New Delhi: Customs rates on gasoline and diesel have been calibrated to produce resources for infrastructure development and other development expenditures that are in accordance with the applicable fiscal situation, the State Minister for Finance Pankaj Chaudhary said on Tuesday.
In a written reply on the question at Rajya Sabha, the minister said the gasoline price had increased by Rs 3.83 per liter in May, Rs 4.58 in June and Rs 2.73 in July (until July 16).
In April, gasoline and diesel prices were revised down by Rs 0.16 and Rs respectively 0.14 per liter.
The retail price of Diesel rose by Rs 4.42 per liter in May, Rs 4.03 in June and Rs 0.69 in July (until July 16).
The retail price of gasoline and diesel in Delhi on July 16, 2021, respectively reached Rs 101.54 / Liter and Rs 89.87 / Liter, he said.
“The customs rate on gasoline and diesel has been calibrated to produce resources for infrastructure and other developments that are in accordance with the applicable fiscal situation,” Chaudhary said.
In the first three months (April-June) of the current fiscal, the total customs collected on gasoline and diesel is Rs 94,181 Crore.
The collection of excise on gasoline and diesel jumped 88 percent to the RS 3.35 lakh Crore in the last fiscal which ended on March 31, 2021, after the customs are raised to the highest record.
Customs on gasoline is climbed from Rs 19.98 per liter to RS 32.9 years ago to regain benefits arising from international oil prices which fell to a multi-year level that swallowed a pandemic.
The same thing on Diesel was raised to Rs 31.8 from Rs 15.83 per liter.
Gasoline and diesel prices are determined by the effect of June 26, 2010 and October 19, 2014.
Since then, the public sector oil marketing company (OMC) has made the right decisions about gasoline and diesel prices based on international product prices and other market conditions.
OMC has increased and reduced the price of gasoline and diesel in accordance with international price changes and the rupee dollar exchange rate, he said.
“The government makes a joint effort to increase resources for infrastructure and other development goods, the details are announced in the annual budget.” The customs rate on gasoline and diesel has been calibrated to produce these resources by looking at the applicable fiscal situation.
VAT on gasoline and diesel are collected by countries, “he added.
Chaudhary answered a separate question about whether the government proposed to reduce high customs for gasoline and diesel and whether it would continue to increase customs and VAT on this product.