Lok Sabha Question No. 58 (UNSTARRED), answered on 2018-02-02
Subject: Excise Duty on Petrol
Ministry: FINANCE
Asked by: YERRAM VENKATA SUBBAREDDY

## Government of India Ministry of Finance Department of Revenue

## LOK SABHA UNSTARRED QUESTIONS NO. 58

TO BE ANSWERED ON FRIDAY, FEBRUARY 2, 2018 MAGHA  13, 1939 (SAKA)

## EXCISE DUTY ON PETROL

## 58. SHRI Y.V.SUBBA REDDY:

Will the Minister of FINANCE be pleased to state:

- (a) the details of taxes of Union and State Governments imposed on petroleum products during the last five years and the current year, product-wise and State and Union Government-wise;
- (b) whether recently Union has cut down excise duties on petrol and diesel, if so, the details thereof;
- (c) the efforts made by the Government to persuade States to reduce VAT and other duties on petrol and diesel;
- (d)  the  reaction  of  the  Government  with  regard  to  the  gradual  increase  in  the  production  of  crude  oil products and price of Indian basket in the last two years and the current year, month-wise; and
- (e) the revenue generated from petroleum products in the last four years and the current year, monthwise and company-wise?

## ANSWER MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHIV PRATAP SHUKLA)

- (a):      The  details  of  taxes  of  Union  Government  is  at  Annexure  -A.  Duty  rate  changes  on  petrol  and diesel by the Union Government in last five years is at Annexure-B.
- (b):    Union  Government  reduced  excise  duty  on  petrol  and  diesel  by  Rs.  2  Per  litre  on  04 th October, 2017.
- (c):    Hon'ble Finance Minister has requested to all the Chief Ministers of States to reduce burden of Value Added Tax (VAT) on Petroleum Products used as inputs in making of goods after the introduction of GST. It has also been requested to consider imposition of VAT rate not above 5% on natural gas used by manufacturers and a reasonable rate of VAT on other petroleum product like petrol and high speed diesel being used by manufacturers as inputs.
- (d): The Central Government reduced the Central Excise Duty on petrol and diesel by Rs.2 per liter effective from 4th October, 2017.  The measure was aimed to reduce the retail selling prices of petrol and diesel and give relief to the consumers.

The  Central  Government  also  requested  the  State  Governments  to  make  reduction  in  VAT imposed by them on petrol and diesel so as to give more relief to the consumers. Accordingly, 4 State Governments and 1 Union Territory have reduced the VAT on petrol and diesel.

- (e):  The details of revenue generated from petroleum products in the last four year and current year is at Annexure-C.

## Table I- Basic customs duty [BCD] on Petrol, High Speed Diesel, ATF, and other Natural Gas

| Particulars                 | Basic Customs Duty       |
|-----------------------------|--------------------------|
| Crude Petroleum             | NIL + Rs. 50/MT as NCCD* |
| Petrol                      | 2.5%                     |
| Petrol (branded)            | 2.5%                     |
| High Speed Diesel           | 2.5%                     |
| High Speed Diesel (branded) | 2.5%                     |
| Aviation Turbine Fuel       | Nil                      |
| Liquefied Natural Gas       | 2.5%                     |
| Natural Gas [Gasious state] | 5.0%                     |
| Natural Gas [Compressed]    | 5.0%                     |

## Table-II- Central Excise Duty on Petrol, High Speed Diesel, ATF, and other Natural Gas

|                             | Basic Excise Duty                  | Basic Excise Duty                  | Special Additional Excise Duty   | Additional Excise Duty (Road Cess)   | Additional Excise Duty (Road Cess)   | Additional Excise Duty (Road and Infrastructure Cess) (w.e.f. from 02.02.18)   |                                    |
|-----------------------------|------------------------------------|------------------------------------|----------------------------------|--------------------------------------|--------------------------------------|--------------------------------------------------------------------------------|------------------------------------|
| Particulars                 | Up to 01.02.18                     | w.e.f. from 02.02.18               | Special Additional Excise Duty   | Up to 01.02.18                       | w.e.f. from 02.02.18                 |                                                                                | Total                              |
| Crude Petroleum             | Nil+ Cess @20% + Rs.50/ MT as NCCD | Nil+ Cess @20% + Rs.50/ MT as NCCD | -                                | -                                    | -                                    | -                                                                              | Nil+ Cess @20% + Rs.50/ MT as NCCD |
| Petrol                      | Rs.6.48/ltr                        | Rs.4.48/ltr                        | Rs.7.00/ltr                      | Rs.6.00/l tr.                        | -                                    | Rs.8.00/ltr.                                                                   | Rs.19.48/ltr                       |
| Petrol (branded)            | Rs.7.66/ltr                        | Rs.5.66/ltr                        | Rs.7.00/ltr                      | Rs.6.00/l tr.                        | -                                    | Rs.8.00/ltr.                                                                   | Rs.20.66/ltr                       |
| High Speed Diesel           | Rs.8.33/ltr.                       | Rs.6.33/ltr.                       | Rs 1.00/ltr                      | Rs.6.00/l tr.                        | -                                    | Rs.8.00/ltr.                                                                   | Rs.15.33/ltr                       |
| High Speed Diesel (branded) | Rs.10.69/ltr                       | Rs.8.69/ltr                        | Rs 1.00/ltr                      | Rs.6.00/l tr.                        | -                                    | Rs.8.00/ltr.                                                                   | Rs.17.69/ltr                       |
| Aviation Turbine Fuel       | 14%                                | 14%                                | -                                | -                                    | -                                    |                                                                                | 14%                                |
| Liquefied Natural Gas       | Nil                                | Nil                                | -                                | -                                    | -                                    |                                                                                | Nil                                |
| Natural Gas [Gaseous state] | Nil                                | Nil                                | -                                | -                                    | -                                    |                                                                                | Nil                                |
| Natural Gas [Compressed]    | 14.0%                              | 14.0%                              | -                                | -                                    | -                                    |                                                                                | 14.0%                              |

