Ministry of Petroleum & Natural Gas

Reduction in Import of Oil

Posted On: 19 SEP 2020 3:54PM by PIB Delhi

During 2019-20, consumption of petroleum products was 213.7 MMT and percentage of import dependency of oil and oil equivalent gas was 77.9%.

Currently, the Central Government levies Excise duty on petrol and diesel, whereas State Governments levy VAT/Sales Tax. Excise duty is levied on specific basis (fixed amount per litre) and VAT/Sales tax (by most of the states) is levied on an ad-valorem basis. Details of Excise duty on non GST goods and the rates of products under GST are annexed.

Ministry of Petroleum and Natural Gas has identified a basket of strategies inter-alia including primarily increasing domestic production of oil and gas and promoting biofuels/alternate fuels with a view to achieve reduction in import of crude oil.Government has also taken a number of initiatives to encourage the use of alternative fuels like ethanol and bio-diesel through Ethanol Blending in Petrol (EBP) Programme and Bio-diesel blending in diesel. Government has formulated a National Bio Fuel Policy 2018 to boost availability of biofuels in country. To give a major thrust to Ethanol Blending Programme, Oil CPSEs are establishing twelve 2G Ethanol plants across 11 States of the country.

As per resolution dated 08.11.2019 regarding authorization to market transportation fuel, the authorized entities, in addition to conventional fuels, are required to install facilities for marketing at least one new generation alternate fuels like Compressed Natural Gas (CNG), bio-fuels, Liquefied Natural Gas (LNG), electric vehicle charging points etc. at their proposed retail outlets (RO) within three years of operationalization of the said outlet subject to the entity complying with various other statutory guidelines. Also, as on 31.08.2020, PSU Oil Marketing Companies have set up Electric Charging facilities at 110 retail outlets and Battery Swapping Stations at 17 retail outlets in the country.

This information was given by the Union Minister of Petroleum & Natural Gas Shri  Dharmendra Pradhan in the LokSabha today in a written reply.

 

Annexure

 

  1. Details of Excise duty on non GST goods

 

S. No.

Commodity

Basic Excise Duty

Special Additional Excise Duty

Road & Infrastructure Cess

Total Central Excise Duty

1

Crude Petroleum Oil

Rs 1 per ton excise duty + Cess @20% +
Rs.50/ MT as NCCD

--

--

Rs 1 per tonne excise duty + Cess @20% +
Rs.50/ MT as NCCD

2

Natural Gas

[other than compressed natural gas]

Nil

--

--

Nil

3

Compressed Natural Gas

14%

--

--

14%

4

Petrol (Unbranded)

Rs. 2.98/ltr

Rs. 12.00/ltr

Rs. 18.00/ltr

Rs. 32.98/ltr

5

High Speed Diesel (Unbranded)

Rs. 4.83/ltr

Rs.9.00/ltr

Rs. 18.00/ltr

Rs. 31.83/ltr

6

ATF

11%

[2% for RCS flights]

--

--

11%

[2% for RCS flights]

NCCD : National Calamity Contingent Duty

RCS: Regional Connectivity Scheme

 

  1. Rates of GST on Other petroleum products

 

Commodity

GST

LPG

Domestic

5.00%

Non - Domestic

18.00%

Kerosene

PDS

5.00%

Non PDS

18.00%

Naphtha

Fertilizer

18.00%

Non- Fertilizer

18.00%

Bitumen & Asphalt, furnace oil, Lube, Pet coke etc

 

18.00%

 

*******

YKB/SK


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