03
|
5295
|
Jul-12
|
106.42
|
55.54
|
5910
|
Aug-12
|
105.85
|
55.58
|
5883
|
10th August-12
|
109.84
|
55.34
|
6078
|
Avarage in 2012-13*
|
105.22
|
54.64
|
5749
|
*Change in 2012-13 over
2011-12(approx.)
|
(-) 6%
|
14%
|
7%
|
*Average up to 10th August,2012
He added that it may therefore, be seen that though
the average price of Indian basket of crude oil in terms of dollar per barrel
this year is lower by 6% than the last year’s average price but simultaneously
due to depreciation in average value of Rupee per US dollar by 14%, the average
price of Indian basket of crude oil Rupee terms this year has indeed increased
by 7%.
Shri Reddy further stated that recently, in line with reduction in price of Petrol in
the international market, OMCs have reduced the price
of Petrol by Rs 2.02 per litre
effective 3rd June, 2012 and Rs 2.46 per litre effective 29th June, 2012 at Delhi. The
Minister informed out that as reported by Indian Oil Corporation Limited
(IOCL), due to rise in international price of Petrol, their under-recovery on
sale of Petrol is Rs 1.37 per litre
based on the Refinery Gate Price effective 1st August, 2012. The
price of Petrol has been made market-determined with effect from 26.6.2010.
Since then, the Public Sector Oil Marketing Companies (OMCs)
have been taking decision on the pricing of Petrol in line with the
international oil prices and market conditions.
He emphasized that n order to
insulate the common man from the impact of rise in international oil prices and
the domestic inflationary conditions, the Government continues to modulate the
retail selling price of Diesel, PDS Kerosene and Domestic LPG and their prices have not been increased in
line with changes in the international market. There has been no revision in
retail selling prices of these products since 25.06.2011. As a result, OMCs have incurred under-recovery of Rs
1, 38,541 crore during 2011-12 which was compensated
jointly by the Government and the upstream oil companies.
The Minister also said that during
the first quarter of 2012-13, OMCs have incurred an
under recovery of Rs 47,811 crore.
Based on the refinery gate price effective 1st August, 2012, the OMCs are currently incurring under-recovery of Rs 12.06 per litre on Diesel, Rs 28.54 per litre on PDS
kerosene and Rs 231.00 per cylinder on Domestic LPG.
Based on actual under-recoveries for the first quarter of 2012-13 and projected
under-recoveries for the remaining three quarters at current prices, OMCs are expected to incur an under-recovery of Rs 1,55,074 crore. Hence,
reduction in the price of Diesel, PDS Kerosene and Domestic LPG is not feasible
at present.
***
RCJ/RKS