Kerosene, domestic LPG prices lowest in India: Govt

Kerosene, domestic LPG prices lowest in India: Govt New Delhi: Kerosene and domestic LPG prices in India are the lowest in South Asia, while the rates for petrol and diesel are comparable with its neighbours, Petroleum Minister Murli Deora said on Thursday.

In a written reply to a question in the Lok Sabha, he said kerosene at Rs 9.22 per litre in Delhi is the cheapest cooking fuel in South Asia.

Kerosene in Pakistan costs Rs 34.89 a litre, Rs 30.53 in Bangladesh, Rs 21.26 in Sri Lanka and Rs 34.35 per litre in Nepal.

Similarly, a 14.2 kg domestic LPG cylinder in Delhi priced at Rs 281.20 is cheaper than Rs 483.06 in Pakistan, Rs 670.12 in Bangladesh, Rs 666.31 in Sri Lanka and Rs 702.72 per cylinder rate in Nepal, he said.

Petrol at Rs 44.63 in Delhi is costlier than Rs 36.52 a litre price in Pakistan but cheaper than Rs 51.36 a litre price in Bangladesh, Rs 54.19 in Sri Lanka and Rs 34.35 a litre in Nepal.

Deisel at Rs 32.87 per litre in Delhi was a shade higher than Rs 30.53 rate in Bangladesh and Rs 30.43 a litre price in Sri Lanka. But it was cheaper than Rs 36.82 a litre price in Pakistan and Rs 34.35 per litre rate in Nepal, he said.

"It may, therefore, be seen that whereas prices of PDS kerosene and domestic LPG in India are the lowest, prices of petrol and diesel are quite comparable to the neighbouring countries," he said adding prices differ because of tax rates.

Deora said as the costs of primary raw material -- crude oil are more or less uniform internationally, the rate of taxation in a country plays an important role in determining the retail price of petroleum products.

"Taxes and duties of the Centre and state governments constitute 48.4 percent and 24.5 percent of the retail prices of petrol and diesel respectively at Delhi," he said.

States sales tax or VAT on petrol varies from 18 to 33 percent and from 8.80 to 26 per cent on diesel.

"The Central Government on its part, has written to the chief ministers of all the state governments and the Finance Minister of West Bengal (who is the Chairman of the Empowered Committee of State Finance Ministers) recently, requesting them to rationalise sales tax/VAT on petrol and diesel so as to reduce the incidence of tax on oil prices," he said.

Of the Rs 44.63 a litre retail selling price of petrol in Delhi, Rs 13.75 is because of the incidence of excise duty and Rs 7.44 a litre due to sales tax. Similarly, the Rs 32.87 a litre price of diesel in Delhi is made up of Rs 3.90 in sales tax and Rs 3.71 in excise levy.

Bureau Report