Lok Sabha Question No. 23 (UNSTARRED), answered on 2021-07-19
Subject: Taxes on Petroleum Products
Ministry: PETROLEUM AND NATURAL GAS
Asked by: M. K. Raghavan, Hanuman Beniwal, Su Thirunavukkarasar, S.R. Parthiban, Uttam Kumar Nalamada Reddy, Vijay Kumar, Achyutananda Samanta, S. Jothimani, Ravneet Singh, Mala Roy

## LOK SABHA UNSTARRED QUESTION NO. 23

## TO BE ANSWERED ON 19 TH  JULY, 2021

## Taxes on Petroleum Products

## 23. SHRI M.K. RAGHAVAN:

SHRI HANUMAN BENIWAL:

SHRI THIRUNAVUKKARASAR SU:

SHRI PARTHIBAN S.R.:

SHRI UTTAM KUMAR REDDY NALAMADA:

SHRI VIJAYAKUMAR (ALIAS) VIJAY VASANTH:

SHRI ACHYUTANANDA SAMANTA:

MS. S. JOTHIMANI:

SHRI RAVNEET SINGH BITTU:

SHRIMATI MALA ROY:

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

- (a) the price of petrol, diesel, LPG and other fuels in all the States/UTs during each week since 2019, along with the amount of price that is comprised of Central and State duties in each State, State-wise  especially  in  Telangana  including  the  taxes  being  levied  by  the  Government  on various petroleum products in the country;
- (b) the details of the number of times the petrol/ diesel prices have been increased in the last two years along with the quantum of increase in prices and the reasons for continuous increase in the prices of petrol/ diesel etc. across the country including Rajasthan inspite of drop in the prices of crude oil in the international market;
- (c) the details of monthly average price per barrel of international crude oil during the last three years,  year-wise  and  month-wise  along  with  the  details  of  price  at  which  petrol  has  been imported into the country since 2019;
- (d) average excise duty along with the other cess, duties levied on petrol and diesel during the last  three  years,  year-wise  and  month-wise  including  the  total  amount  collected  by  the  centre from taxes on fuels since 2019, year-wise;
- (e) whether it is a fact that the Monetary Policy Committee (MPC) headed by the Reserve Bank of  India  Government has recommended for cutting the taxes on petroleum products, if so, the details  thereof  and  the  reasons  for  non-implementation  of  these  recommendations  by  the Government;
- (f)  whether the Government proposes to introduce any concrete policy or take any decision to reduce the rising prices of petrol/diesel/LPG by discontinuing or reducing various types of taxes levied on the same to provide relief to the people of the country, if so, the time by which it will be implemented, if not, the reasons therefor; and
- (g) the details of hike in per litre dealer commission along with the total amount of tax/excise duty collected from oil company during the last 18 months, company-wise and month-wise?

## ANSWER

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## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI RAMESWAR TELI)

(a) to (d) & (g): Prices  of  petrol  and  diesel  are  market-determined  with  effect  from 26.06.2010 and 19.10.2014 respectively. Since then, the Public Sector Oil  Marketing Companies (OMCs) have been taking appropriate decision on 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.  Effective 16 th June,  2017,  daily  pricing  of  petrol  and  diesel  has been implemented in the entire country.  The prices of petrol in the States across the country varies due to freight rates, VAT/local levies etc.

The details of the Retail Selling Price (RSP) of petrol and diesel at Hyderabad, Telangana are at Annexure-1.

The details of number of times the prices of petrol, diesel and LPG have changed at Delhi from 1 st July, 2020 to 9 th July 2021are at Annexure-2.

The average monthly price of Indian Basket of crude oil since April, 2018 is at Annexure-3.

The details of total central excise duty including cesses on petrol and diesel and details central excise collected from petroleum products in the last three years are at Annexure-4.

The  State  wise  actual  rates  of  VAT  on  petrol  and  diesel  as  on  1st  April  2021are  given  as Annexure-5.

