Fuel Prices India
Part of: GIZ International Fuel Price database
Also see: India Energy Situation
Fuel Pricing Policies
| Local Currency: | INR |
| Exchange Rate: | 45.479
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| Last Update: | 2011/05/01 |
"Government heavily subsidizes the prices of LPG and kerosene for household use. Subsidized kerosene is rationed and distributed through the Public Distribution System, which also delivers subsidized food. Two separate government committees in 2006 and 2008 recommended moving away from subsidizing the kerosene price to cash transfer to the poor. In 2011, another proposal was made, shifting from a price subsidy to a monthly cash transfer of Rs. 300 (about US$6.50) delivered to women. As of 2010, there were 120 million LPG customers and 850 million cylinders in circulation. Government’s vision of covering 100% of population with gas has led to a target of adding another 50 million customers to increase coverage from 50% to 75%. The prices of non-branded diesel and at times non-branded gasoline have also been kept below market levels. Compensation for losses suffered by the three state-owned oil companies marketing subsidized fuels was Rs. 120,000 million (actual, US$2.5 billion) in fiscal 2009/10 (Apr–Mar), Rs. 350,000 million (actual, US$7.7 billion) in fiscal 2010/11, Rs. 650,000 million (revised budget, US$13.6 billion, up from Rs. 200,000 million originally budgeted) in fiscal 2011/12, and Rs. 400,000 million (original budget, US$7.7 billion as of Apr 2012) in fiscal 2012/13, apart from an additional US$0.6 billion set aside for LPG and kerosene in each fiscal year. In the first quarter of fiscal 2012/13, the three companies posted combined losses of Rs. 405 billion (US$7.5 billion) on fuel sales. Lack of timely reimbursement forces oil companies to borrow heavily. The petroleum ministry is piloting a biometric scheme for distribution of subsidized LPG. The 2012/13 budget looks to expand pilot programs, allowing eligible consumers to recoup LPG and kerosene subsidies via the Aadhaar platform (a 12-digit number which the Unique Identification Authority of India will issue for all residents in India). Government in Sep 2012 increased the price of diesel by Rs. 5 (US$0.09) a liter, steepest-ever once-time increase, and limited the number of subsidized LPG refills to six a year per household. The price of LPG outside the quota can be as high as triple the subsidized price."
(Source: Kojima, Masami. (2013, forthcoming). “Petroleum product pricing and complementary policies:Experience of 65 developing countries since 2009.” Washington DC: World Bank.)
Fuel Prices and Trends
| Gasoline 95 Octane | Diesel | |
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* benchmark lines: green=US price; grey=price in Spain; red=price of Crude Oil
Fuel Price Composition
Price composition for one litre of Gasoline 95 Octane.
For an assumed price of 58.90 INR.
At a Glance
| Regulation-Price-Matrix |
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Clear information on fuel price breakdown and pricing formula missing.
Sources to the Public
| Type of Information | Web-Link / Source |
|---|---|
| Other Information | http://petroleum.nic.in/ (GSI: Lessons Learned from Attempts to Reform India's Kerosene Subsidy) |
| Other Information | http://www.iisd.org/pdf/2010/lessons_india_kerosene_subsidy.pdf |
| Pump prices and margins | http://www.iocl.com (Indian Oil; retailer) |
| Pump prices and margins | http://petroleum.nic.in/petstat.pdf (Ministry report) |
Contact
Please find more information on GIZ International Fuel Price Database and http://www.giz.de/fuelprices
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