Given the current budget scenario, gasoline and diesel excise rates have been set to free up resources for infrastructure construction and other development spending, Finance Minister Pankaj Chaudhary said Tuesday. In a written answer to a question in the Rajya Sabha, the minister stated that the price of fuel rose by 3.83 rupees per liter in May, 4.58 rupees per liter in June and 2.73 rupees per liter in July, up to on July 16.
Diesel price increased by Rs 4.42 in May
Gasoline and diesel prices were cut by Rs 0.16 and Rs 0.14 per liter, respectively, in April. Diesel prices rose by 4.42 rupees per liter in May, 4.03 rupees in June and 0.69 rupees in July. On July 16, 2021, the retail gasoline and diesel retail prices in Delhi were 101.54 rupees / liter and 89.87 rupees / liter, respectively. Choudhary went on to explain that, given the current budgetary scenario, excise tax rates on gasoline and diesel have been regulated to create resources for infrastructure and other development spending.
The total consumption tax on gasoline and diesel in the first three months of the current tax year (April to June) was 94,181 billion rupees. Gasoline and diesel excise tax revenues rose 88 percent to 3.35 lakh crore in the fiscal year ended March 31, 2021 after the excise tax was raised to a new high.
Last year the excise tax on gasoline was raised from 19.98 rupees to 32.9 rupees per liter to offset gains on global oil prices that fell to multi-year lows as the epidemic sucked demand. Diesel prices were raised to 31.8 rupees per liter, from 15.83 rupees previously.
Oil marketing organizations have made reasonable fuel pricing decisions
With effect from June 26, 2010 and October 19, 2014, the prices for gasoline and diesel were determined by the market. Since then, public oil marketing organizations have made reasonable price decisions for gasoline and diesel based on international product prices and other market conditions. According to him, the OMCs have increased and decreased fuel prices in response to fluctuations in global prices and the rupee-dollar exchange rate.