Lok Sabha Question No. 84 (STARRED), answered on 2021-07-26
Subject: Impact of Rising Fuel Prices
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Kumbakudi Sudhakaran, Pradyut Bordoloi

## LOK SABHA STARRED QUESTION NO. 84 TO BE ANSWERED ON 26 TH  July, 2021

## Impact of Rising Fuel Prices

## *84. SHRI KUMBAKUDI SUDHAKARAN: SHRI PRADYUT BORDOLOI:

## पेोलयमऔराकृ तकगैसमंी

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a)  whether  the  Ministry  has  assessed  the  impact  of  fuel  price  hikes  on  the  country's economic recovery from the COVID-19 pandemic;
- (b) if so, the details thereof and if not, the reasons therefor;
- (c)  whether  the  Ministry  has  assessed  the  recent  fuel  price  hikes  impact  on  increasing inflation;
- (d) if so, the details thereof and if not, the reasons therefor; and
- (e) the amount of taxes, cesses and excise duty collected by the Union Government on petrol and diesel from March 2020 till date, including the monthly details of collection, State-wise?

## ANSWER

पेोलयमऔराकृ तकगैसमंी ( ीहरदपसंहपुर )

## MINISTER OF PETROLEUM AND NATURAL GAS (SHRIHARDEEP SINGH PURI)

- (a) to (e): A statement is laid on the Table of the House.

Statement referred to in reply to parts (a) to (e) of Lok Sabha Starred Question No. 84 asked by Shri Kumbakudi Sudhakaran and Shri Pradyut Bordoloito be answered on 26 th July, 2021 regarding 'Impact of Rising Fuel Prices'.

(a) to (d): After the country wide lockdown imposed on 25 March, 2020, the consumption of petrol and diesel dropped to  20068 TMT during  April- June 2020 which was approximately 34% less than the consumption of the same period (30399 TMT) during previous  year  (2019)  .   As  the  lockdown  was  progressively  lifted  and  economic  activities resumed,  the  consumption  of  petrol  and  diesel  gradually  increased,  reaching  28410  TMT during January-March, 2021, which was approximately 106% of the consumption during the same period in 2019. Further, the consumption dropped with the restrictions imposed during the Second wave of Covid-19 in April- May, 2021, only to pick up again. By 21 July, 2021, the MS sales in July were 118.65% of the sales in the same time period in 2020, whereas they were 111.90% of the July 2020 sales for HSD.

The  weightage  of  petrol,  diesel  and  LPG  in  the  WPI  index  is  1.60%,  3.10%  and  0.64% respectively.

Prices  of  petrol  and  diesel  have  been  market-determined  with  effect  from  26.06.2010  and 19.10.2014 respectively. Since then, Public Sector Oil Marketing Companies (OMCs) have been taking appropriate decisions on pricing of petrol and diesel on the basis of international product prices and other market conditions.  The OMCs have increased and decreased  prices of petrol and diesel according to changes in international prices and rupee dollar exchange rate.

The Central Government levies Excise/Cess on Petrol of Rs.32.90/litre which includes Basic Excise Duty of Rs. 1.40, Road & Infrastructure Development Cess of Rs.18, Agriculture and Infrastructure Development Cess of Rs. 2.50 and Special Additional Excise Duty of Rs.11.

The  current  Central  Excise/Cess  on  Diesel  is  Rs.31.80/  litre  which  includes  Basic  Excise Duty  of  Rs.1.80,  Road  &  Infrastructure  Development  Cess  of  Rs.18,  Agriculture  and Infrastructure Development Cess of Rs. 4 and Special Additional Excise Duty of Rs. 8. The total excise duty/cess incidence as percentage of retail selling on petrol and diesel is 32.4% and 35.4% respectively, as on 16 th July 2021.

The  revenue  generated  by  taxation  is  used  in  various  developmental  schemes  of  the Government like Pradhan Mantri Gram Sadak Yojana (PMGSY), Pradhan Mantri Ujjawala

Yojana (PMUY), Ayushman Bharat, Pradhan Mantri Garib Kalyan Yojana (PMGKY) and also  to  provide  relief  to  the  poor  during  pandemic  by  schemes  like  Pradhan  Mantri  Garib Kalyan  Anna  Yojana  (PMGKAY)  under  which  free  ration  was  provided  to  80  crore beneficiaries during April, 2020 to November 2020 and May- June 2021, free vaccination for COVID - 19 etc.   Over the last 7 years, length of National Highways has gone up by 50% from  91,287  km  (as  of  April  2014)  to  1,37,625  km  (as  on  20  March  2021).  Highway construction per day in India increased almost 3 times from 12 km/day in 2014-15 to 33.7 km/day in 2020-21.

