New Delhi: The government’s collections from the imposition of excise duty on petroleum products have jumped 48 per cent in the first four months of the current financial year, with an incremental collection of 3 times the repayment liability of old oil bonds. Full financials, official data showed.
data available from Controller General of Accounts Excise duty collection in the Union Finance Ministry during April-July 2021 increased to over Rs 1 lakh crore as against Rs 67,895 crore in the same period last fiscal.
after the introduction of goods and services Tax (GST) regime, excise duty is levied only on petrol, diesel, ATF and natural gas. Except these products, all other goods and services are under the GST regime.
The incremental collection of Rs 32,492 crore in the first four months of the financial year 2021-22 (April 2021 to March 2022) is three times the liability of Rs 10,000 crore that the government has for the full year for repayment of oil bonds. The previous Congress-led UPA government had issued a subsidy on fuel.
Industry sources said the bulk of excise duty collection is from levies on petrol and diesel and with sales picking up, the incremental collections in the current year may exceed Rs 1 lakh crore over the previous year.
In all, the UPA government has issued bonds worth Rs 1.34 lakh crore (a sovereign commitment to be paid in future) to compensate state-run oil companies for selling fuels such as LPG, kerosene and diesel at below rates. equal) were issued. Cost.
According to the Finance Ministry, out of this Rs 10,000 crore is to be paid in the current financial year.
Firstly, Finance Minister Nirmala Sitharaman and the then Oil Minister Hardeep Singh Puri had blamed oil bonds for limiting fiscal space to relieve people from trading oil prices at record highs.
Sitharaman last month ruled out cutting excise duty on petrol and diesel to bring down prices, saying there are limits on payment in lieu of the previous subsidized fuel. He put the total liability of the BJP government at Rs 1.3 lakh crore.
On September 2 – a day after Congress leader Rahul Gandhi launched a scathing attack on the government for raising cooking gas prices – Puri put the total liabilities at over Rs 1.5 lakh crore.
Known for widespread impunity and policy paralysis in “India’s Lost Decade”, UPA government Troubled future governments with oil bonds. Of these, over Rs 1.5 lakh crore is yet to be paid, thus tying up critical resources, limiting fiscal space and limiting the financial independence of OMCs,” he had tweeted.
Puri, 1974 batch Indian Foreign Service officer, who served as Permanent Representative of India United Nations From 2009 to 2013, it said the exploration and production (E&P) sector was “fund-hungry”.
“There was paucity of funds in the crucial E&P sector. As a result, our import bill remains high. Profits of around Rs 3.6 lakh crore of oil companies were instead used for price stabilization by a remote controlled government of ‘economic experts’ .An ‘All is well’ smokescreen,” he had tweeted.
The bulk of the excise duty collection comes from petrol and diesel, on which the Modi government had imposed a record tax last year.
Excise duty on petrol was raised to Rs 32.9 per liter from Rs 19.98 per liter last year on the back of pandemic demand due to fall in international oil prices to a several-year low.
During the previous Congress-led UPA government, petrol and diesel as well as cooking gas and kerosene were sold at subsidized rates. Instead of paying subsidies to bring about parity between artificially suppressed retail selling prices and costs, which had exceeded $100 a barrel due to international rates, the then government paid state-fuel retailers a total of ₹1.34 lakh. Issued oil bonds worth Rs.
These oil bonds and the interest thereon are currently being paid.
According to information provided by the finance ministry, out of Rs 1.34 lakh crore in oil bonds, only Rs 3,500 crore of principal has been paid and the remaining Rs 1.3 lakh crore is to be paid between the current fiscal and 2025-26.
The government has to repay Rs 10,000 crore in this financial year (2021-22). 31,150 crore in 2023-24, Rs 52,860.17 crore next year and Rs 36,913 crore in 2025-26.
Minister of State for Petroleum and Natural Gas Rameshwar Teli said in July Parliament That the central government’s tax collection on petrol and diesel increased by 88 per cent to Rs 3.35 lakh crore as on March 31, 2021 (2020-21 fiscal) from Rs 1.78 lakh crore a year ago.
Excise duty collection in pre-pandemic 2018-19 was Rs 2.13 lakh crore.
The increase in taxes last year resulted in no revision in retail prices as they were adjusted against the shortfall required by the fall in international oil prices.
But with a return to demand, international oil prices have soared, leading to record high petrol and diesel prices across the country. Petrol in more than half of the country is above Rs 100 a liter and diesel is above that level in Rajasthan, Madhya Pradesh and Odisha.
When international oil prices fell from $77 a barrel to less than $65, there was no drastic cut in rates. Petrol in Delhi has gone up to Rs 101.19 per liter from a peak of Rs 101.84 per liter, while diesel rates have come down to Rs 88.62 per liter from 89.87. Since July, the rates of LPG have been increased by Rs 190 per cylinder.
