Lok Sabha Question No. 1168 (UNSTARRED), answered on 2023-02-09
Subject: Fall in Brent Crude Oil Price
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Abdul Majeed Ariff

## LOK SABHA

## UNSTARRED QUESTION NO. 1168 TO BE ANSWERED ON 09 FEBRUARY, 2023

## Fall in Brent Crude Oil Price

1168. ADV. A.M. ARIFF:

## पेोलयम और ाक ृतक गैस मंी

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

- (a) whether it is true that the fall in Brent crude oil prices has drastically brought down the cost of 'Indian Basket' of crude oil and if so, the details thereof;
- (b) whether the Government intends to reduce the prices of petroleum products to pass on the benefit of price fall of crude oil to the consumers in the country and if so, the details thereof and if not, the reasons therefor; and
- (c) the monthly average price of Indian basket of crude oil along with the taxes imposed by the Union  Government  and  State  Governments  on  petrol,  diesel,  ATF,  domestic  LPG  cylinder during April, 2022 to February, 2023, State and product-wise?

## ANSWER

## पेोलयम और ाक ृतक गैस मंालय म राय मंी ( ी रामेश ् वर तेल )

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

(a)  to  (c):  The  prices  of  petrol  and  diesel  in  the  country  are  linked  to  the  prices  of  respective products in the international market and not on the Crude oil prices. While the crude oil prices have  declined  from  USD  84.67  /bbl  in  January  2022  to  USD  80.92/bbl  in  January  2023, international  product  prices  of  Petrol  have  slightly  gone  down  from  USD  96.16/bbl  to  USD 95.59/bbl and prices of diesel have increased from USD 97.09/bbl to USD 111.22/bbl during the corresponding period.  Retail prices of petrol and diesel in the domestic market have been made market-determined  with  effect  from  26.06.2010  and  19.10.2014  respectively.  Since  then,  the Public Sector Oil Marketing Companies (OMCs) take appropriate decision on pricing of petrol and diesel. As against the combined 'Profit Before Tax' of Rs. 28360 Crore in H1 of financial year 2021-22, the three OMCs viz. IOCL, BPCL and HPCL have booked a combined loss of Rs. 27276 Crore in H1 of current financial year 2022-23.

The average Saudi CP prices on which the domestic LPG prices are based, increased from US$ 454/MT to US$ 693/MT during 2019-20 to 2021-22.  During 2022-23 the average Saudi CP has further  risen  to  US$  710  /MT  till  February  2023.  The  price  of  Indian  Basket  of  Crude  also increased from an average of $ 60/bbl in 2019-20 to $79/bbl in 2021-22 and continues at the same elevated levels during 2022-23.

Due to high volatility  and  elevated  prices  of  crude  oil,  most  of  the  developed  countries  have been reeling under high Petrol and Diesel prices.  For example, in the US the prices of Petrol and Diesel increased by about 98% and 145% respectively over the period October 2020 to October 2022, whereas, prices in India (Delhi) increased only by 19 % and 27 % respectively during this period.

The Central Government has reduced Central Excise duty by a total of Rs. 13/ litre and Rs. 16/ litre  on  petrol  and  diesel  respectively  in  two  tranches  in  November  2021  and  May  2022.  The measure was aimed to give a further fillip to the economy and to boost consumption and keep inflation low, thus helping the poor and middle classes.

The details of various taxes and duties levied by the Central Government and State Governments on petrol, diesel , LPG and ATF  in the country is given as under: -

## Customs duty:

-  The Customs duty rates on petrol and diesel is 2.5 % plus 10% social welfare surcharge.
-  The rate of customs duty on ATF is 5%.

## Excise duty :

-  The Central Excise duty rates on petrol and diesel are given below:

(Rs. per litre)

| Effective Date   |   Petrol* |   Diesel |
|------------------|-----------|----------|
| 22/05/2022       |      19.9 |     15.8 |

*Note:  An additional Basic Excise duty @Rs 2/ltr has been levied on unblended petrol (not blended with ethanol or methonal) intended for retail sale w.e.f. 01.11.2022.

The excise duty is levied at 11% on ATF.

## Goods and Services Tax (GST):

GST is levied at 5% on domestic LPG.

