Rs 5,95,438 crore! What central, state governments earned from petrol and diesel in FY19

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 central government earned Rs 365,113, while the state governments earned Rs 230,325 in the aforesaid period.  In 2017-18, the government earned Rs 554,404 from these products, said the statement issued by the Ministry of Petroleum & Natural Gas. 
 

Chart: Total contribution to Central and State Exchequer from petroleum sector during the last five years

Oil marketing companies (OMCs) such as IOCL, HPCL, and BPCL have Rs 16,894, Rs 6,029, and Rs 7,132, respectively. However, the earnings of these OMCs were better in financial year 2017-18. IOCL earned Rs 21,346, HPCL Rs 6,357, and BPCL Rs 7,919. 

Chart: Profit earned by PSU OMCs from all activities during the last five years

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.