The government collected Rs 3.27 lakh crore from excise duty, cesses, and surcharges on fuel and petroleum products during 2025-26, 10% higher year-on-year, the finance ministry informed the Rajya Sabha on Monday.
In March this year, the government reduced the central excise duty on petrol and diesel by Rs 10 per litre each for domestic consumption after crude oil prices jumped due to the war in West Asia. The annual revenue impact from this move is estimated at around Rs 1 lakh crore.
In FY25, the government collected Rs 2.96 lakh crore from these taxes, similar to FY24. Collections from these taxes stood at Rs 3.10 lakh crore in FY23 and Rs 3.84 lakh crore in FY22, Minister of State for Finance Pankaj Chaudhary said in a written reply.
Petrol, diesel, natural gas, and ATF remain outside the Goods and Services Tax (GST) ambit. An agenda regarding the inclusion of petrol and diesel under GST was discussed at the 45th GST Council meeting on 17th September, 2021. However, after considering the discussions, the GST Council felt it was not the right time to bring petrol & diesel within the GST ambit, Chaudhary said.
The Centre also imposed export duties on diesel and aviation turbine fuel (ATF) after the West Asia conflict escalated and pushed up global energy prices. The government reviews these special additional excise duties on exports every fortnight.
In the latest revision, the Centre raised the Special Additional Excise Duty on diesel exports to Rs 15.50 a litre from Rs 8.50, while the levy on ATF increased to Rs 14.50 from Rs 7.50. Duty on petrol exports was cut to Rs 2.50 a litre from Rs 4 earlier.
