Indian petroleum sector contributed Rs 5.45 lakh crore to the exchequer in the first nine months of the current financial year (FY23), the government informed on March 13.
Rameswar Teli, Minister of State for Petroleum and Natural Gas, told Rajya Sabha that according to the information provided by 15 major oil and gas companies, the petroleum sector contributed Rs 3.07 lakh crore and Rs 2.37 lakh crore in 9MFY23 to the central and state exchequer respectively.
The amount paid includes basic excise duty, special additional excise duty, the road and infrastructure cess, agriculture and infrastructure development cess, and such other cess and surcharges on petroleum products.
In addition to this year’s data, the minister also provided data for the last five years to Rajya Sabha. In FY22, the oil and gas sector contributed Rs 7.74 lakh crore to the government while the sector contributed Rs 6.72 lakh crore in FY21.
The central government levied an excise duty of Rs 2.03 lakh crore on the sector from April 2022 to December 2023 compared to the excise duty of Rs 3.63 lakh crore in FY22.
Despite of the rise in international crude oil prices since the Russia-Ukraine war, oil marketing companies (OMCs) have not changed fuel prices to keep inflation in the country in check.
In May 2022, the central government reduced the excise duty on petrol by Rs 8 per litre and on diesel by Rs 6 per litre to reduce the high fuel prices.
Following the Centre’s decision, states including Maharashtra, Kerala and Rajasthan have slashed VAT (value-added tax) on petrol and diesel.