Excise duty on petrol was Rs 9.48 per liter and on diesel Rs 3.56 before BJP came to power in 2014, before it increased to Rs 32.98 and Rs 31.83 respectively in May 2020, Parliament was informed on Monday.
Excise duty on petrol and diesel was cut by Rs 13 per liter and Rs 16 respectively between November 2021 and May 2022, according to a written reply by Minister of State for Petroleum and Natural Gas Rameshwar Teli.
He said the central government earned Rs 1.72 lakh crore in duties and taxes from the petroleum sector in the 2014-15 financial year, which increased to Rs 4.92 lakh crore in 2021-22.
The contribution of this sector to the states increased from Rs 1.6 lakh crore to Rs 2.82 lakh crore.
According to Teli’s reply, the central government’s income from the petroleum sector increased by 186 per cent during the seven-year period, while the states received 75 per cent more revenue from this sector.
The central government raised excise duty on petrol and diesel on 10 occasions between November 2014 and January 2016 to offset the gains from the fall in international oil prices.
Overall, the excise duty on petrol was increased by Rs 12 per liter and on diesel by Rs 13.77 per litre.
The government cut excise duty on petrol and diesel by Rs 2 per liter in October 2017. After a year, petrol was again cut by Rs 2 per liter and diesel by Rs 1.5.
But in July 2019, the tax was hiked by Rs 2 per litre, it showed.
When international oil prices crashed in 2020 after the start of the pandemic, the government raised excise duty on petrol by Rs 13 per liter and on diesel by Rs 16 in two installments between March 2020 and May 2020.
These hikes were rolled back in November 2021 and May 2022. According to the reply, the excise duty on petrol is now Rs 19.90 per liter and that on diesel is Rs 15.80.
“Petrol and diesel prices have been market-fixed with effect from June 26, 2020 and October 19, 2014, respectively. Since then, Public Sector Oil Marketing Companies (OMCs) take appropriate decisions on pricing of petrol and diesel,” Teli said in a separate reply.
The prices of petroleum products in the country are linked to the price of the respective products in the international market.
“The government has intervened by adjusting the rates of excise duty on these products as and when required,” he said, adding that the tax on petrol and diesel was reduced by Rs 5 and Rs 10 per liter with effect from November 4, 2021. , and Rs 8 and Rs 6 per liter respectively with effect from 22 May 2022.
Decreased as the rate of inflation and prices of daily essential commodities increased.
“The effect of increase/decrease in the prices of petrol and diesel can be assessed through their effect on inflation as measured by the Wholesale Price Index (WPI).
“Petrol, diesel and LPG have a weightage of 1.60 per cent, 3.10 per cent and 0.64 per cent respectively in the WPI index,” he said. PTI Aanj Anj Bal Bali
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