Lok Sabha Question No. 1575 (UNSTARRED), answered on 2016-03-04
Subject: Hike in Excise Duty on Petrol and Diesel
Ministry: FINANCE
Asked by: RAHUL RAMESH SHEWALE, NAGENDRA KUMAR PRADHAN, MALLIKARJUN  KHARGE, NISHIKANT  DUBEY, SHRIKANT EKNATH SHINDE, ADVOCATE NARENDRA KESHAV SAWAIKAR, VINAYAK BHAURAO RAUT

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA

## HIKE IN EXCISE DUIY ON PETROL AND DIESEL

1575. SHRI RAHUL SHEWALE:

SHRI NAGENDRA KUMAR PRADHAN:

SHRI MALLIKARJUN KHARGE:

SHRI NISHIKANT DUBEY:

DR: SHRIKANT EKNATH SHINDE:

ADV. NARENDRA KESHAV SAWAIKAR:

SHRI VINAYAK BHAURAO RAUT:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has hiked the excise duty and other taxes on and diesel at several occasions during each of the last three years and the current year; petrol
- (c) whether the Government has failed to transfer the benefit of plunging crude oil prices in international market to the consumers and if s0, the reasons therefor;
- (b) if SO the details thereof  along with the reasons therefor and the revenue generated as a result thereof;
- (d) whether the Government is considering to reduce the excise duty on and diesel; and petrol

## ANSWER

- (e) if so, the time by which a final decision is likely to be taken by the Government in this regard?

## (SHRI JAYANT SINHA)

(a) & (b}: The change in the Basic Excise Duty (BED) on petrol and diesel (both branded and unbranded) during the last three years and current financial year are a8 under:

| Petroleum product_             | Petrol    | Petrol   | Diesel    | Diesel   |
|--------------------------------|-----------|----------|-----------|----------|
| Notification                   | Unbranded | Branded  | Unbranded | Branded  |
| No.35/2012-CE dated 14.09.2012 | (-5.15)   |          | 1.46      |          |
| No.22/2014-CE dated 12.11.2014 | 1.50      | 1.50     | 1.50      | 1.50     |
| No.24/2014-CE dated 02.12.2014 | 2.25      | 2.25     | 1.00      | 1.00     |
| No.1/2015-CE                   | 2.00      | 2.00     | 2.00      | 2.00     |

| No.3/2015-CE dated 16.01.2015   |   2.00 |   2.00 |   2.00 |   2.00 |
|---------------------------------|--------|--------|--------|--------|
| No.43/2015-CE dated 06.11.2015  |   1.6  |   1.6  |   0.4  |   0.4  |
| No.46/2015-CE dated 16.12.2015  |   0.3  |   0.3  |   1.17 |   1.17 |
| No.1/2016-CE dated 01.01.2016   |   0.37 |   0.37 |   2    |   2    |
| No.2/2016-CE dated 15.01.2016_  |   0.75 |   0.75 |   2    |   2    |
| No.4/2016-CE dated 30.01.2016   |   1    |   1    |   1.5  |   1.5  |

Note: In Budget 2015-16, the following changes were effected:

- The effective rate of additional duty of excise (AED); commonly known a8 Road Cess, was increased from Rs.2 per litre to Rs.6 per litre on both petrol and Rs.4 per litre.
- (ii) Education Cess and Secondary and Higher Education Cess levied on excisable goods, including and diesel, were exempted. On this count; BED on petrol and diesel were suitably revised petrol

In September; 2012, to dis-incentivise dieselization of the economy\_the differential between petrol and diesel was reduced, by reducing the BED on by Rs.5.15 per litre and increasing the BED on diesel by Rs.1.46 per litre. These changes were revenue neutral. price petrol branded and unbranded) since November 2014, were affected  considering; inter alia, the continued fall in international prices of crude oil (Indian basket) and petroleum products and the fact that there was an over recovery in petrol and diesel: The revenue on account of the aforesaid increases was about Rs.20,Ocrore in F.Y. 2014-15 and is estimated at about Rs.16, 750 crore in F.Y. 2015-16. gain

Lc) : The Retail Selling Price [between April, 2015 and February; 2016] of Petrol in Delhi has changed from Rs.66.67 per litre (on 01.07.2015) to Rs.60.00 per litre (on 01.02.2016) while the Price of Diesel in Delhi has changed from Rs.52.30 per litre (on 01.06.2015) to Rs. 44.70 per litre(on 01.02.2016):

(d)&leh: There is no such proposal under consideration at present