Centre admits to incomes Rs 33 on each litre of petrol, Rs 32 on diesel

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The central government has confessed to having earned rupees 32.98 per liter of gasoline and rupees 31.83 per liter of diesel in the form of excise taxes. When asked a question, Minister of State for Finance Anurag Thakur told Lok Sabha that excise tax rates had been calibrated to generate resources for development projects.

When asked about taxes levied by consumers on gasoline and diesel, Thakur also replied that consumer price inflation halved in January 2021 compared to the same period last year, while gasoline and diesel rose significantly over the same period.

Thakur told the House of Commons that the central consumption tax, which includes the property tax, levy and surcharge for unbranded and branded gasoline, was Rs 19.98 per liter and Rs 21.16 per liter, respectively, on Jan. 1, 2020. In 2020, the same for unbranded gasoline rose to Rs 32.98 per liter, and that for branded version of the fuel rose to Rs 34.16 per liter.

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On unbranded diesel, the central consumption tax rose from 15.83 rupees per liter to 31.83 rupees per liter over the last year. For branded gasoline, the excise tax rose from Rs 18.19 per liter to Rs 34.19 per liter during this period.

Regarding whether gasoline and diesel prices in India were higher than international markets, Thakur said the government does not keep a record of any factors that determine these prices overseas.

“Petroleum product prices in the country are compared to international product prices. In general, petroleum products prices in the country are higher / lower than other countries due to a variety of factors, including the applicable tax regime and respective subsidy reimbursements, the details of which are not provided by governments the government, “he said.

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Commenting on the reasons for the increase in taxes on fuels for transportation, the junior finance minister said: “The excise tax rates have been calibrated to generate resources for infrastructure and other development expenditures, taking into account the current budget situation.”

Thakur disclosed details of the impact of increases in gasoline and diesel prices on inflation levels in 2020, and announced that inflation in the consumer price index (CPI-C) would drop from 7.59 percent in January 2020 to 4.06 percent in January 2021 has decreased. Inflation fuels for transportation increased during this period.

“The CPI – Inflation for” gasoline for vehicles “rose from 7.38 percent in January 2020 to 12.53 percent in January 2021. The CPI – inflation for” Diesel for vehicles “rose from 6.44 percent in January 2020 increased to 12.79 percent in January 2021, “he added.

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