Lok Sabha Question No. 1697 (UNSTARRED), answered on 2017-03-10
Subject: Taxes on Petrol/Diesel and CNG
Ministry: FINANCE
Asked by: SUNIL BALIRAM GAIKWAD, T. RADHAKRISHNAN, VIJAY KUMAR S.R., BIDYUT BARAN MAHATO, ASHOK SHANKARRAO CHAVAN, SUDHEER GUPTA, KUNWAR HARIBANSH SINGH, GAJANAN CHANDRAKANT KIRTIKAR, GOPALAKRISHNAN CHINNARAJ

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

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## LOK SABHA

## UNSTARRED QUESTION NO. 1697

## TO BE ANSWERED ON FRIDAY THE 10 TH  MARCH, 2017 PHALGUNA 19, 1938 (SAKA)

## TAXES ON PETROL/ DIESEL AND CNG

1697. DR. SUNIL BALIRAM GAIKWAD : SHRI T. RADHAKRISHNAN : SHRI S.R. VIJAYAKUMAR : SHRI BIDYUT BARAN MAHATO : SHRI ASHOK SHANKARRAO CHAVAN : SHRI SUDHEER GUPTA : KUNWAR HARIBANSH SINGH : SHRI GAJANAN KIRTIKAR : DR. C. GOPALAKRISHNAN :

Will the Minister of FINANCE be pleased to state:

- (a) the details of the breakup of taxes imposed on Petrol and Diesel prices along with the taxes collected from the consumers on one litre of petrol, diesel and CNG;
- (b) whether  the  tax  rates  on  petrol  and  diesel  in  the  country  are  higher  in comparison to  our  neighbouring  countries, if  so,  the  details  thereof  and  the reasons therefor;
- (c) whether  the  Government  proposes  to  reduce  the  taxes  on  the  petrol  and diesel; and
- (d) if so, the details thereof and if not, the reasons therefor?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE

(SHRI SANTOSH KUMAR GANGWAR)

(a)and (b): The present Customs and Central Excise duties on petrol and diesel are as under:

| Petroleum product   | Customs Duty   | Customs Duty   | Central Excise Duty                                      |
|---------------------|----------------|----------------|----------------------------------------------------------|
| Petroleum product   | BCD            | ACD            | Central Excise Duty                                      |
| Petrol (unbranded)  | 2.5%           | Rs.6 per litre | Rs.21.48 per litre [Rs.9.48 BED + Rs.6 SAED + Rs.6AED]   |
| Petrol (branded)    | 2.5%           | Rs.6 per litre | Rs.22.66 per litre [Rs.10.66 BED + Rs.6 SAED + Rs.6 AED] |

| Diesel (unbranded)   | 2.5%   | Rs.6 per litre   | Rs.17.33 per litre [Rs.11.33 BED + Rs.6 AED]   |
|----------------------|--------|------------------|------------------------------------------------|
| Diesel (branded)     | 2.5%   | Rs.6 per litre   | Rs.19.69 per litre [Rs.13.69 BED + Rs.6 AED]   |

BCD - Basic Customs Duty [levied under the Customs Tariff Act]

ACD -  Additional Duty of Customs [levied under section 103 of the Finance (No.2) Act,  1998(Petrol)  and  section  116  of  the  Finance  Act,  1999  (Diesel)],  commonly known as Road Cess.

BED - Basic Excise Duty [levied under the Central Excise Tariff Act]

SAED - Special Additional Excise Duty [levied under section 147 of the Finance Act, 2002]

AED - Additional duty of Excise [levied under section 111 of the Finance (No.2) Act, 1998(Petrol) and section 133 of the Finance Act, 1999 (Diesel)], commonly known as Road Cess.

Compressed Natural Gas (CNG) attracts a concessional rate of 5% Basic Customs Duty (BCD) and 14% Basic Excise Duty (BED).

The comparison of Retail Selling Price of Petrol and Diesel, as on 01.03.2017, with neighbouring countries is as under:-

| Country       |   Petrol (Rs./Ltr.) |   Diesel (Rs./Ltr.) |
|---------------|---------------------|---------------------|
| India (Delhi) |               71.14 |               59.02 |
| Pakistan      |               45.26 |               52.64 |
| Bangladesh    |               72.56 |               54.85 |
| Sri Lanka     |               51.69 |               41.97 |
| Nepal         |               64.23 |               49.04 |

(c): There is no such proposal under consideration at present.

(d): Does not arise in view of reply to part (c) above.

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