- Prices of petrol, diesel, LPG, kerosene, and aviation turbine fuel (ATF) fixed by the Government of India.
- Idea first proposed – by PV Narasimha Rao Govt
- ‘R-committee’ – Reform Committee – under the chairmanship of petroleum secretary Vijay Kelkar
- Why – to create roadmap for APM dismantling
- 17 June 1997 – Gujral Govt sets in motion the dismantling process.
- July 1975 to March 2002 – dismantled on 1st April 2002 – by Vajpayee Govt.
- Average crude price when APM was dismantled (March 2002) – $23 per barrel.
Various oil pool accounts were created to meet the APM targets.
- To keep consumers insulated from fluctuating international prices.
- GOI subsidy with fixed prices and price stability trend.
- Cross subsidy in domestic LPG and Kerosene prices to lower prices even further.
Led to Partial Price Deregulation
- Tied to changes in the international prices of the commodities.
- But with a fixed amount of subsidy from the GOI.
26 June 2010
- Petrol prices were deregulated.
19 October 2014
- Diesel prices were deregulated.
TIED WITH FLUCTUATING INTERNATIONAL PROCESS AND RUPEE/DOLLAR EXCHANGE RATE.
16 June 2017
- Daily price revision of petrol and diesel prices.
- Full dismantling of petrol and diesel prices.