## Value Added Tax (VAT) :

The  state-wise  details  of  VAT  /Sales  tax  on  petrol  and  diesel  as  on  03.02.2023  are  given  at Annexure-A.

The state-wise applicable VAT /Sales tax on ATF as on 01.01.2023 (as received from IOCL) are given at Annexure-B.

Annexure referred to in reply to parts (a) to (c) of Lok Sabha Unstarred Question No. 1168 asked by ADV. A.M. Ariff to be answered on 9 February 2023 regarding 'Fall in Brent Crude Oil Price'.

## Annexure-A

| Sr. No   | State/UT                                 | VAT/Sales Tax Rates as on 03 Feb 2023                                                    | VAT/Sales Tax Rates as on 03 Feb 2023                                                                                        |
|----------|------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------|
| Sr. No   | State/UT                                 | Petrol                                                                                   | Diesel                                                                                                                       |
| 1        | Andaman &Nicobar Islands                 | 1%                                                                                       | 1%                                                                                                                           |
| 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                        | 14.50%                                                                                   | 7.00%                                                                                                                        |
| 4        | Assam                                    | 20.67% or Rs.15.50 per litre whichever is higher                                         | 18.32% OR Rs. 11.50 per litre whichever is higher Rebate of Rs. 1.78 per litre subject to minimum tax of Rs. 11.50 per litre |
| 5        | Bihar                                    | 23.58% or Rs 16.65/Litre whichever is higher (30% Surcharge on VAT as irrecoverable tax) | 16.37% or Rs 12.33/Litre whichever is higher (30% Surcharge on VAT as irrecoverable tax)                                     |
| 6        | Chandigarh                               | Rs.10/KL cess +15.24% or Rs.12.42/Litre whichever is higher                              | Rs.10/KL cess + 6.66% or Rs.5.07/Litre whichever is higher                                                                   |
| 7        | Chhattisgarh                             | 24% VAT + Rs.2/litre VAT                                                                 | 23% VAT + Rs.1/litre VAT                                                                                                     |
| 8        | Dadra and Nagar Haveli and Daman and Diu | 12.75% VAT                                                                               | 13.50% VAT                                                                                                                   |
| 9        | Delhi                                    | 19.40% VAT                                                                               | Rs.250/KL air ambience charges + 16.75% VAT                                                                                  |
| 10       | Goa                                      | 20% VAT + 0.5% Green cess                                                                | 17% VAT + 0.5% Green cess                                                                                                    |
| 11       | Gujarat                                  | 13.7% VAT+ 4% Cess on Town Rate&VAT                                                      | 14.9% VAT + 4 %Cess on Town Rate&VAT                                                                                         |
| 12       | Haryana                                  | 18.20% or Rs.14.50/litre whichever is higher as VAT+5% additional tax on VAT             | 16.00% VAT or Rs.11.86/litre whichever is higher as VAT+5% additional tax on VAT                                             |
| 13       | Himachal Pradesh                         | 17.5% or Rs 13.50/Litre- whichever is higher                                             | 9.96% or Rs 7.40/Litre- whichever is higher                                                                                  |

