Petrol-Diesel Price: Even though there has been a big decline in the prices of Crude Oil in the international market during the last five years, the common people have not got any respite from the expensive prices of Petrol-Diesel. But in these five years, the central and state governments have definitely filled their coffers by imposing tax on petrol and diesel. This information has come to light in response to a question asked during Question Hour in Parliament. From the financial year 2019-20 till the first quarter April-June of the current financial year 2024-25, the central and state governments have earned Rs 36.58 lakh crore through tax on petrol diesel.
Earning of Rs 36.58 lakh crore in 5 years
During Question Hour in Rajya Sabha, Congress MP Randeep Singh Surjewala asked the Petroleum Ministry for information about the revenue collected by imposing Central Excise Duty, other taxes and cess on petrol diesel since May 2019. According to the information given by Suresh Gopi, Minister of State, Ministry of Petroleum and Natural Gas, in a written reply to this question, from the financial year 2019-20 to the first quarter April-June of the financial year 2024-25, the central and state governments together have made 36, Rs 58,354 crore has been recovered. Whereas during the last five financial years from 2019-20 to 2023-24, the central and state governments have earned Rs 35 lakh crore through taxes.
60% tax on petrol and diesel goes to the central government
If we look at the tax collected by the Central and State Government on petrol and diesel, out of the total tax collected of Rs 36,58,354 crore, Rs 22,21,340 crore has gone to the Central Government treasury. Whereas the state government has collected Rs 14,37,015 lakh crore by imposing its tax i.e. VAT. That means, of the Rs 36.58 lakh crore tax collected on petrol and diesel during the five financial years, 60 per cent has been collected by the Central Government while 40 per cent has gone to the state treasury.
Central and state governments are filling the treasury
Petrol is available at Rs 94.77 per liter in the capital Delhi. In this, petrol is made available to dealers at Rs 55.08 per liter excluding excise duty and VAT. Whereas the share of excise duty, dealer commission and VAT is Rs 39.69. The share of taxes collected by the central and state governments in the prices of petrol is 37.24 percent. Whereas in the capital Delhi, the share of tax in the total price of diesel is 32.85 percent.
Crude prices fall, but petrol and diesel are not cheap
At present, Brent crude oil is trading below $73 per barrel in the international market at $72.85 per barrel. While WTI crude oil is trading below $70 per barrel at $68.68 per barrel. That is, even though there has been a huge fall in the prices of crude oil, the common people have not got any relief from the expensive prices of petrol and diesel. By the way, let us tell you that expensive diesel has also contributed a lot in increasing inflation in the country and especially food inflation.
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