The union government’s tax collections on petrol and diesel jumped by 88 per cent to Rs 3.35 lakh crore in the year to March 31, after excise duty was raised to a record high, the Lok Sabha was informed on Monday.
Excise duty on petrol was hiked from Rs 19.98 per litre to Rs 32.9 last year to recoup gain arising from international oil prices plunging to multi-year low as pandemic gulped demand.
The same on diesel was raised to Rs 31.8 from Rs 15.83 a litre, according to a written reply to a question given by the Union Minister of State for Petroleum and Natural Gas Rameswar Teli in the Lok Sabha. This led to excise collections on petrol and diesel jumping to Rs 3.35 lakh crore in 2020-21 (April 2020 to March 2021), from Rs 1.78 lakh crore a year back, he said.
Collections would have been higher but fuel sales falling due to lockdown and other restrictions imposed to curb the spread of the coronavirus pandemic, which muted economic activity and stalled mobility. In 2018-19, excise collections on petrol and diesel were Rs 2.13 lakh crore.
To a separate question, the Minister of State for Finance Pankaj Chaudhary said excise collections in April-June this year totalled Rs 1.01 lakh crore. This number includes excise on not just petrol and diesel but also ATF, natural gas and crude oil.
The total excise collection in FY21 was Rs 3.89 lakh crore. “Prices of petrol and diesel are market-determined with effect from June 26, 2010, and October 19, 2014, respectively,” Teli said.