Petrol Rs 100/Litre: Tax Collection On Petrol, Diesel Increase By 88% To Rs 3.35 Lakh Crore!
The government saw a new high in petrol and diesel tax collections. It earned Rs 3.35 lakh crore in the year till Mar 31 after excise duty was raised to a record high of 88%.
The figure last year was Rs 1.78 lakh crore.
In 2018-19, excise collections on petrol and diesel were Rs 2.13 lakh crore.
Excise duty on petrol was raised from Rs 19.98 per litre to Rs 32.9 last year in order to compensate for losses due to international oil prices plunging to a multi-year low.
Excise duty on diesel was raised to Rs 31.8 from Rs 15.83 a litre, taking the total collection to Rs 3.35 lakh crore.
The figure would have been higher were it not for declining fuel sales due to nationwide lockdowns among other pandemic-induced restrictions.
Excise collections in April-June this year totalled Rs 1.01 lakh crore, which includes ATF, natural gas and crude oil as well, apart from petrol and diesel.
Minister of State for Petroleum and Natural Gas Rameswar Teli explained in the Lok Sabha, “Prices of petrol and diesel are market-determined with effect from June 26, 2010 and October 19, 2014 respectively.”
Since then, Public Sector Oil Marketing Companies (OMCs) have been taking appropriate decisions regarding pricing of petrol and diesel keeping in mind international product prices and other market conditions.
Prices Rise Across The Country
A hike in taxes last year did not result in any revision in retail prices as they got adjusted against the reduction that was warranted because of the fall in international oil prices.
But as demand returned international oil prices have soared, resulting in record high petrol and diesel prices across the country.
Over one-and-a-half dozen states and union territories have petrol at over Rs 100-a-litre mark and diesel is above that level in Rajasthan, Madhya Pradesh and Odisha.
Prices vary due to freight rates and VAT/local levies.
Teli said, “The impact of the increase in prices of petrol and diesel can be seen in their impact on inflationary trend measured by Wholesale Price Index (WPI).”
Price Hike Occasions
The weightage of petrol, diesel and LPG in the WPI index is 1.60%, 3.10% and 0.64% respectively.
Teli added that in the present fiscal, petrol price has been increased on 39 occasions and diesel on 36.
Whereas prices actually lowered on just one occasion and that of diesel on two occasions.
In comparison in 2020-21, petrol price was hiked on 76 occasions and cut on 10 while diesel rates went up 73 times and were reduced on 24 occasion.