The cess is used for infrastructure development and also generates employment.

The State Governments levy VAT on the total amount of base price & Central Taxes of petrol &  diesel  which  vary  from  Rs.  4.83  in  Andaman  &  Nicobar  Islands  to  Rs.  29.55  in Maharashtra, Rs. 29.88 in Rajasthan,  Rs.31.55 in Madhya Pradesh for petrol and Rs.4.74 in Andaman & Nicobar Islands to Rs.21.82 in Rajasthan for diesel, as on 22.07.2021.

The State wise break up of variation in state levies and taxes on petrol and diesel Rs. /litre is at Annexure -1.

The State wise collection of Sales Tax/VAT on POL products is at Annexure -2

(e):     The details of central excise duty /cess on petrol and diesel are at Annexure-3

Annexure-1

Annexure referred to in reply to part (a) to (d) of Lok Sabha Starred Question No. 84 asked by Shri Kumbakudi Sudhakaran and Shri Pradyut Bordoloi to be answered on 26th July, 2021 regarding ' Impact of Rising Fuel Prices'

State wise break up of Variation in State Levies & Taxes

(Rs./Liter)

| S.No   | State                | Capital/ Reference City   | As on 01.07.2020 State Levies and Taxes   | As on 01.07.2020 State Levies and Taxes   | As on 22.07.2021 State Levies and Taxes   | As on 22.07.2021 State Levies and Taxes   | Variation State Levies and Taxes   | Variation State Levies and Taxes   |
|--------|----------------------|---------------------------|-------------------------------------------|-------------------------------------------|-------------------------------------------|-------------------------------------------|------------------------------------|------------------------------------|
| S.No   | State                | Capital/ Reference City   | Petrol                                    | Diesel                                    | Petrol                                    | Diesel                                    | Petrol                             | Diesel                             |
| 1      | Maharashtra          | Mumbai                    | 25.33                                     | 17.25                                     | 29.55                                     | 20.85                                     | 4.22                               | 3.60                               |
| 2      | NCT of Delhi         | Delhi                     | 18.56                                     | 18.83                                     | 23.50                                     | 13.14                                     | 4.94                               | -5.69                              |
| 3      | West Bengal          | Kolkata                   | 19.79                                     | 13.55                                     | 23.31                                     | 15.85                                     | 3.51                               | 2.30                               |
| 4      | Tamil Nadu           | Chennai                   | 21.80                                     | 16.14                                     | 24.26                                     | 17.79                                     | 2.46                               | 1.65                               |
| 5      | Telangana            | Hyderabad                 | 20.87                                     | 16.26                                     | 26.64                                     | 20.35                                     | 5.77                               | 4.08                               |
| 6      | Andhra Pradesh       | Vizag                     | 20.91                                     | 16.30                                     | 28.49                                     | 21.78                                     | 7.59                               | 5.48                               |
| 7      | Kerala               | Trivandrum                | 19.14                                     | 14.93                                     | 24.15                                     | 18.43                                     | 5.01                               | 3.50                               |
| 8      | Karnataka            | Bangalore                 | 20.67                                     | 14.40                                     | 26.38                                     | 18.00                                     | 5.71                               | 3.61                               |
| 9      | Puducherry           | Puducherry                | 19.10                                     | 15.13                                     | 22.56                                     | 15.61                                     | 3.45                               | 0.48                               |
| 10     | Meghalaya            | Shillong                  | 21.37                                     | 15.79                                     | 18.51                                     | 11.39                                     | -2.86                              | -4.40                              |
| 11     | Mizoram              | Aizwal                    | 14.89                                     | 8.77                                      | 18.99                                     | 10.96                                     | 4.10                               | 2.20                               |
| 12     | Arunachal Pradesh    | Itanagar                  | 12.43                                     | 7.75                                      | 15.75                                     | 9.65                                      | 3.32                               | 1.90                               |
| 13     | Manipur              | Imphal                    | 21.51                                     | 13.45                                     | 27.44                                     | 16.82                                     | 5.93                               | 3.37                               |
| 14     | Nagaland             | Kohima                    | 23.54                                     | 16.15                                     | 21.83                                     | 15.03                                     | -1.71                              | -1.12                              |
| 15     | Tripura              | Agartala                  | 17.23                                     | 12.17                                     | 22.00                                     | 15.23                                     | 4.77                               | 3.07                               |