The details of hike in dealer commission on petrol and diesel during the last 18 months is given below:-

Rs./KL

| Effective date   | Petrol                                        | Diesel                                        |
|------------------|-----------------------------------------------|-----------------------------------------------|
| 1-Aug-17         | 2674.74/KL + 0.859% of billable product price | 2031.38/KL + 0.257% of billable product price |
| 19-Feb-19        | 2637.80/KL + 0.859% of billable product price | 2000.60/KL + 0.257% of billable product price |

- (e): Monetary Policy is dealt by Reserve Bank of India.
- (f): The excise duty rates on petrol and diesel have been calibrated to generate resources for infrastructure and other developmental items of expenditure keeping in view the present fiscal position.

x-x-x-x-x

Annexure referred to in reply to parts (a) to (d) & (g) of Lok Sabha Unstarred Question No. 23 asked by Shri M.K. Raghavan,  Shri  Hanuman  Beniwal,  Shri  Thirunavukkarasar  Su,  Shri  Parthiban  S.R.,  Shri  Uttam  Kumar  Reddy Nalamada, Shri Vijayakumar (alias) Vijay Vasanth, Shri Achyutananda Samanta, Ms. S. Jothimani, Shri Ravneet Singh Bittu and Shrimati Mala Roy to be answered on 19 th July, 2021 regarding 'Taxes on Petroleum Products'.

| Product      | 01- April, 2019   | 01- April, 2020   |   01- January, 2021 | 01- February, 2021   | 01- March, 2021   | 01- April, 2021   |   01- May, 2021 | 01- June, 2021   |   01- July, 2021 |
|--------------|-------------------|-------------------|---------------------|----------------------|-------------------|-------------------|-----------------|------------------|------------------|
| Petrol 77.26 | 73.97             | 87.06             |               89.77 | 94.79                |                   | 94.16 93.99       |           98.2  |                  |           102.69 |
| Diesel 71.81 | 67.82             | 80.60             |               83.46 |                      | 88.86             | 88.20             |           88.05 | 93.08            |            97.2  |
| LPG          | 762.00 796.50     |                   |              746.5  | 771.50*              | 871.50            | 861.50            |          861.5  | 861.50           |           887    |

*Data for 2021-22 is upto 13-Jul-21

## Annexure-2

Annexure referred to in reply to parts (a) to (d) & (g) of Lok Sabha Unstarred Question No. 23 asked by Shri M.K. Raghavan,  Shri  Hanuman  Beniwal,  Shri  Thirunavukkarasar  Su,  Shri  Parthiban  S.R.,  Shri  Uttam  Kumar  Reddy Nalamada, Shri Vijayakumar (alias) Vijay Vasanth, Shri Achyutananda Samanta, Ms. S. Jothimani, Shri Ravneet Singh Bittu and Shrimati Mala Roy to be answered on 19 th July, 2021 regarding 'Taxes on Petroleum Products'.

2019-20

| Particulars   |   Petrol |   Diesel |
|---------------|----------|----------|
| Increase      |       89 |       79 |
| Decrease      |      124 |      119 |
| No change     |      153 |      168 |
| Total         |      366 |      366 |

## 2020-21

| Particulars   |   Petrol |   Diesel |
|---------------|----------|----------|
| Increase      |       76 |       73 |
| Decrease      |       10 |       24 |
| No change     |      279 |      268 |
| Total         |      365 |      365 |

2021-22

| Particulars   |   Petrol |   Diesel |
|---------------|----------|----------|
| Increase      |       39 |       36 |
| Decrease      |        1 |        2 |
| No change     |       64 |       66 |
| Total         |      104 |      104 |

## Annexure-3

Annexure referred to in reply to parts (a) to (d) & (g) of Lok Sabha Unstarred Question No. 23 asked by Shri M.K. Raghavan,  Shri  Hanuman  Beniwal,  Shri  Thirunavukkarasar  Su,  Shri  Parthiban  S.R.,  Shri  Uttam  Kumar  Reddy Nalamada, Shri Vijayakumar (alias) Vijay Vasanth, Shri Achyutananda Samanta, Ms. S. Jothimani, Shri Ravneet Singh Bittu and Shrimati Mala Roy to be answered on 19 th July, 2021 regarding 'Taxes on Petroleum Products'.

