Excise on petrol, diesel gives govt Rs 94,181 crore in 3 months, Rs 3.35 lakh crore in FY21

News Network
July 19, 2021

New Delhi, July 19: The Union government has collected Rs 94,181 crore through levy of excise duty on petrol and diesel in the first three months of the current fiscal on the back of a record tax on fuel that yielded 88 per cent higher revenue than the previous financial year, the Lok Sabha was informed on Monday.

Excise duty on petrol was hiked from Rs 19.98 per litre to Rs 32.9 last year to recoup gain arising from international oil prices plunging to multi-year low as pandemic gulped demand.

The same on diesel was raised to Rs 31.8 from Rs 15.83 a litre, according to a written reply by Minister of State for Petroleum and Natural Gas Rameswar Teli in the Lok Sabha.

This led to excise collections on petrol and diesel jumping to Rs 3.35 lakh crore in 2020-21 (April 2020 to March 2021), from Rs 1.78 lakh crore a year ago, he said.

Collections would have been higher but for fuel sales falling due to lockdown and other restrictions imposed to curb the spread of the coronavirus pandemic, which muted economic activity and stalled mobility.

In the current fiscal starting April, where fuel sales were higher than the previous year, the collections have gone up.

"The total central excise duty collected on petrol and diesel from April to June 2021 (first quarter of FY22) is about Rs 94,181 crore," Minister of State for Finance Pankaj Choudhary said in reply to a separate question.

In 2018-19, excise collections on petrol and diesel were Rs 2.13 lakh crore.

Together with excise on other petro products such as ATF and natural gas, the total excise collections in April-June this year stood at Rs 1.01 lakh crore.

The total excise collection in FY21 was Rs 3.89 lakh crore. 

Choudhary said the average share of central excise duty on petroleum products in gross revenue collected by the Union government is 12 per cent.

"Prices of petrol and diesel are market-determined with effect from June 26, 2010, and October 19, 2014, respectively," Teli said.

Since then, the Public Sector Oil Marketing Companies (OMCs) have been taking appropriate decisions on the pricing of petrol and diesel on the basis of international product prices and other market conditions.

"The OMCs have increased and decreased the prices of petrol and diesel according to changes in international prices and rupee-dollar exchange rate," he said, adding that "effective June 16, 2017, daily pricing of petrol and diesel has been implemented in the entire country."

The 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 with the demand returning, international oil prices have soared, which have translated to record high petrol and diesel prices across the country. More than one-and-a-half dozen states and union territories have petrol at over Rs 100-a-litre and diesel is above that level in Rajasthan, Madhya Pradesh and Odisha.

Teli said prices vary from state to state due to freight rates and VAT/local levies.

"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)," he said. "The weightage of petrol, diesel and LPG in the WPI index is 1.60 per cent, 3.10 per cent and 0.64 per cent respectively."

He said during the current fiscal 2021-22, petrol price has been increased on 39 occasions and diesel on 36. The price of petrol has been cut on one occasion during this period and that of diesel on two occasions.

There was no change in the remaining days.

In the previous 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 occasions, his reply showed.

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News Network
May 8,2024

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Mangaluru: Congress leader and five-time Belthangady MLA K Vasanth Bangera, passed away on Wednesday, at a private hospital in Bengaluru on Wednesday. He was 79.

His health condition had worsened recently, and he was shifted to Bengaluru for treatment. His body is likely to be brought to Belthangady on May 9 and will be kept for public homage, family sources said.

He has the credit of contesting from all three parties - BJP, Janata Dal and Congress. Since 1983, he had contested nine assembly elections and won five times.

Bangera had entered the Legislative Assembly by winning Belthangady constituency as a BJP candidate in 1983 against Gangadhar Gowda of the Congress.

He won had the elections again in 1985 and later joined the Janata Dal. However, he lost the election against Gangadhar Gowda of Congress in 1989.

He became an MLA once again for the third time in 1994. In the 1999 election, Bangera lost to his brother Prabhakar Bangera who contested from BJP.

In 2008, Bangera joined the Congress and won the elections for the fourth time. In 2013, he had once again won the elections against Ranjan Gowda of the BJP, but he also lost the elections to sitting MLA Harish Poonja of the BJP in 2018.

He was born to Kede Subba Poojary and Devaki. He is survived by his wife Sujitha V Bangera, and two daughters Preethitha and Binutha.
 

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News Network
May 8,2024

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Congress leader Sam Pitroda has stepped down from the post of Chairman of the Indian Overseas Congress and his resignation was accepted by the party. Congress leader Jairam Ramesh took to X and announced that Sam Pitroda had decided to resign from the key post "of his own accord".

Pitroda had been under fire over his controversial remark that Indians in the East resemble the Chinese while those in the South look like Africans.

"We could hold together a country as diverse as India -- where people on East look like Chinese, people on West look like Arab, people on North look like maybe White and people in South look like Africans. It doesn't matter. We are all brothers and sisters," Pitroda said during an interview with The Statesman.

The Congress immediately distanced itself from Pitroda's remarks, terming them "unacceptable".

"The analogies drawn by Mr Sam Pitroda in a podcast to illustrate India's diversity are most unfortunate and unacceptable. The Indian National Congress completely dissociates itself from these analogies," Jairam Ramesh said in a post on X.

The BJP also hit out at the Congress over Pitroda's remarks and termed them "racist and divisive".

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News Network
May 10,2024

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The Supreme Court Friday granted interim bail to Delhi Chief Minister Arvind Kejriwal till June 1 in the excise policy case.

The top court, however, stated that it will be passing a detailed order over the matter soon.

On Thursday, the Enforcement Directorate had opposed the move to grant interim bail to Kejriwal saying that “any special concession” to him will “amount to anathema to the rule of law and equality… thereby creating two separate classes in the country viz. ordinary people, who are bound by the rule of law as well as the laws of the country, and politicians who can seek exemption from the laws”.

The ED had arrested Kejriwal on March 21 in the excise policy case.

“The right to campaign for an election is neither a fundamental right nor a constitutional right and not even a legal right,” the ED said, maintaining that to its knowledge, “no political leader has been granted interim bail for campaigning even though he is not the contesting candidate”.

After the ED filed its affidavit, the AAP, in a press release, said, “The legal team of Delhi Chief Minister and AAP National Convenor, Shri Arvind Kejriwal, has raised strong objection to the affidavit filed by the Enforcement Directorate opposing interim bail in the Supreme Court.”

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