According to official data, the government's collections from levy of excise duty on petroleum products have jumped 48 percent in the first 4 months of the current fiscal year, with the incremental mop-up being 3-times of the repayment liability of legacy oil bonds in the full fiscal
Data available from the CGA in the Union Ministry of Finance showed excise duty collections during April-July 2021 rising to over Rs one lakh Cr, from Rs 67,895 Cr mop-up in the same period of the preceding fiscal. After the introduction of GST regime, excise duty is levied only on petrol, diesel, Aviation Turbine Fue and natural gas.
Except for these products, all other goods and services are under the GST regime. The incremental collections of Rs 32,492 Cr in the first four months of the fiscal year 2021-22 (April 2021 to March 2022) is three-times the Rs 10,000 Cr liability that the government has in the full year towards repayment of oil bonds that were issued by the previous Congress-led UPA government to subsidize fuel. Bulk of excise duty collection is from the levy on petrol and diesel and with sales picking up with a rebounding economy, the incremental collections in the current year may be over Rs 1 lakh Cr when compared with the previous year, industry sources said.