Collected INR 3.27 tln from excise, cess, surcharge on fuel pdts FY26 - Govt
This story was originally published at 15:09 IST on 21 July 2026
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NEW DELHI – The government has collected INR 3.27 trillion from excise duty, cess and surcharge on petroleum or fuel products in 2025-26 (Apr-Mar), Minister of State for Finance Pankaj Chaudhary said in a written response to the Rajya Sabha Tuesday. This estimate is provisional and is based on the consumption data available from the Petroleum Planning and Analysis Cell.
The government's revenue collection from the same taxes on fuel products totalled INR 2.96 trillion in FY25, INR 2.94 trillion in FY24, INR 3.10 trillion in FY23, and INR 3.84 trillion in FY22. The excise duty, cess, and surcharge collection take into account price changes of fuel products and their consumption patterns.
Petrol, diesel, natural gas and aviation turbine fuel are not yet taxed under the goods and services tax and are subject to value-added tax, central excise duty and cess and surcharge, as applicable.
There have been discussions in the past regarding bringing fuel products under the ambit of GST to bring down the number of taxes administered on fuel products. "An agenda was taken in the 45th GST Council meeting held on 17th September 2021 regarding the inclusion of petrol and diesel under GST. However, taking into account the discussions, the GST Council was of the view that it is not the right time to bring petrol and diesel within the ambit of GST," Chaudhary said.
While discussions on this issue have resurfaced in many other council meetings, most states are against the idea as bringing fuel products under GST will dent states' revenues. Chaudhary also said no assessment has been conducted on the inflationary impact of keeping fuel and liquor outside the ambit of GST. End
Reported by Priyasmita Dutta
Edited by Akul Nishant Akhoury
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