The government at the centre and states have earned Rs 595,438 crore from petroleum products such as petrol and diesel in 2018-19, a government statement said.
This was possible as the prices of petrol and diesel were deregulated. Petrol price was made market-determined by the government with effect from June 26, 2010, and the diesel price was deregulated on October 19, 2014.
Since then, the Public Sector Oil Marketing Companies (OMCs) take appropriate decision on pricing of petrol and diesel in line with international product prices and other market conditions,the minister said.
The central government earned Rs 365,113 crore while the state governments earned Rs 230,325 crore in the aforesaid period. In 2017-18, the government earned Rs 554,404 crore from these products, said the statement issued by the Ministry of Petroleum & Natural Gas.
Oil marketing companies (OMCs) such as IOCL, HPCL, and BPCL have earned Rs.16,894 crore, Rs 6,029 crore, and Rs 7,132 crore, respectively. However, the earnings of these OMCs were better in financial year 2017-18. IOCL earned Rs 21,346 crore, HPCL Rs 6,357 crore, and BPCL Rs 7,919 crore. In the Union Budget 2019, Finance Minister Nirmala Sitharaman hike excise duty and cess on fuel prices. Petrol prices rose Rs 2.5 per litre across the metro cities. Diesel prices also went up. The minister levied Re 1 per tonne import duty on crude oil to help the government raise additional funds.