As gasoline and diesel prices rise day by day to recent records across India, boosting inflation, the government said higher fuel taxes have boosted its collection.
The central collection of excise duties on petroleum products has risen almost 1.5 times to 3.45 lakh crore in the last three years, according to a written response from Rameshwar Teli, state minister at the Ministry of Oil and Natural Gas, in Lok Sabha.
Although auto fuel prices have risen in line with the growth of global crude oil, taxes encompass the main part of the prices at the pump. Central and state taxes as a percentage of the base price were 125.2% for gasoline and 100.3% for diesel on July 15, the minister said.
Crude oil prices have so far risen 16% in the current fiscal period, exceeding $ 75 a barrel. This has resulted in higher retail prices in many parts of the country. For example, petrol and diesel are sold in Delhi at 101.2 per liter and 89.7 per liter respectively in Delhi on 15 July.
The central collection of excise duties on gasoline jumped 1.5 times in three years to FG21 at 1.02 lakh crore, the minister said. For diesel, collections jumped 1.6 times to 2.33 lakh crore.
As of February 2018, the excise tax on unbranded gasoline has increased 69% from Rs 19.48 per liter to Rs 32.9 per liter. For unbranded diesel, the excise tax more than doubled to Rs 31.8 per liter.
In current fiscal prices, the prices of gasoline and diesel have increased 39 and 36 times, respectively, according to official data.
From 2018-19, while gasoline prices rose 352 times and fell 247 times, the corresponding diesel numbers were 328 and 263, respectively. According to the data, LPG prices increased 26 times and decreased 11 times.
“Gasoline and diesel prices have been determined on the market with effect from June 2010 and October 2014, respectively,” the minister said. “Since then, public oil companies from the public sector have made appropriate decisions on setting petrol and diesel prices based on international product prices and other market conditions.”
The data show that most of India’s fuel demand is met by oil imports, whose import bills have risen. While the dependence of crude oil on imports jumped from 83.8% in 2018-19. At 85.4% in the current financial year (April-May 2021), the price of the Indian crude oil basket has jumped over 7% in the last three years.
In response to a separate question, the minister said state oil traders had secured a total of 85.82 lakh of new domestic gas gas connections between April 2020 and March 2021. The largest number of connections were provided in Uttar Pradesh, at 14.86 lakh, and followed by Maharashtra’s 9.85 lakhs and 9.6 lakhs in Bihar.