## ANNEXURE-B

## Table-I (PETROL DUTY STRUCTURE SINCE 14.09.2012)

| Period                        | Central Excise duty                                                       | Central Excise duty                                                       |
|-------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------|
|                               | Petrol(unbranded)                                                         | Petrol(branded)                                                           |
| W.e.f. 14.09.2012- 10.07.2014 | Rs.9.20 per litre [Rs.1.20 BED+ Rs.6 SAED+ Rs.2 AED]                      | Rs.15.50 per litre [Rs.7.50 BED+ Rs.6 SAED+ Rs.2 AED]                     |
| W.e.f. 11.07.2014- 11.11.2014 | Rs.9.20 per litre [Rs.1.20 BED+ Rs.6 SAED+ Rs.2 AED]                      | Rs.10.35 per litre [Rs.2.35 BED+ Rs.6 SAED + Rs.2 AED]                    |
| W.e.f. 12.11.2014- 01.12.2014 | Rs.10.70 per litre [Rs.2.70 BED + Rs.6 SAED + Rs.2 AED]                   | Rs.11.85 per litre [Rs.3.85 BED + Rs.6 SAED + Rs.2 AED]                   |
| W.e.f. 02.12.2014- 01.01.2015 | Rs.12.95 per litre [Rs.4.95 BED + Rs.6 SAED + Rs.2 AED]                   | Rs.14.10 per litre [Rs.6.10 BED + Rs.6 SAED + Rs.2 AED]                   |
| W.e.f. 02.01.2015             | Rs.14.95 per litre [Rs.6.95 BED + Rs.6 SAED + Rs.2 AED]                   | Rs.16.10 per litre [Rs.8.10 BED + Rs.6 SAED + Rs.2 AED]                   |
| W.e.f. 16.01.2015             | Rs.16.95 per litre [Rs.8.95 BED + Rs.6 SAED + Rs.2 AED]                   | Rs.18.10 per litre [Rs.10.10 BED + Rs.6 SAED + Rs.2 AED]                  |
| W.e.f. 01.03.2015             | Rs.17.46 per litre [Rs.5.46 BED + Rs.6 SAED + Rs.6 AED]                   | Rs.18.64 per litre [Rs.6.64 BED + Rs.6 SAED + Rs.6 AED]                   |
| W.e.f. 07.11.2015             | Rs.19.06 per litre [Rs.7.06 BED + Rs.6 SAED + Rs.6 AED]                   | Rs. 20.24 per litre [Rs.8.24 BED + Rs.6 SAED + Rs.6 AED]                  |
| W.e.f. 17.12.2015             | Rs.19.36 per litre [Rs.7.36 BED + Rs.6 SAED + Rs.6                        | Rs. 20.54 per litre [Rs.8.54 BED + Rs.6 SAED + Rs.6                       |
| W.e.f. 01.01.2016             | AED] 19.73 [Rs.7.73 BED + Rs.6 SAED + Rs.6 AED]                           | AED] 20.91 [Rs.8.91 BED + Rs.6 SAED + Rs.6 AED]                           |
| W.e.f. 16.01.2016             | 20.48 [Rs.8.48 BED + Rs.6 SAED + Rs.6 AED]                                | 21.66 [Rs.9.66 BED + Rs.6 SAED + Rs.6 AED]                                |
| W.e.f. 01.02.2016             | 21.48 [Rs.9.48 BED + Rs.6 SAED + Rs.6 AED]                                | 22.66 [Rs.10.66 BED + Rs.6 SAED + Rs.6 AED]                               |
| W.e.f. 01.07.2017             | 21.48 [Rs.8.48 BED + Rs.7 SAED + Rs.6 AED]                                | 22.66 [Rs.9.66 BED + Rs.7 SAED + Rs.6 AED]                                |
| W.e.f. 04.10.2017             | 19.48 [Rs.6.48 BED + Rs.7 SAED + Rs.6 AED]                                | 20.66 [Rs.7.66 BED + Rs.7 SAED + Rs.6 AED]                                |
| W.e.f. 02.02.2018             | 19.48 [Rs.4.48 BED + Rs.7 SAED + Rs.8 AED (Road and Infrastructure Cess)] | 20.66 [Rs.5.66 BED + Rs.7 SAED + Rs.8 AED (Road and Infrastructure Cess)] |

