Question : Taxes on Fuel

(a) whether in spite of decline in the prices of crude oil in the international market, the prices
of petrol and diesel are continuously rising day by day across the country including
Rajasthan;
(b) if so, the reasons therefor;
(c) the type of taxes being levied by the Government on petrol and diesel at present and
amount of each of these taxes being levied;
(d) the details of new taxes levied on petrol and diesel during the last two years;
(e) the details of increase or reduction in each of the taxes being levied on petrol and diesel
during the last two years; and
(f) whether the Government proposes to reduce the amount of various types of taxes and
make various other efforts to reduce the increasing prices of petrol and diesel, if so, the
details thereof and if not, the reasons therefor?

MINISTER OF PETROLEUM AND NATURAL GAS
(SHRI DHARMENDRA PRADHAN)
(a) to (f): A statement is laid on the Table of the House.
Statement referred to in reply to parts (a) to (f) of Lok Sabha Starred Question No. 183
asked by Shri Hanuman Beniwal and Shri Rajiv Ranjan Singh alias Lalan Singh to be
answered on 8th March, 2021 regarding “Taxes on Fuel ”.
(a) & (b): 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.
(c) The details of taxes levied on petrol and diesel are given below:
(i) Customs duty: The Basic Customs Duty (BCD) on petrol and diesel is given
below:
Particulars Basic Customs Duty
Petrol 2.5%
Petrol (branded) 2.5%
High Speed Diesel 2.5%
High Speed Diesel (branded) 2.5%
(ii) Excise duty: The details of the total incidence of excise duty (including Basic
Excise duty, Cesses and Surcharge) are as under:
Commodity BED SAED RIC AIDC Total
(Rs per litre)
Petrol (unbranded) 1.40 11 18 2.5 32.90
Petrol (branded) 2.60 11 18 2.5 34.10
Diesel (unbranded) 1.80 8 18 4.0 31.80
Diesel (branded) 4.20 8 18 4.0 34.20
BED: Basic Excise Duty; SAED: Special Additional Excise Duty; RIC: Road and
Infrastructure Cess; AIDC: Agriculture Infrastructure and Development Cess.
(iii) VAT: State wise actual rates of VAT on petrol and diesel as on 1st March
2021 are given as Annexure-1.
(d) Agriculture Infrastructure and Development Cess (AIDC) at the rate of Rs. 2.5 per
litre for petrol and Rs. 4 per litre on diesel has been imposed vide Finance Bill, 2021.
Simultaneously, basic excise duty and special additional excise duty have been reduced.
Thus, in net the total duty incidence remains unchanged.
(e) The details of changes in central excise duty on petrol and diesel during the last two
years is given as Annexure-II.
(f) The rate of taxes on petrol and diesel is calibrated so that the interest of consumers is
protected and at the same time the requirement of fiscal resources for infrastructure and other
development expenditure is also taken care of.
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