|        | State/UT                                              | VAT/Sales Tax Rates as on 03 Feb 2023                                                                                            | VAT/Sales Tax Rates as on 03 Feb 2023                                                                                               |
|--------|-------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|
| Sr. No |                                                       | Petrol                                                                                                                           | Diesel                                                                                                                              |
| 14     | Jammu &Kashmir                                        | 24% MST+ Rs.2/Litre employment cess, Rebate of Rs.4.50/Litre                                                                     | 16% MST+ Rs.1.00/Litre employment cess , Rebate of Rs.6.50/Litre                                                                    |
| 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                                             | 25.92% sales tax                                                                                                                 | 14.34% 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                                                                         |
| 18     | Ladakh                                                | 15% MST+ Rs.5/Litre employment cess, Reduction of Rs.2.5/Litre                                                                   | 6% MST+ Rs.1/Litre employment cess , Reduction of Rs.0.50/Litre                                                                     |
| 19     | Lakshadweep                                           | 10% VAT                                                                                                                          | 10% VAT                                                                                                                             |
| 20     | Madhya Pradesh                                        | 29 %VAT+Rs.2.5/litre VAT+1%Cess                                                                                                  | 19% VAT+ Rs.1.5/litre VAT+1% Cess                                                                                                   |
| 21     | Maharashtra - Mumbai, Thane , Navi Mumbai &Aurangabad | 26% VAT+ Rs.5.12/Litre additional tax                                                                                            | 24% VAT                                                                                                                             |
| 22     | Maharashtra (Rest of State)                           | 25% VAT+ Rs.5.12/Litre additional tax                                                                                            | 21% VAT                                                                                                                             |
| 23     | Manipur                                               | 25% VAT                                                                                                                          | 13.5% VAT                                                                                                                           |
| 24     | Meghalaya                                             | 13.5% or Rs 12.50/Litre- whichever is higher (Rs.0.10/Litre pollution surcharge)                                                 | 5% or Rs 5.50/Litre- whichever is higher (Rs.0.10/Litre pollution surcharge)                                                        |
| 25     | Mizoram                                               | 16.36% VAT                                                                                                                       | 5.23% VAT                                                                                                                           |
| 26     | Nagaland                                              | 25% VAT or Rs. 16.04/litre whichever is higher +5% surcharge + Rs.2.00/Litre as road maintenance cess , Rebate Rs. 5.5 per litre | 16.50% VAT or Rs. 10.51/litre whichever is higher +5% surcharge + Rs.2.00/Litre as road maintenance cess , Rebate Rs. 5.1 per litre |
| 27     | Odisha                                                | 28% VAT                                                                                                                          | 24% VAT                                                                                                                             |
| 28     | Puducherry                                            | 14.55% VAT                                                                                                                       | 8.65% VAT                                                                                                                           |

| Sr.   | State/UT      | VAT/Sales Tax Rates as on 03 Feb 2023                                                                                                                                                          | VAT/Sales Tax Rates as on 03 Feb 2023                                                                                                                                                          |
|-------|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| No    |               | Petrol                                                                                                                                                                                         | Diesel                                                                                                                                                                                         |
| 29    | Punjab        | Rs.2050/KL (cess)+ Rs.0.10 per Litre (Urban Transport Fund) + 0.25 per Litre (Special Infrastructure Development Fee)+13.77% VAT plus 10% additional tax or Rs.12.50/Litre whichever is higher | Rs.1050/KL (cess) + Rs.0.10 per Litre (Urban Transport Fund) +0.25 per Litre (Special Infrastructure Development Fee) + 9.92% VAT plus 10% additional tax or Rs.8.24/Litre whichever is higher |
| 30    | Rajasthan     | 31.04% VAT+Rs 1500/KL road development cess                                                                                                                                                    | 19.30% VAT+ Rs.1750/KL road development cess                                                                                                                                                   |
| 31    | Sikkim        | 20% VAT+ Rs.3000/KL cess                                                                                                                                                                       | 10% VAT + Rs.2500/KL cess                                                                                                                                                                      |
| 32    | Tamil Nadu    | 13% + Rs.11.52 per litre                                                                                                                                                                       | 11% + Rs.9.62 per litre                                                                                                                                                                        |
| 33    | Telangana     | 35.20% VAT                                                                                                                                                                                     | 27% VAT                                                                                                                                                                                        |
| 34    | Tripura       | 17.50% VAT+ 3% Tripura Road Development Cess                                                                                                                                                   | 10.00% VAT+ 3% Tripura Road Development Cess                                                                                                                                                   |
| 35    | Uttar Pradesh | 19.36% or Rs 14.85/Litre whichever is higher                                                                                                                                                   | 17.08% or Rs 10.41/Litre whichever is higher                                                                                                                                                   |
| 36    | Uttarakhand   | 16.97% or Rs 13.14 Per Ltr whichever is greater                                                                                                                                                | 17.15% or 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 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- OMCs

Annexure referred to in reply to parts (a) to (c) of Lok Sabha Unstarred Question No. 1168 asked by ADV. A.M. Ariff to be answered on 9 February 2023 regarding 'Fall in Brent Crude Oil Price'.