Industry sources said the government had ordered a moratorium on rates during assembly elections in states like West Bengal. That stagnation meant that retail prices did not move in line with costs and now oil companies are making up for their losses when rates have fallen.
data available from Controller General of Accounts Excise duty collection in the Union Finance Ministry during April-July 2021 increased to over Rs 1 lakh crore as against Rs 67,895 crore in the same period last fiscal.
after the introduction of goods and services Tax (GST) regime, excise duty is levied only on petrol, diesel, ATF and natural gas. Except these products, all other goods and services are under the GST regime.
The incremental collection of Rs 32,492 crore in the first four months of the financial year 2021-22 (April 2021 to March 2022) is three times the liability of Rs 10,000 crore that the government has for the full year for repayment of oil bonds. The previous Congress-led UPA government had issued a subsidy on fuel.
Industry sources said the bulk of excise duty collection is from levies on petrol and diesel and with sales picking up, the incremental collections in the current year may exceed Rs 1 lakh crore over the previous year.
In all, the UPA government has issued bonds worth Rs 1.34 lakh crore (a sovereign commitment to be paid in future) to compensate state-run oil companies for selling fuels such as LPG, kerosene and diesel at below rates. equal) were issued. Cost.
According to the Finance Ministry, out of this Rs 10,000 crore is to be paid in the current financial year.
Firstly, Finance Minister Nirmala Sitharaman and the then Oil Minister Hardeep Singh Puri had blamed oil bonds for limiting fiscal space to relieve people from trading oil prices at record highs.
Sitharaman last month ruled out cutting excise duty on petrol and diesel to bring down prices, saying there are limits on payment in lieu of the previous subsidized fuel. He put the total liability of the BJP government at Rs 1.3 lakh crore.
On September 2 – a day after Congress leader Rahul Gandhi launched a scathing attack on the government for raising cooking gas prices – Puri put the total liabilities at over Rs 1.5 lakh crore.
Known for widespread impunity and policy paralysis in “India’s Lost Decade”, UPA government Troubled future governments with oil bonds. Of these, over Rs 1.5 lakh crore is yet to be paid, thus tying up critical resources, limiting fiscal space and limiting the financial independence of OMCs,” he had tweeted.
Puri, 1974 batch Indian Foreign Service officer, who served as Permanent Representative of India United Nations From 2009 to 2013, it said the exploration and production (E&P) sector was “fund-hungry”.
“There was paucity of funds in the crucial E&P sector. As a result, our import bill remains high. Profits of around Rs 3.6 lakh crore of oil companies were instead used for price stabilization by a remote controlled government of ‘economic experts’ .An ‘All is well’ smokescreen,” he had tweeted.
The bulk of the excise duty collection comes from petrol and diesel, on which the Modi government had imposed a record tax last year.
Excise duty on petrol was raised to Rs 32.9 per liter from Rs 19.98 per liter last year on the back of pandemic demand due to fall in international oil prices to a several-year low.
During the previous Congress-led UPA government, petrol and diesel as well as cooking gas and kerosene were sold at subsidized rates. Instead of paying subsidies to bring about parity between artificially suppressed retail selling prices and costs, which had exceeded $100 a barrel due to international rates, the then government paid state-fuel retailers a total of ₹1.34 lakh. Issued oil bonds worth Rs.
These oil bonds and the interest thereon are currently being paid.
According to information provided by the finance ministry, out of Rs 1.34 lakh crore in oil bonds, only Rs 3,500 crore of principal has been paid and the remaining Rs 1.3 lakh crore is to be paid between the current fiscal and 2025-26.
The government has to repay Rs 10,000 crore in this financial year (2021-22). 31,150 crore in 2023-24, Rs 52,860.17 crore next year and Rs 36,913 crore in 2025-26.
Minister of State for Petroleum and Natural Gas Rameshwar Teli said in July Parliament That the central government’s tax collection on petrol and diesel increased by 88 per cent to Rs 3.35 lakh crore as on March 31, 2021 (2020-21 fiscal) from Rs 1.78 lakh crore a year ago.
Excise duty collection in pre-pandemic 2018-19 was Rs 2.13 lakh crore.
The increase in taxes last year resulted in no revision in retail prices as they were adjusted against the shortfall required by the fall in international oil prices.
But with a return to demand, international oil prices have soared, leading to record high petrol and diesel prices across the country. Petrol in more than half of the country is above Rs 100 a liter and diesel is above that level in Rajasthan, Madhya Pradesh and Odisha.
When international oil prices fell from $77 a barrel to less than $65, there was no drastic cut in rates. Petrol in Delhi has gone up to Rs 101.19 per liter from a peak of Rs 101.84 per liter, while diesel rates have come down to Rs 88.62 per liter from 89.87. Since July, the rates of LPG have been increased by Rs 190 per cylinder.
Industry sources said the government had ordered a moratorium on rates during assembly elections in states like West Bengal. That stagnation meant that retail prices did not move in line with costs and now oil companies are making up for their losses when rates have fallen.
.