Though almost all tax collections have declined due to the Covid-19 pandemic, Excise Duty collection recorded a 48 percent increase during the current financial year. The reason for this is the record increase in the excise rate on diesel and petrol. As per data received from the Comptroller and Auditor General (CGA), the collection of excise duty during April-November 2020 increased from Rs 1,32,899 crore in the same period of 2019 Rs 1,96,342 crore. This increase in Central Excise collection occurred during the eight months of the current financial year, despite a decrease of over one crore tonnes in diesel sales.
Petrol and diesel prices have been on fire for the past several months. Both fuel prices are on the seventh sky. This puts a lot of pressure on the common man’s pocket. The price of oil is not so much, but it has to pay a lot of tax. When you buy a liter of oil, it includes excise duty, dealer commission, and value-added tax (VAT). In this way, the retail price of one liter of oil is fixed by adding the actual price of petrol or diesel, i.e., Base Price, Excise Duty, and Value Added Tax, i.e., VAT.
Petrol and diesel out of GST
Diesel is the most consumed fuel in India. According to data from the Petroleum Planning and Analysis Cell (PPAC) of the Ministry of Petroleum, from April to November 2020, diesel sales fell to 49.4 million tonnes from 5.54 million tonnes a year earlier. During this period, petrol consumption also decreased from 2.04 million tonnes a year earlier to 17.7 million tonnes. Petroleum products and natural gas are excluded from the Goods and Services Tax (GST) system. The GST regime has been implemented in the country since July 2017.
Excise duty increased twice
The central government levies excise petroleum products and natural gas, while state governments levy Value Added Tax (VAT). Industry sources say that despite the slowdown in the economic sector, the main reason for the increase in excise collection is the increase in the tax rate on petrol and diesel. The government has increased the excise duty on petrol twice by Rs 13 per liter and on diesel by Rs 16 per liter during the current financial year. This increased the excise duty on petrol to Rs 32.98 per liter and diesel to Rs 31.83 per liter. According to the Comptroller and Auditor General data, the total excise duty receipts for the entire financial year 2019-20 have been Rs 2,39,599 crore.
Petrol price in Delhi all-time high
Petrol went to Rs 84.95 on Monday in Delhi, which is an all-time high. Diesel also went up to Rs 75.13 per liter. Today, the prices of both fuels increased by 25-25 paise per liter. The new year has not been good for petroleum fuels. In this way, petrol became expensive in just 5 days in 18 days of the new year, but it became expensive by Rs 1.24 in such days. Earlier, in the second half of last year also, petrol prices increased a lot. Its price has increased by more than Rs 15 per liter in the last 10 months is seen. This year, diesel prices have also increased by five days. Diesel price has increased by Rs 1.26 per liter these days. If seen, its price has increased by more than Rs 13 in the last 10 months alone.
How much tax in a liter of petrol
Petrol was priced at Rs 83.71 per liter on January 1 in Delhi. The actual price or base price of petrol in this was Rs 27.37 per liter. With a freight levy of Rs 0.37, this charge was taken from the dealer at Rs 27.74 per liter. Now, excise duty of Rs 32.98 and dealer commission of Rs 3.67, and value-added tax of Rs 19.32 is added. Now, the last price of one-liter petrol of Rs 83.71 is sold to retail customers. The value-added tax depends on individual states.
How much tax in a liter of diesel
If you talk about diesel, then the price on January 1 in Delhi was Rs 73.87. Now in this, diesel’s base price is Rs 28.32 per liter, including a freight charge of Rs 0.34 per liter. The dealer is charged Rs 28.66 for one liter of diesel. After this, an excise charge of Rs 31.83, dealer commission of Rs 2.53, and VAT of Rs 10.85 is included, and finally, the retail price of one-liter diesel was taken from the customer at Rs 73.87.