Rs 2.2 lakh crore revenue foregone due to excise duty cuts on petrol, diesel: Hardeep Puri

NEW DELHI: Union minister for petroleum and natural gas, Hardeep Singh Puri, announced on Saturday that the government forewent approximately Rs 2.2 lakh crore in revenue due to cuts in excise duty on petrol and diesel from November 2021 to May 2022. Addressing a press conference, Puri discussed the measures taken by the Modi government to manage fuel prices amidst global crude oil price fluctuations.
Excise duty on petrol and diesel saw a reduction of Rs 13 and Rs 16 per litre, respectively, during the mentioned period, resulting in the revenue loss. Puri responded to queries about potential future cuts, emphasizing that decisions would hinge on geopolitical stability and international oil prices.
"The decision (to cut petrol and diesel prices) can be considered if the world situation and oil prices remain stable. However, unforeseen events, such as global conflicts, can impact these decisions," Puri said, referencing incidents like the Houthi attacks in the Red Sea and the ongoing Russian-Ukraine war.
Highlighting that 85% of India's crude oil needs are met through imports, Puri detailed the impact of the Russia-Ukraine war on crude oil supply. Despite potential sanctions, India diversified its sources and increased purchases from Russia.
"In the midst of the Russia-Ukraine war, we navigated the situation by diversifying our supply. Our policy is 'nation first,' and the consumer is paramount," Puri affirmed.
Talkig about the rise in global LPG prices during the Covid period (June 2020 to June 2022), Puri underscored the government's commitment to citizens. Despite a 300% increase in international LPG prices, the cost was not fully passed on to domestic consumers, limiting the rise in domestic LPG prices to 72%.
Puri commended the public sector oil marketing companies for ensuring continuous supplies of essential cooking fuel despite significant losses. In a recent move, Prime Minister Narendra Modi announced a Rs 100 reduction in LPG prices on International Women's Day, in addition to continuing the Rs 300 LPG subsidy for Ujjwala beneficiaries in the upcoming fiscal year.
As a result of these measures, the standard 14.2-kg domestic LPG cylinder is priced at Rs 803 in Delhi, Rs 802.50 in Mumbai, Rs 829 in Kolkata, and Rs 818.50 in Chennai. Ujjwala consumers, including the subsidy benefit, will pay Rs 503 in Delhi, Rs 502.50 in Mumbai, Rs 529 in Kolkata, and Rs 518.50 in Chennai.