Question : Increasing Petrol Prices

(a) whether the petrol and diesel prices in the country have reached a record high after two years
and if so, the details thereof and reasons therefor and whether this peak of petrol and diesel
prices were seen last in October, 2018;
(b) whether it is also a fact that increase in prices of these two fuels affect the prices of other
commodities resulting in hitting hard common man;
(c) whether keeping in view the fall in prices of crude oil in the international markets, the
Government proposes to reduce the prices of petroleum products, if so, the steps taken or being
taken by the Government to restrict the petrol and diesel prices in the country;
(d) whether petrol and diesel high prices are due to price mechanism handed over to market force
and if so, the details thereof;
(e) the detail of yearly tax collected by the Union Government on petrol and diesel in the last
three years, and whether the tax collection has increased to almost double from what it was in
2013;
(f) whether it is a fact that India has one of the highest taxes on petrol in the world and if so, the
reasons for such high tax which is beyond almost many other countries in the world especially in
the time when the common man earning is already hit by coronavirus pandemic and unplanned
lockdown; and
(g) whether the Government is planning to reduce the tax on petrol & diesel and if so, the details
thereof and if not, the reasons for the same?

Answer given by the minister

MINISTER OF PETROLEUM AND NATURAL GAS
(SHRI DHARMENDRA PRADHAN)
(a) to (d): Prices of petrol and diesel have been made market-determined by the Government
with effect from 26.06.2010 and 19.10.2014 respectively. Since then, the Public Sector Oil
Marketing Companies (OMCs) take appropriate decision on pricing of petrol and diesel in line
with their international product prices, exchange rate, tax structure, inland freight and other cost
elements. The prices of petroleum products in the country are linked to the price of respective
products in the international market. The details of retail selling prices of petrol and diesel
during the last two years are available at the website of Petroleum Planning and Analysis Cell
(PPAC) i.e. www.ppac.gov.in.
The weightage of petrol and diesel in the WPI index is 1.60% and 3.10% respectively and
in the CPI index is 2.19% and 0.15% respectively.
(e): The details of tax collected on petrol and diesel in the last three years is as under:
(in Rs.lakh Crore)
Item 2018-19 2019-20 2020-21*
Total 2.13 1.78 2.94
*Apr-Jan
The tax collection from petrol and diesel in 2013 was about Rs. 52,537 crores.
(f) & (g): The taxes on Petrol and other fuels imposed in various Countries keep changing
from time to time as per the policy of their respective governments, and as per the information
provided by PPAC in some countries the percentage of taxes on Petrol is higher than the current
percentage of tax on petrol in India.
The taxes are imposed for meeting the budgetary requirement of Government at the
Centre and State Government level in order to generate resources for infrastructure and other
developmental items of expenditure keeping in view the present fiscal position. Taxes are
increased or decreased depending on several factors like requirement of the Government, market
situation etc.
x-x-x-x-x

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