Press Information Bureau

Government of India

Ministry of Commerce & Industry

13-August-2012 17:03 IST

Report of Tariff Commission

Tariff Commission had undertaken the study at the behest of Department of Expenditure and the report was sent to that Department on 4th January, 2012. A copy of the report was also sent to Ministry of Petroleum and Natural Gas on 13th June, 2012. The study brought out that the current methodology needs to be revised in the changed import/export scenario. With the methodology suggested in the study, there is no under recovery in the case of Motor Sprit and High Speed Diesel. However, under recovery for LPG and special kerosene oil is much reduced.

The Tariff Commission has sought concurrence of Ministry of Petroleum and Natural Gas for undertaking the similar cost based study of national oil and gas production companies like ONGC and OIL to assess the actual cost of production of crude oil and natural gas.

This information was given by the Minister of State for Commerce & Industry Shri Jyotiraditya M. Scindia in written reply to a question in Lok Sabha today.

DS/GK

Fuel pricing methodology revision: study finds no under recovery for motor spirit and diesel, reduced shortfall for other fuels. Tariff Commission's cost based study recommends a revised methodology for assessing fuel pricing under recovery, finding no under recovery for Motor Spirit and High Speed Diesel and notably reduced under recovery for Liquefied Petroleum Gas and Special Kerosene Oil; the Commission has sought concurrence to conduct a similar production cost study of national oil and gas companies to assess actual crude oil and natural gas production costs.