Lok Sabha Question No. 1728 (UNSTARRED), answered on 2024-08-01
Subject: Taxation from Sale of Fuel
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri Deepender Singh Hooda

## LOK SABHA UNSTARRED QUESTION NO. 1728 TO BE ANSWERED ON 01 AUGUST, 2024

## Taxation from Sale of Fuel

1728 Shri Deepender Singh Hooda:

## पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũी

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

- (a) the details of the amount collected as Central Excise, VAT and Cess per litre sale of Diesel, Petrol and Aviation Turbine Fuel (ATF) in Delhi;
- (b) the details of revenue collected by the Government from central excise duty and Cess from sale  of  Diesel,  Petrol  and  Aviation  Turbine  Fuel  (ATF)  during  each  of  the  last  five  Financial Years (FYs) including the FY 2024-25;
- (c) the details of gain in revenue to the Government by way of withdrawal of Subsidy on LPG cylinders in FY 2020-21, FY 2021-22, FY 2022-23 and FY 2023-24; and
- (d) the details of increase in central excise duty and Cess on sale of petrol, diesel during the last five years?

## ANSWER

## पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũालय मŐ राǛ मंũी ( ŵी सुरे श गोपी )

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI SURESH GOPI)

## (a) to (d): Petrol and Diesel

The details of revision in Excise duty rates (including cess and surcharge) on Petrol and Diesel which is levied uniformly across the country including Delhi, since 2019-20 are as below:

| Effective Date   |   Petrol (Rs/Ltr) |   Diesel (Rs. /Ltr) |
|------------------|-------------------|---------------------|
| As on 01.04.2019 |             17.98 |               13.83 |
| 06.07.2019       |             19.98 |               15.83 |
| 14.03.2020       |             22.98 |               18.83 |
| 06.05.2020       |             32.98 |               31.83 |
| 02.02.2021       |             32.9  |               31.8  |
| 04.11.2021       |             27.9  |               21.8  |
| 22.05.2022       |             19.9  |               15.8  |

Source: Petroleum Planning & Analysis Cell (PPAC)

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

The details of VAT /Sales tax on Petrol and Diesel and ATF at Delhi as on 01.07.2024 are as follows:

(Rate per litre)

| Petrol   | Diesel                                       |
|----------|----------------------------------------------|
| 19.40%   | 16.75% plus Rs. 250 per KL Air Ambience Cess |

There is currently Nil Excise duty on export of petrol and diesel.

## Aviation Turbine Fuel (ATF)

The excise duty is levied at 11% on Aviation Turbine Fuel (ATF). However, Excise Duty is 2% in  place  of  11%,  for  supply  to  Scheduled  Commuter  Airlines  (SCA)  from  the  regional connectivity scheme (RCS) airports.

VAT /Sales tax on ATF at Delhi is levied at 25% per litre as on 01.07.2024 and currently there is Nil excise duty on export of ATF.

## LPG:

India imports more than 60% of its domestic LPG consumption. Prices of LPG in the country are linked to its price in the international market. Government continues to modulate the effective price to consumer for domestic LPG. During the period 2020-21 to 2022-23, the average Saudi CP  (international  benchmark  for  LPG  pricing)  went  up  from  $415  per  MT  to  $712  per  MT. However, the increase in the international prices was not fully passed on to the customers.

Under PAHAL Scheme, the domestic LPG cylinders are sold at non-subsidised price and the applicable subsidy to the consumers is transferred directly into their bank accounts. Apart from the direct subsidy to consumers, the OMCs have also been compensated Rs 22,000 crore in FY 2022-23 by Government of India to cover the under-recoveries suffered by them in not passing on the high international LPG prices to the domestic LPG consumers.

Government reduced the retail selling price of domestic LPG for all consumers by Rs. 200 per 14.2 Kg LPG cylinder with effect from 30 th August, 2023. Government further reduced the RSP of domestic LPG by Rs. 100 per 14.2 Kg cylinder w.e.f. 9 th March, 2024. The current RSP of domestic LPG at Delhi is Rs. 803 per 14.2 Kg cylinder.

W.e.f. 21 st May, 2022, Government has been providing a targeted subsidy of Rs. 200 per 14.2 Kg LPG cylinder for Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries for upto 12 refills a year. Moreover, w.e.f.  5 th October, 2023, Government increased the targeted subsidy to Rs. 300 per 14.2 Kg LPG cylinder for all Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries. With a targeted  subsidy  of  Rs.  300  per  cylinder  (and  proportionately  prorated  for  5  Kg  cylinder), effective cost for PMUY consumers is Rs. 503 per 14.2 Kg cylinder (at Delhi) currently.