Annexure 'B'

## VAT/Sales Tax Rates as on 01.01.2023

| State/UT         | ATF                                                                                                                                                                                       |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Sikkim           | 1.00%                                                                                                                                                                                     |
| West Bengal      | 25.00% + 20% Add. Tax on tax. For Bagdogra AFS- nil (No tax). 0.84%+20% Add. Tax on Tax for Flights under RCS w.e.f 21.09.2021.                                                           |
| Chandigarh       | 20.00% (MST:-Rs 10/- PER KL)                                                                                                                                                              |
| Himachal Pradesh | 17.5 %or Rs 13.5 per liter which ever is greater for defence and 2% for scheduled Airlines &non scheduled airlines                                                                        |
| J&K              | MST 1%                                                                                                                                                                                    |
| Punjab           | A) 4.00% + 10 %SURCHARGE ON TAX - When sold at Airports in Punjab to Scheduled& Non Scheduled Airlines carrying passengers, B)For others residual Rate is @13% + SURCHARGE ON TAX:-10.00% |
| Ladakh           | MST 1 %FOR CIVIL FLIGHTS 26.25 %FOR DEFENCE AND OTHERS                                                                                                                                    |
| Chhattisgarh     | 4.00%                                                                                                                                                                                     |
| Madhya Pradesh   | 4.00%                                                                                                                                                                                     |
| Karnataka        | 18.00%                                                                                                                                                                                    |
| Delhi            | 25.00%                                                                                                                                                                                    |
| Haryana          | For Passenger Flights = 1%, For Flights engaged in MROand adventure activities = 1% For others = 20%, Additional Tax on VAT 5%                                                            |
| Odisha           | 5.00%                                                                                                                                                                                     |
| Bihar            | 29.00% Gaya AFS- 4%                                                                                                                                                                       |
| Jharkhand        | 4.00%                                                                                                                                                                                     |

| Rajasthan                                | A) 26% , B) 5.50% when airlines maintan hub or connect two cities of Rajasthan C) 10.00% on Sale of ATF to any airline for use in aircraft which connects any city of Rajasthan (other than Jaipur) by a scheduled commercial flight                                                                                          |
|------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Uttar Pradesh                            | 1.00%                                                                                                                                                                                                                                                                                                                         |
| Assam                                    | 23.65%                                                                                                                                                                                                                                                                                                                        |
| Manipur                                  | 1.00%                                                                                                                                                                                                                                                                                                                         |
| Meghalaya                                | EXEMPT                                                                                                                                                                                                                                                                                                                        |
| Mizoram                                  | 1.00%                                                                                                                                                                                                                                                                                                                         |
| Nagaland                                 | 1%, Surcharge on tax 5%                                                                                                                                                                                                                                                                                                       |
| Tripura                                  | 1.00%                                                                                                                                                                                                                                                                                                                         |
| Arunachal Pradesh                        | 1.00%                                                                                                                                                                                                                                                                                                                         |
| Uttarakhand                              | 2.00%                                                                                                                                                                                                                                                                                                                         |
| Gujarat                                  | ATF duty paid:-5%                                                                                                                                                                                                                                                                                                             |
| UT of Dadra Nagar Haveli and Daman & Diu | 3.00%                                                                                                                                                                                                                                                                                                                         |
| Maharashtra                              | ATF - duty paid Mumbai Pune, Raigad:-25.00%, ATF - duty paid, except Mumbai Pune, Raigad 5.00%                                                                                                                                                                                                                                |
| Puducherry                               | 14.50%                                                                                                                                                                                                                                                                                                                        |
| Tamil Nadu                               | 29.00%                                                                                                                                                                                                                                                                                                                        |
| Kerala                                   | 5%, , cess 1% on tax Tiruvananthpuram AFS: Sales Tax 1% and Cess@ 1% on Sales Tax (w.e.f 01.04.2020 for 10 years). ATF to domestic airlines Ex-Nedumbassery AFS and Calicut AFS: Sales Tax 1% and Cess@1% effective from 14.08.2020 for 10 years Ex-Kannur AFS is with Sales tax 1% + 1% cess (w.e.f 03.11.2018 for 10 years) |
| Goa                                      | 18% Goa Green Cess- 0.50% on Turnover excluding VAT                                                                                                                                                                                                                                                                           |
| Andhra Pradesh                           | 1.00%                                                                                                                                                                                                                                                                                                                         |
| Telangana                                | 1.00%                                                                                                                                                                                                                                                                                                                         |
| Andaman &Nicobar Islands                 | 1.00%                                                                                                                                                                                                                                                                                                                         |

Source: IOCL