| 16     | Assam                | Guwahati                  | 22.63                                     | 17.45                                     | 19.42                                     | 12.60                                     | -3.21                              | -4.85                              |
| 17     | Sikkim               | Gangtok                   | 18.10                                     | 11.45                                     | 22.25                                     | 13.69                                     | 4.15                               | 2.24                               |
| 18     | Andaman& Nicobar     | Portblair                 | 3.84                                      | 3.84                                      | 4.83                                      | 4.74                                      | 0.99                               | 0.91                               |
| 19     | Jharkhand            | Ranchi                    | 18.00                                     | 14.40                                     | 18.00                                     | 17.70                                     | 0.00                               | 3.30                               |
| 20     | Odisha               | Bhubaneshwar              | 18.84                                     | 16.73                                     | 24.04                                     | 20.93                                     | 5.21                               | 4.20                               |
| 21     | Bihar                | Patna                     | 21.25                                     | 15.57                                     | 25.77                                     | 18.66                                     | 4.53                               | 3.09                               |
| 22     | Madhya Pradesh       | Bhopal                    | 25.89                                     | 18.03                                     | 31.55                                     | 21.68                                     | 5.65                               | 3.65                               |
| 23     | Goa                  | Panjim                    | 15.12                                     | 13.54                                     | 20.81                                     | 17.69                                     | 5.69                               | 4.16                               |
| 24     | Gujarat              | Gandhinagar               | 15.90                                     | 15.98                                     | 20.14                                     | 19.89                                     | 4.25                               | 3.90                               |
| 25     | Chattisgarh          | Raipur                    | 16.78                                     | 16.01                                     | 20.87                                     | 19.79                                     | 4.09                               | 3.77                               |
| 26     | Dadra &Nagar Haveli  | Silvassa                  | 13.96                                     | 10.78                                     | 17.69                                     | 17.39                                     | 3.73                               | 6.61                               |
| 27     | Daman &Diu           | Daman                     | 13.95                                     | 10.76                                     | 17.67                                     | 17.37                                     | 3.72                               | 6.61                               |
| 28     | Chandigarh           | Chandigarh                | 15.39                                     | 10.07                                     | 19.48                                     | 12.53                                     | 4.09                               | 2.46                               |
| 29 30  | Haryana Punjab       | Ambala Jullandher         | 16.27 19.65                               | 10.64 12.19                               | 20.58                                     | 13.23                                     | 4.31                               | 2.59                               |
|        |                      |                           |                                           |                                           | 24.45                                     | 14.83                                     | 4.80                               | 2.63                               |
| 31     | Himachal Pradesh     | Shimla                    | 15.50                                     | 9.00                                      | 19.01                                     | 10.60                                     | 3.51                               | 1.60                               |
| 32     | UT of Jammu &Kashmir | Sri Nagar                 | 19.22                                     | 11.42                                     | 23.26                                     | 13.93                                     | 4.04                               | 2.51                               |
| 33     | Uttarakhand          | Dehradun                  | 19.00                                     | 10.49                                     | 19.00                                     | 13.13                                     | 0.00                               | 2.63                               |
| 34     | Uttar Pradesh        | Lucknow                   | 18.74                                     | 10.46                                     | 20.18                                     | 13.10                                     | 1.44                               | 2.64                               |
| 35     | Rajasthan            | Jaipur                    | 25.20                                     | 19.15                                     | 29.88                                     | 21.82                                     | 4.68                               | 2.67                               |
| 36     | UT of Ladakh         | Leh                       | 17.94                                     | 10.94                                     | 22.11                                     | 13.48                                     | 4.17                               | 2.54                               |

Annexure - 2

Annexure referred to in reply to part (a) to (d) of Lok Sabha Starred Question No. 84 asked by Shri Kumbakudi Sudhakaran and Shri Pradyut Bordoloi to be answered on 26 th July, 2021 regarding ' Impact of Rising Fuel Prices'

