The government’s excise duty collection on petroleum products has grown by nearly 48 percent in the first four months of the current fiscal, and the additional collections resulting from it are three times the oil bond liability during the entire fiscal. According to the data of the Controller General of Accounts under the Union Finance Ministry, According to the numbers of the Controller General of Accounts, according to the Union The excise duty collection for the period from April to July 2021 has exceeded nearly one lakh crore rupees, up from ₹67,895 crore in the corresponding period of the previous financial year.
After the implementation of the GST (Goods and Services Tax) regime, excise duty is levied only on diesel and petrol and ATF and natural gas only. Except these products, all other goods and services are strictly subject to GST. In the first four months of FY 2021 to 22, April to July, there has been an increase of about Rs 32,492 crore, which is 3x the oil bond liability of about Rs 10,000 crore for the full year. The United Progressive Alliance (UPA) government issued oil bonds to subsidize petroleum fuels.
Finance Minister Nirmala Sitharaman Said
Industry sources have also said that a major part of excise duty collection comes from cess on diesel and petrol, and with a huge pick-up in sales, the collections in the current year could go up to more than Rs one lakh crore. and also tell you that the Finance Minister whose name is Nirmala Sitharaman. Nirmala Sitharaman gived that statement in the last few days that due to the payments being made in lieu of the huge subsidy given on these fuels a few years ago.
There is not much room left for the price of diesel, petrol to come down. Under the UPA government, diesel and petrol and cooking gas and kerosene were sold at prices much below their actual cost. The government of that time had issued oil bonds worth Rs 1.34 lakh crore instead of giving direct subsidy to their companies to sell all these fuels at cheap prices. At that time, the prices of crude oil in the international market were much higher than $100 per barrel.