Govt's earnings from excise duty on petroleum products jump to Rs 3.36 lakh cr in FY21

The Centre earned Rs 3.36 lakh crore from central excise duty collected on petroleum, diesel and natural gas during financial year 2020-21, as compared with Rs 2.03 lakh crore in FY20.

While Rs 1.01 lakh crore was collected from excise duty on petrol in FY21, Rs 2.33 lakh crore was collected from diesel and Rs 1,195 crore from natural gas, the Parliament was informed on Monday.
 
The central excise collection from these products stood at Rs 1.54 lakh crore in FY19. Excise duty collection from the products has been rising gradually over the years. It stood at Rs 53,090 crore in FY14 and Rs 74,158 crore in FY15.
 
The Centre had last year hiked excise duty on petrol from Rs 19.98 per litre to Rs 32.9 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 per litre.
 
In another reply in the Lok Sabha, Minister of State in Finance Ministry Pankaj Choudhary said, "The excise duty rates have been calibrated to generate resources for infrastructure and other developmental items of expenditure keeping in view the prevailing fiscal situation."

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During April-June 2021, the Centre collected Rs 94,181 crore from total central excise duty collected on petrol and diesel. The average share of central excise duty on petroleum products from 2017-18 to 2020-21 in gross revenue collected by union was 12 per cent, the Parliament was informed.
 
Petrol prices have been hiked 39 times so far in FY22 till July 13, while diesel prices have been increased 36 times. The price of petrol and diesel has been cut once and twice, respectively, in the ongoing financial year so far.
 
The prices of petrol and diesel products in the country are benchmarked to international product prices and are revised on a daily basis by the oil marketing companies.
 
The prices of petrol and diesel have crossed Rs 100 per litre mark in many states across the country, leading to protests by opposition parties. Besides, the rise in prices of automobile fuel have also raised concerns about higher inflation.
 
India's retail inflation eased to 6.26 per cent in June as compared to 6.3 per cent in May, but was higher than the Reserve Bank of India's tolerance level of 4 (+/- 2) per cent.