## State wise collection of Sales Tax/ VAT on POL products

Rs. crore

| State                              | 2019-20   | 2020-21   | Variation   |
|------------------------------------|-----------|-----------|-------------|
| West Bengal                        | 7,534     | 7,916     | 381         |
| Andaman &Nicobar islands           | 94        | 74        | -20         |
| Andhra Pradesh                     | 10,168    | 11,014    | 846         |
| Arunachal Pradesh                  | 26        | 104       | 78          |
| Assam                              | 3,641     | 3,747     | 106         |
| Bihar                              | 6,238     | 5,854     | -384        |
| Chandigarh                         | 60        | 60        | 0           |
| Chhattisgarh                       | 3,877     | 4,107     | 230         |
| Dadra &Nagar Haveli and Daman &Diu | 2         | 1         | 0           |
| Delhi                              | 3,833     | 2,653     | -1,180      |
| Goa                                | 754       | 682       | -72         |
| Gujarat                            | 15,337    | 15,141    | -196        |
| Haryana                            | 7,648     | 7,923     | 275         |
| Himachal Pradesh                   | 440       | 882       | 442         |
| Jammu &Kashmir                     | 1,459     | 1,444     | -15         |
| Jharkhand                          | 3,296     | 3,619     | 323         |
| Karnataka                          | 15,381    | 15,476    | 95          |
| Kerala                             | 8,074     | 6,924     | -1,150      |
| Ladakh                             | 14        | 49        | 35          |
| Lakshadweep                        | -         | -         | -           |
| Madhya Pradesh                     | 10,720    | 11,908    | 1,188       |
| Maharashtra                        | 26,791    | 25,430    | -1,361      |
| Manipur                            | 192       | 265       | 72          |
| Meghalaya                          | -         | -         | -           |
| Mizoram                            | 91        | 84        | -6          |
| Nagaland                           | 116       | 148       | 33          |
| Odisha                             | 5,495     | 6,224     | 729         |
| Puducherry                         | 5         | 10        | 5           |
| Punjab                             | 5,548     | 6,291     | 744         |
| Rajasthan                          | 13,319    | 15,119    | 1,800       |
| Sikkim                             | 129       | 111       | -19         |
| Tamil Nadu                         | 18,175    | 17,063    | -1,112      |
| Telangana                          | 10,045    | 8,691     | -1,355      |
| Tripura                            | 384       | 445       | 61          |
| Uttar Pradesh                      | 20,112    | 21,956    | 1,844       |
| Uttarakhand                        | 1,495     | 1,524     | 29          |
| Total                              | 2,00,493  | 2,02,937  | 2,444       |

## Annexure-3

Annexure referred to in reply to part (e) of Lok Sabha Starred Question No. 84 asked by  Shri  Kumbakudi  Sudhakaran  and  Shri  Pradyut  Bordoloi  to  be  answered  on  26 th July, 2021 regarding ' Impact of Rising Fuel Prices'.

| Effective   | Products   |   Basic Excise Duty | Additional Excise Duty   |   Road& Infrastructure Development Cess | Agriculture & Infrastructure Development Cess   |   Special Additional Excise Duty | Education Cess @3%   |   Total |
|-------------|------------|---------------------|--------------------------|-----------------------------------------|-------------------------------------------------|----------------------------------|----------------------|---------|
| 14.03.2020  | Petrol     |                2.98 | -                        |                                      10 | -                                               |                               10 | -                    |   22.98 |
| 06.05.2020  | Petrol     |                2.98 | -                        |                                      18 | -                                               |                               12 | -                    |   32.98 |
| 02.02.2021  | Petrol     |                1.4  | -                        |                                      18 | 2.50                                            |                               11 | -                    |   32.9  |
| 14.03.2020  | Diesel     |                4.83 | -                        |                                      10 | 0.00                                            |                                4 | -                    |   18.83 |
| 06.05.2020  | Diesel     |                4.83 | -                        |                                      18 | 0.00                                            |                                9 | -                    |   31.83 |
| 02.02.2021  | Diesel     |                1.8  | -                        |                                      18 | 4.00                                            |                                8 | -                    |   31.8  |

The excise duty/cess collected from petrol is Rs. 101598 crore and from diesel is Rs. 233296 crore during the financial year 2020-21.