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Government of India
Ministry of Petroleum & Natural Gas
14-August-2012 17:13 IST
Indian Basket Crude Oil Prices in Re Terms Rise by 7% in 2012-13 Despite Fall IN Prices in Dollar Terms
*** Under-Recoveries Estimated at Rs 1, 55,074 Crore In 2012-13
The Minister of Petroleum and Natural Gas Shri S

 

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