| Month              | Indian Basket of Crude Oil ($/bbl)   |
|--------------------|--------------------------------------|
| Apr-18             | 69.22                                |
| May-18             | 75.25                                |
| Jun-18             | 73.83                                |
| Jul-18             | 73.47                                |
| Aug-18             | 72.53                                |
| Sep-18             | 77.88                                |
| Oct-18             | 80.08                                |
| Nov-18             | 65.40                                |
| Dec-18             | 57.77                                |
| Jan-19             | 59.27                                |
| Feb-19             | 64.53                                |
| Mar-19             | 66.74                                |
| Apr-19             | 71.00                                |
| May-19             | 70.01                                |
| Jun-19             | 62.37                                |
| Jul-19             | 63.63                                |
| Aug-19             | 59.35                                |
| Sep-19             | 61.72                                |
| Oct-19             | 59.70                                |
| Nov-19             | 62.53                                |
| Dec-19             | 65.50                                |
| Jan-20             | 64.31                                |
| Feb-20             | 54.63                                |
| Mar-20             | 33.36                                |
| Apr-20             | 19.90                                |
| May-20             | 30.61                                |
| Jun-20             | 40.63                                |
| Jul-20             | 43.35                                |
| Aug-20             | 44.19                                |
| Sep-20             | 41.35                                |
| Oct-20             | 40.66                                |
| Nov-20             | 43.34                                |
| Dec-20             | 49.84                                |
| Jan-21             | 54.79                                |
| Feb-21             | 61.22                                |
| Mar-21             | 64.73                                |
| Apr-21             | 63.40                                |
| May-21             | 66.95                                |
| Jun-21 (till 12 th | 71.98 74.34                          |

The  Indian  basket  of  Crude  Oil  represents  a  derived  basket  comprising  of  Sour  grade  (Oman  &  Dubai average) and Sweet grade (Brent Dated) of Crude oil processed in Indian refineries

Annexure referred to in reply to parts (a) to (d) & (g) of Lok Sabha Unstarred Question No. 23 asked by Shri M.K. Raghavan,  Shri  Hanuman  Beniwal,  Shri  Thirunavukkarasar  Su,  Shri  Parthiban  S.R.,  Shri  Uttam  Kumar  Reddy Nalamada, Shri Vijayakumar (alias) Vijay Vasanth, Shri Achyutananda Samanta, Ms. S. Jothimani, Shri Ravneet Singh Bittu and Shrimati Mala Roy to be answered on 19 th July, 2021 regarding 'Taxes on Petroleum Products'.

| Period            | Total Central Excise duty (Rs/litre)   | Total Central Excise duty (Rs/litre)   | Total Central Excise duty (Rs/litre)   | Total Central Excise duty (Rs/litre)   |
|-------------------|----------------------------------------|----------------------------------------|----------------------------------------|----------------------------------------|
|                   | Petrol (unbranded)                     | Petrol (branded)                       | Diesel (unbranded)                     | Diesel (branded)                       |
| W.e.f. 04.10.2017 | 19.48                                  | 20.66                                  | 15.33                                  | 17.69                                  |
| W.e.f. 02.02.2018 | 19.48                                  | 20.66                                  | 15.33                                  | 17.69                                  |
| W.e.f. 05.10.2018 | 17.98                                  | 19.16                                  | 13.83                                  | 16.19                                  |
| W.e.f. 06.07.2019 | 19.98                                  | 21.16                                  | 15.83                                  | 18.19                                  |
| W.e.f. 14.03.2020 | 22.98                                  | 24.16                                  | 18.83                                  | 21.19                                  |
| W.e.f. 06.05.2020 | 32.98                                  | 34.16                                  | 31.83                                  | 34.19                                  |
| W.e.f. 02.02.2021 | 32.90                                  | 34.10                                  | 31.80                                  | 34.20                                  |

Central excise duty collected from petroleum products are as under:

| Item              |   2018-19 |   2019-20 |   2020-21 |
|-------------------|-----------|-----------|-----------|
| Petrol            |     68929 |     66279 |    101598 |
| Diesel            |    144471 |    112032 |    233296 |
| ATF               |      2540 |      1461 |       779 |
| Natural Gas       |      1547 |      1573 |      1195 |
| Cess on crude oil |     17814 |     16500 |      7877 |
| Total             |    235301 |    197845 |    344746 |

Annexure referred to in reply to parts (a) to (d) & (g) of Lok Sabha Unstarred Question No. 23 asked by Shri M.K. Raghavan,  Shri  Hanuman  Beniwal,  Shri  Thirunavukkarasar  Su,  Shri  Parthiban  S.R.,  Shri  Uttam  Kumar  Reddy Nalamada, Shri Vijayakumar (alias) Vijay Vasanth, Shri Achyutananda Samanta, Ms. S. Jothimani, Shri Ravneet Singh Bittu and Shrimati Mala Roy to be answered on 19 th July, 2021 regarding 'Taxes on Petroleum Products'.

