The revenue from customs and excise duties on crude and petroleum products increased 14.9 per cent during 2002-03. This is being attributed to the high international prices of crude and an increase in the consumption of petroleum products, leading to higher imports.

While the average international prices of the Indian basket of crude stood at $22.75 a barrel during 2001-02, it rose to $26.59 during 2002-03.  Moreover, the import of crude and petroleum products moved up to 89.02 million tonnes during 2002-03 from 85.7 million tonnes in 2001-02.

According to the preliminary estimates of the petroleum ministry, the government collected around Rs 41,000 crore (Rs 410 billion) from customs and excise duties on crude and petroleum products during 2002-03, against Rs 35,695 crore (Rs 356.95 billion) during 2001-02.

While customs duties contributed Rs 8,000 crore (Rs 80 billion) to the revenue collection, the remaining Rs 33,000 crore (Rs 330 billion) came from excise duties.

The government collected Rs 6,803 crore (Rs 68.03 billion) from customs duties and Rs 28,892 crore (Rs 288.92 billion) from excise duties in 2001-02, when 39.9 per cent of the excise duty revenue and 17 per cent of the customs duty revenue came from the oil sector.

The estimated revenue to state governments on account of sales tax from the petroleum sector stood at around Rs 25,000 crore (Rs 250 billion) during 2001-02.

On petrol, the Centre charges a 20 per cent customs duty, a 30 per cent excise duty, Rs 6 a litre special additional duty, and Rs 1.50 a litre additional duty (road cess).

On diesel, there is a 20 per cent customs duty, a 14 per cent excise duty, and Rs 1.50 a litre additional duty (road cess).

Kerosene distributed through the public distribution system, liquefied petroleum gas for domestic use, and naphtha attract a 10 per cent customs duty and a 16 per cent excise duty.