Lok Sabha Question No. 4456 (UNSTARRED), answered on 2016-08-12
Subject: Excise/Custom Duties on Petroleum Products
Ministry: FINANCE
Asked by: P. KARUNAKARAN

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

*****

## LOK SABHA

## UNSTARRED QUESTION NO.4456

## TO BE ANSWERED ON FRIDAY THE 12 TH   AUGUST, 2016 SHRAVANA 21, 1938 (SAKA)

## EXCISE/CUSTOM DUTIES ON PETROLEUM PRODUCTS

## 4456. SHRI P. KARUNAKARAN:

Will the Minister of FINANCE be pleased to state:

- (a)  whether  excise  and  custom  duties  collection  from  the  petroleum  sector  has increased over the last three years;
- (b) if so, the details thereof along with the annual break-up;
- (c)  the  reasons  for  variations  in  excise  and  customs  duty  collection  from  the petroleum sector;
- (d)  whether  the increase in the  collection  of duties  for  petrol  and  diesel has  made any impact on the Government subsidy to oil companies; and
- (e) if so, the details thereof and the subsidy disbursed to oil companies during the last three years?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI SANTOSH KUMAR GANGWAR)

(a), (b) & (c): The revenue collection from Cess on indigenously produced crude oil [levied and  collected  as  a  duty  of  excise  under  the  Oil  Industry  (Development)  Act,  1974]  and Central  Excise  duties  on  major  petroleum  products  in  the  last  three  financial  years  is  as under:

| All figures in Rs. Crore                       | All figures in Rs. Crore   | All figures in Rs. Crore   | All figures in Rs. Crore   |
|------------------------------------------------|----------------------------|----------------------------|----------------------------|
| Goods                                          | F.Y. 2013-14               | F.Y. 2014-15               | F.Y. 2015-16               |
| Cess on crude oil                              | 17, 331                    | 14,013                     | 14,577                     |
| Petrol                                         | 22,424                     | 30,826                     | 53,413                     |
| Diesel                                         | 27,146                     | 42,464                     | 1,01,177                   |
| Petroleum Gases and other gaseous hydrocarbons | 1,613                      | 1,998                      | 1,898                      |

The Central Excise revenue collections from Petrol and Diesel have shown an increasing trend  on  account  of,  inter  alia,  increase  in  the  rates  of  Basic  Excise  Duty  (BED)  since November, 2014.

The revenue from Customs duties on crude and major petroleum products in the last three financial years is as under:

| Crore Goods                      | F.Y. 2013-14   | F.Y. 2014-15   | All figures in Rs. F.Y. 2015-16   |
|----------------------------------|----------------|----------------|-----------------------------------|
| Crude Oil                        | 433            | 423            | 456                               |
| Refined Petroleum Oils           | 2,862          | 3,042          | 5,768                             |
| Other Mineral Fuels, Oils, Waxes | 9,083          | 9,107          | 8,978                             |

(d): The prices of Petrol and Diesel have been made market determined by the Government effective 26 th June, 2010 and 19 th October, 2014 respectively. Since then, the Public Sector Oil Marketing Companies (OMCs) take appropriate decision on pricing of Petrol and Diesel in line with their international prices and other market conditions and after deregulation no subsidy is being given on these products.

(e): The  cash  assistance provided  by  the Government  to the  Public  Sector  Oil  Marketing Companies (OMCs) on account of subsidy/under-recovery incurred on sale of Diesel (upto 18.10.2014), PDS Kerosene and Domestic LPG since 2013-14 is as under:

| Financial   | Total Under recovery/Subsidy   | All figures in Rs. Crore Government Share   |
|-------------|--------------------------------|---------------------------------------------|
| 2013-14     | 1,46,339                       | 77,242                                      |
| 2014-15     | 76,308                         | 31,302                                      |
| 2015-16     | 27,570                         | 26,301                                      |

******