Statement of Actual rates of VAT/Sales Tax levied by various States/ UTs as on 01-Apr-21

|   Sr. No | State                                    | Petrol                                                                                        | Diesel                                                                                        |
|----------|------------------------------------------|-----------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|
|        1 | Andaman &Nicobar Islands                 | 6%                                                                                            | 6%                                                                                            |
|        2 | Andhra Pradesh                           | 31% VAT + Rs.4/litre VAT+Rs.1/litre Road Development Cess and Vat thereon                     | 22.25% VAT + Rs.4/litre VAT+Rs.1/litre Road Development Cess and Vat thereon                  |
|        3 | Arunachal Pradesh                        | 20.00%                                                                                        | 12.50%                                                                                        |
|        4 | Assam                                    | 32.66% or Rs.22.63 per litre whichever is higher as VAT minus Rebate of Rs.5 per Litre        | 23.66% or Rs.17.45 per litre whichever is higher as VAT minus Rebate of Rs.5 per Litre        |
|        5 | Bihar                                    | 26% or Rs 16.65/Litre whichever is higher (30% Surcharge on VAT as irrecoverable tax)         | 19% or Rs 12.33/Litre whichever is higher (30% Surcharge on VAT as irrecoverable tax)         |
|        6 | Chandigarh                               | Rs.10/KL cess +22.45% or Rs.12.58/Litre whichever is higher                                   | Rs.10/KL cess + 14.02% or Rs.7.63/Litre whichever is higher                                   |
|        7 | Chhattisgarh                             | 25% VAT + Rs.2/litre VAT                                                                      | 25% VAT + Rs.1/litre VAT                                                                      |
|        8 | Dadra and Nagar Haveli and Daman and Diu | 20% VAT                                                                                       | 20% VAT                                                                                       |
|        9 | Delhi                                    | 30% VAT                                                                                       | Rs.250/KL air ambience charges + 16.75% VAT                                                   |
|       10 | Goa                                      | 27% VAT + 0.5% Green cess                                                                     | 23% VAT + 0.5% Green cess                                                                     |
|       11 | Gujarat                                  | 20.1% VAT+ 4% Cess on Town Rate &VAT                                                          | 20.2% VAT + 4 %Cess on Town Rate &VAT                                                         |
|       12 | Haryana                                  | 25% or Rs.15.62/litre whichever is higher as VAT+5% additional tax on VAT                     | 16.40% VAT or Rs.10.08/litre whichever is higher as VAT+5% additional tax on VAT              |
|       13 | Himachal Pradesh                         | 25% or Rs 15.50/Litre- whichever is higher                                                    | 14% or Rs 9.00/Litre- whichever is higher                                                     |
|       14 | Jammu &Kashmir                           | 24% MST+ Rs.5/Litre employment cess, Reduction of Rs.0.50/Litre                               | 16% MST+ Rs.1.50/Litre employment cess                                                        |
|       15 | Jharkhand                                | 22% on the sale price or Rs. 17.00 per litre , which ever is higher + Cess of Rs 1.00 per Ltr | 22% on the sale price or Rs. 12.50 per litre , which ever is higher + Cess of Rs 1.00 per Ltr |
|       16 | Karnataka                                | 35% sales tax                                                                                 | 24% sales tax                                                                                 |
|       17 | Kerala                                   | 30.08% sales tax+ Rs.1/litre additional sales tax + 1% cess                                   | 22.76% sales tax+ Rs.1/litre additional sales tax + 1% cess                                   |