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

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

- AED - Additional Excise Duty [levied under section 111 of the Finance (No.2) Act, 1998 Petrol and section 133 of the Finance Act, 1999 - Diesel]

AED (Road and Infrastructure Cess) - Additional Duty of Excise (Road and Infrastructure Cess) [levied under clause 110 of the Finance Bill, 2018]

In addition, Education / Secondary & Higher Education Cess @ 1% and 2% respectively of the  aggregate  of  duties  of  excise  are  leviable  on  both  unbranded  /  branded  petrol  was applicable till 28 th February, 2015.

## Table-II (DIESEL DUTY STRUCTURE SINCE 14.09.2012)

| Period                        | Central Excise Duty                                      | Central Excise Duty                                      |
|-------------------------------|----------------------------------------------------------|----------------------------------------------------------|
|                               | Diesel(unbranded)                                        | Diesel(branded)                                          |
| W.e.f. 14.09.2012- 11.11.2014 | Rs.3.46 per litre [1.46 BED + Rs. 2 AED]                 | Rs.5.75 per litre [3.75 BED + Rs.2 AED]                  |
| W.e.f. 12.11.2014- 01.12.2014 | Rs.4.96 per litre [Rs.2.96 BED + Rs.2 AED]               | Rs.7.25 per litre [Rs.5.25 BED + Rs.2 AED]               |
| W.e.f. 02.12.2014- 01.01.2015 | Rs.5.96 per litre [Rs.3.96 BED + Rs. 2 AED]              | Rs.8.25 per litre [Rs.6.25 BED + Rs. 2 AED]              |
| W.e.f. 02.01.2015             | Rs.7.96 per litre [Rs.5.96 BED + Rs.2 AED]               | Rs.10.25 per litre [Rs.8.25 BED + Rs.2 AED]              |
| W.e.f. 16.01.2015             | Rs.9.96 per litre [Rs.7.96 BED + Rs.2 AED]               | Rs.12.25 per litre [Rs.10.25 BED + Rs.2 AED]             |
| W.e.f. 01.03.2015             | Rs.10.26 per litre [Rs.4.26 BED + Rs.6 AED]              | Rs.12.62 per litre [Rs.6.62 BED + Rs.6 AED]              |
| W.e.f. 07.11.2015             | Rs.10.66 per litre [Rs.4.66 BED + Rs.6 AED]              | Rs.13.02 per litre [Rs.7.02 BED + Rs.6 AED]              |
| W.e.f. 17.12.2015             | Rs.11.83 per litre [Rs.5.83 BED + Rs.6 AED]              | Rs.14.19 per litre [Rs.8.19 BED + Rs.6 AED]              |
| W.e.f. 01.01.2016             | Rs.13.83 per litre [Rs.7.83 BED + Rs.6 AED]              | Rs.16.19 per litre [Rs.10.19 BED + Rs.6 AED]             |
| W.e.f. 16.01.2016             | Rs.15.83 per litre [Rs.9.83 BED + Rs.6 AED]              | Rs.18.19 per litre Rs. [12.19 BED + Rs.6 AED]            |
| W.e.f. 01.02.2016             | Rs.17.33 per litre [Rs.11.33 BED + Rs.6 AED]             | Rs.19.69 per litre [13.69 BED + Rs.6 AED]                |
| W.e.f. 01.07.2017             | Rs.17.33 per litre [Rs.10.33 BED + Rs.1 SAED + Rs.6 AED] | Rs.19.69 per litre [Rs.12.69 BED + Rs.1 SAED + Rs.6 AED] |

| W.e.f. 04.10.2017   | Rs.15.33 per litre [Rs.8.33 BED + Rs.1 SAED + Rs.6 AED]                                | Rs.17.69 per litre [Rs.10.69 BED + Rs.1 SAED + Rs.6 AED]                               |
|---------------------|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|
| W.e.f. 02.02.2018   | Rs.15.33 per litre [Rs.6.33 BED + Rs.1 SAED + Rs.8 AED (Road and Infrastructure Cess)] | Rs.17.69 per litre [Rs.8.69 BED + Rs.1 SAED + Rs.8 AED (Road and Infrastructure Cess)] |

