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How govt milks petrol, diesel prices for taxes: All you wanted to know in 5 points

Tue November 10 2015, 10:27 pm
  • petrol diesel prices

    The perennial complaint against high petrol prices just got a little more volatile. In a curious turn, with excise duty being hiked 5 times in the year, taxes and duties now exceeded the actual cost of production of petrol - Rs 31.20 in the retail price of Rs 60.70 a litre of petrol in Delhi is because of central and excise duties. Diesel prices are similarly milked for taxes by the government. Taxes in petrol price more than cost. Check this out: petrol price in Delhi = Rs 60.70; Cost of petrol = Rs 27.24; taxes = Rs 31.20! (Image Source: AP)
    Here is all you wanted to know in 5 points:

  • petrol diesel prices

    1. Based on average cost of gasoline and foreign exchange rate during the second half of October, it costs Rs 24.75 to produce a litre of petrol at refineries, industry officials said. After adding company margin and other costs, the price charged to a petrol pump dealer is Rs 27.24 per litre. On this price is added Rs 19.06 of excise duty that the Centre collects and a dealer commission of Rs 2.26 per litre. VAT or sales tax makes up for Rs 12.14 in the price of Rs 60.70 per litre in Delhi. (Image Source: Reuters)

  • petrol diesel prices

    For each payment on credit cards, banks charge 1 percent. (PTI)

  • petrol diesel prices

    3. The government had from November 7 raised excise duty on petrol by Rs 1.60 per litre and on diesel by 40 paise. The oil companies did not pass on this duty hike to consumers and absorbed all of it at the cost of their margin. The increase in excise duty on the fuels is likely to yield an additional revenue of about Rs 3,200 crore to the government during the rest of the current fiscal. (Image Source: Reuters)

  • petrol diesel prices

    4. The government had collected Rs 99,184 crore in excise collections from the petroleum sector in 2014-15. This was Rs 33,042 crore in the first quarter of current fiscal. The basic excise duty on unbranded or normal petrol was increased from Rs 5.46 per litre to Rs 7.06 a litre, according to a CBEC notification. (Image Source: Reuters)

  • petrol diesel prices

    5. After including additional and special excise duty, the total levy on petrol will be Rs 19.06 per litre as against Rs 17.46 at present. Similarly, on unbranded or normal diesel, excise duty has been increased from Rs 4.26 per litre to Rs 4.66 a litre. After including special excise duty, total incidence of excise duty on diesel will be Rs 10.66 per litre as against Rs 10.26 now. (Image Source: Reuters)

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