Parliamentary panel asks Govt to revise taxes levied on petroleum products

As fuel prices reign high, a parliamentary panel has asked the government to revise the taxes levied on petroleum products, noting that the levies were on the higher side.

The Parliamentary Standing Committee on Food, Consumer Affairs and Public Distribution, chaired by Trinamool leader Sudeep Bandyopadhyay, noted that the Centre had collected Rs 2,29,247 crore as central excise duty on petroleum, oil and lubricants in 2018-19 as against Rs 76,547 crore in 2010-11.

The customs duty also witnessed an increase from Rs 26,282 crore in 2010-11 to Rs 39,123 crore in 2018-19.

"The Committee are of the opinion that the taxes levied on petroleum products, specially on petrol and diesel are on the higher side, and need a revision after making an evaluation of the prevailing oil pricing regime existing in the country and also making comparative assessment of the same with the systems prevailing in this regard in other countries,” it said in a report presented to Parliament last week.

Opposition parties have been targeting the Modi government over high fuel prices and demanded roll back of the central excise duty, which they claimed were higher than the actual cost of the fuel.

Read | Cut taxes on petrol, diesel, may follow suit: Centre tells states

The government had scrapped the administered price mechanism on petrol on June 26, 2010 and diesel on October 19, 2014.

The public sector oil marketing companies (OMCs) take decision on pricing of petrol and diesel in line with their international product prices, exchange rate, tax structure, inland freight and other cost elements.

The Government modulates the effective cost to consumer for subsidized domestic LPG, whereas the prices of non-subsidized domestic LPG are determined by the OMCs in line with changes in international markets.