During  Covid-19  pandemic,  as  a  pro-poor  initiative,  Government  announced  a  scheme  for providing upto 3 (three) free of cost LPG refills to Ujjwala beneficiaries w.e.f. 01.04.2020 under the Pradhan Mantri Garib Kalyan Package (PMGKP). OMCs transferred Rs.  9670.41 crore to bank accounts of PMUY beneficiaries for buying LPG refills and PMUY beneficiaries availed 14.17 crore refills under the Scheme.

Government continues to provide subsidy on domestic LPG for PMUY beneficiaries. The details of subsidy on domestic LPG since 2020-21 are given below:

| Financial Year   | Subsidy^ (Rs. in Crore)   |
|------------------|---------------------------|
| 2020-21          | 11896 #                   |
| 2021-22          | 1811                      |
| 2022-23          | 6965 @                    |
| 2023-24 (P)      | 11444                     |

Source: Petroleum Planning and Analysis Cell (PPAC) and Indian Petroleum and Natural Gas Statistics (IPNG)

The  details  of  contribution  of  petroleum  sector  to  exchequer  for  the  last  5  years  are  given  at Annexure.

x-x-x-x-x

Annexure referred to in reply to Lok Sabha Unstarred Question No. 1728 asked by Shri Deepender Singh Hooda to be answered on 01.08.2024 regarding 'Taxation from Sale of Fuel'.

## Contribution of petroleum sector to exchequer

(Rs. in Crore)

| Particulars                                                | 2019-20   | 2020-21   | 2021-22   | 2022-23   | 2023-24 (P)   |
|------------------------------------------------------------|-----------|-----------|-----------|-----------|---------------|
| Exchequer A. Tax/ Duties on Crude oil & Petroleum products |           |           |           |           |               |
| Cess on Crude Oil                                          | 14,789    | 10,676    | 19,214    | 21,445    | 19,580        |
| Royalty on Crude Oil / Natural Gas                         | 5,602     | 3,590     | 5,639     | 9,822     | 9,286         |
| Customs Duty                                               | 22,927    | 13,514    | 11,423    | 14,985    | 13,134        |
| NCCD on Crude Oil                                          | 1,130     | 1,016     | 1,121     | 1,192     | 1,191         |
| Excise Duty                                                | 2,23,057  | 3,72,970  | 3,63,305  | 2,87,575  | 2,73,684      |
| Service tax                                                | 17        | 1         | -         | -         | -             |
| IGST                                                       | 13,099    | 11,594    | 19,726    | 22,236    | 20,930        |
| CGST                                                       | 6,831     | 6,158     | 10,843    | 13,012    | 12,230        |
| Others                                                     | 88        | 365       | 338       | 59        | 51            |
| Sub Total (A)                                              | 2,87,540  | 4,19,884  | 4,31,609  | 3,70,326  | 3,50,086      |
| B. Dividend to Government/ Income tax etc.                 |           |           |           |           |               |
| Corporate/ Income Tax                                      | 23,134    | 21,909    | 29,219    | 33,292    | 57,493        |
| Dividend income to Central Govt.                           | 12,270    | 10,393    | 22,612    | 15,673    | 19,310        |
| Dividend distribution tax                                  | 5,462     | -         | -         | -         | -             |
| Profit Petroleum on exploration of Oil/ Gas                | 5,909     | 2,883     | 8,862     | 8,776     | 5,505         |
| Sub Total (B)                                              | 46,775    | 35,185    | 60,694    | 57,741    | 82,308        |
| 1. Total Contribution to Central Exchequer (A+B)           | 3,34,315  | 4,55,069  | 4,92,303  | 4,28,067  | 4,32,394      |
| 2. Total Contribution to State Exchequer                   | 2,21,055  | 2,17,650  | 2,82,122  | 3,20,651  | 3,18,762      |
| Petroleum Sector to Exchequer                              | 5,55,370  | 6,72,719  | 7,74,425  | 7,48,718  | 7,51,156      |

The above is based on data provided to Petroleum Planning and Analysis Cell (PPAC) by 15 major oil & gas  companies.  The  amount  reported  by  the  companies  to  PPAC  is  the  consolidated  amount  of  all taxes/cess/ duties /GST etc. for crude oil and petroleum products.

(P) - Provisional