| Sr. No                                         | State                                          | Petrol                                                                                                                                                                     | Diesel                                                                                                                                                 |
|------------------------------------------------|------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
| 18                                             | Ladakh                                         | 24% MST+ Rs.5/Litre employment cess, Reduction of Rs.2.5/Litre                                                                                                             | 16% MST+ Rs.1/Litre employment cess , Reduction of Rs.0.50/Litre                                                                                       |
| 19                                             | Lakshadweep                                    | Nil                                                                                                                                                                        | Nil                                                                                                                                                    |
| 20                                             | Madhya Pradesh                                 | 33%VAT + Rs.4.5/litre VAT+1%Cess                                                                                                                                           | 23% VAT+ Rs.3/litre VAT+1% Cess                                                                                                                        |
| 21                                             | Maharashtra - Mumbai, Thane &Navi Mumbai       | 26% VAT+ Rs.10.12/Litre additional tax                                                                                                                                     | 24% VAT+ Rs.3.00/Litre additional tax                                                                                                                  |
| 22                                             | Maharashtra (Rest of State)                    | 25% VAT+ Rs.10.12/Litre additional tax                                                                                                                                     | 21% VAT+ Rs.3.00/Litre additional tax                                                                                                                  |
| 23                                             | Manipur                                        | 36.50% VAT                                                                                                                                                                 | 22.50% VAT                                                                                                                                             |
| 24                                             | Meghalaya                                      | 20% or Rs15.00/Litre- whichever is higher (Rs.0.10/Litre pollution surcharge)                                                                                              | 12% or Rs9.00/Litre- whichever is higher (Rs.0.10/Litre pollution surcharge)                                                                           |
| 25                                             | Mizoram                                        | 25% VAT                                                                                                                                                                    | 14.5% VAT                                                                                                                                              |
| 26                                             | Nagaland                                       | 25% VAT or Rs. 16.04/litre whichever is higher +5% surcharge + Rs.2.00/Litre as road maintenance cess                                                                      | 16.50% VAT or Rs. 10.51/litre whichever is higher +5% surcharge + Rs.2.00/Litre as road maintenance cess                                               |
| 27                                             | Odisha                                         | 32% VAT                                                                                                                                                                    | 28% VAT                                                                                                                                                |
| 28                                             | Puducherry                                     | 26% VAT                                                                                                                                                                    | 17.75% VAT                                                                                                                                             |
| 29                                             | Punjab                                         | Rs.2050/KL (cess)+ Rs.0.10 per Litre (Urban Transport Fund) +24.79% VAT+10% additional tax on VAT                                                                          | Rs.1050/KL (cess) + Rs.0.10 per Litre (Urban Transport Fund) + 15.94% VAT+10% additional tax on VAT                                                    |
| 30                                             | Rajasthan                                      | 36% VAT+Rs 1500/KL road development cess                                                                                                                                   | 26% VAT+ Rs.1750/KL road development cess                                                                                                              |
| 31                                             | Sikkim                                         | 25.25% VAT+ Rs.3000/KL cess                                                                                                                                                | 14.75% VAT + Rs.2500/KL cess                                                                                                                           |
| 32                                             | Tamil Nadu                                     | 15% + Rs.13.02 per litre                                                                                                                                                   | 11% + Rs.9.62 per litre                                                                                                                                |
| 33                                             | Telangana                                      | 35.20% VAT                                                                                                                                                                 | 27% VAT                                                                                                                                                |
| 34                                             | Tripura                                        | 25% VAT+ 3% Tripura Road Development Cess                                                                                                                                  | 16.50% VAT+ 3% Tripura Road Development Cess                                                                                                           |
| 35                                             | Uttar Pradesh                                  | 26.80% or Rs 18.74/Litre whichever is higher                                                                                                                               | 17.48% or Rs 10.41/Litre whichever is higher                                                                                                           |
| 36                                             | Uttarakhand                                    | 25% or Rs 19 Per Ltr whichever is greater                                                                                                                                  | 17.48% or Rs Rs 10.41 Per Ltr whichever is greater                                                                                                     |
| 37                                             | West Bengal                                    | 25% or Rs.13.12/litre whichever is higher as sales tax+ Rs.1000/KL cess- Rs.17/KL exemption - Rs 1000/KL sales tax rebate (20% Additional tax on VAT as irrecoverable tax) | 17% or Rs.7.70/litre whichever is higher as sales tax + Rs 1000/KL cess - Rs 1000/KL sales tax rebate (20% Additional tax on VAT as irrecoverable tax) |
| Source- (As per details provided by IOCL/HPCL) | Source- (As per details provided by IOCL/HPCL) | Source- (As per details provided by IOCL/HPCL)                                                                                                                             | Source- (As per details provided by IOCL/HPCL)                                                                                                         |