Oil and gas sector contributes Rs 3.4 trillion to govt kitty in H1FY24

financialexpress.com:

The country’s petroleum sector contributed Rs 3.41 trillion to the exchequer in the first half of the current financial year, down 4.6% on year, according to the latest data released by the Petroleum Planning and Analysis Cell. Of this, the sector contributed Rs 1.85 trillion to the centre and Rs 1.56 lakh crore to the states.

The amounts paid includes excise duty, customs duty, royalty rates on crude oil, corporate/income tax, service tax, cess on crude oil, and such other cess and surcharges on petroleum products.

“The subsidy burden on petroleum products was Rs 4,596 crore during first half of FY24 including Rs 30,396 crore during FY23 and the onetime grant of Rs 22,000 crore on account of under recovery on domestic LPG (Liquified Petroleum Gas) to the oil marketing companies (OMCs),” the report said.

In the first half of the previous financial year 2022-23, India’s oil and gas sector had contributed Rs 3.57 trillion to the exchequer which included Rs 1.97 lakh crore and Rs 1.60 trillion to the central and state exchequer respectively. In FY22, the contribution to the exchequer stood at Rs 7.74 trillion.

The exchequer received Rs 1.41 trillion as sales tax from across states and union territories in the first six months of the current fiscal. The central government has levied an excise duty of Rs 1.24 trillion on the sector from April to September compared to the excise duty of Rs 2.88 trillion in FY23, the data showed.

In May 2022, the central government had reduced the excise duty on petrol by Rs 8 per litre and on diesel by Rs 6 per litre to keep a check on the high fuel prices. It has also levied an additional basic excise duty of Rs 2 per litre on unblended petrol intended for retail sale from November 2022.

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