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

- SAED - Special Additional Excise Duty [levied under section 147 of the Finance Act, 2002]
- AED - Additional Excise Duty [levied under section 111 of the Finance (No.2) Act, 1998 Petrol and section 133 of the Finance Act, 1999 - Diesel]

AED (Road and Infrastructure Cess) - Additional Duty of Excise (Road and Infrastructure Cess) [levied under clause 110 of the Finance Bill, 2018]

In addition, Education / Secondary & Higher Education Cess @ 1% and 2% respectively of the  aggregate  of  duties  of  excise  are  leviable  on  both  unbranded  /  branded  diesel  was applicable till 28 th February, 2015.

ANNEXURE-C

| Month-wise POL Revenue Gross Collection F. Y. 2013-14, 2014-15,2015-16, 2016-17 and 2017-18( April-December) (Rs.in crores)   | Month-wise POL Revenue Gross Collection F. Y. 2013-14, 2014-15,2015-16, 2016-17 and 2017-18( April-December) (Rs.in crores)   | Month-wise POL Revenue Gross Collection F. Y. 2013-14, 2014-15,2015-16, 2016-17 and 2017-18( April-December) (Rs.in crores)   | Month-wise POL Revenue Gross Collection F. Y. 2013-14, 2014-15,2015-16, 2016-17 and 2017-18( April-December) (Rs.in crores)   | Month-wise POL Revenue Gross Collection F. Y. 2013-14, 2014-15,2015-16, 2016-17 and 2017-18( April-December) (Rs.in crores)   | Month-wise POL Revenue Gross Collection F. Y. 2013-14, 2014-15,2015-16, 2016-17 and 2017-18( April-December) (Rs.in crores)   |
|-------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|
| Month                                                                                                                         | 2013-14                                                                                                                       | 2014-15                                                                                                                       | 2015-16                                                                                                                       | 2016-17                                                                                                                       | 2017-18                                                                                                                       |
| April                                                                                                                         | 6,353                                                                                                                         | 5,817                                                                                                                         | 13,136                                                                                                                        | 19,329                                                                                                                        | 27,580                                                                                                                        |
| May                                                                                                                           | 7,618                                                                                                                         | 7,457                                                                                                                         | 15,103                                                                                                                        | 21,403                                                                                                                        | 29,598                                                                                                                        |
| June                                                                                                                          | 7,394                                                                                                                         | 7,488                                                                                                                         | 14,543                                                                                                                        | 20,065                                                                                                                        | 12,296                                                                                                                        |
| July                                                                                                                          | 7,175                                                                                                                         | 7,283                                                                                                                         | 13,684                                                                                                                        | 20,250                                                                                                                        | 33,787                                                                                                                        |
| August                                                                                                                        | 7,289                                                                                                                         | 7,173                                                                                                                         | 12,494                                                                                                                        | 18,420                                                                                                                        | 20,574                                                                                                                        |
| September                                                                                                                     | 6,813                                                                                                                         | 6,729                                                                                                                         | 13,746                                                                                                                        | 18,095                                                                                                                        | 19,370                                                                                                                        |
| October                                                                                                                       | 7,183                                                                                                                         | 6,943                                                                                                                         | 13,917                                                                                                                        | 21,794                                                                                                                        | 19,029                                                                                                                        |
| November                                                                                                                      | 7,240                                                                                                                         | 7,687                                                                                                                         | 14,394                                                                                                                        | 22,914                                                                                                                        | 18,312                                                                                                                        |
| December                                                                                                                      | 7,762                                                                                                                         | 10,074                                                                                                                        | 15,861                                                                                                                        | 23,394                                                                                                                        | 21,046                                                                                                                        |
| January                                                                                                                       | 7,921                                                                                                                         | 12,578                                                                                                                        | 15,915                                                                                                                        | 23,158                                                                                                                        | -                                                                                                                             |
| February                                                                                                                      | 7,398                                                                                                                         | 11,879                                                                                                                        | 19,758                                                                                                                        | 19,134                                                                                                                        | -                                                                                                                             |
| March                                                                                                                         | 8,455                                                                                                                         | 14,545                                                                                                                        | 23,407                                                                                                                        | 25,299                                                                                                                        | -                                                                                                                             |
| Total                                                                                                                         | 88,600                                                                                                                        | 105,653                                                                                                                       | 185,958                                                                                                                       | 253,254                                                                                                                       | 201,592                                                                                                                       |