Petrol, diesel price and tax break down in India

It’s the start of a new week and, mercifully, there is no hike in the price of petrol or diesel. May 16 was the last price increase – making petrol costlier by 24 paise a litre (Rs 98.88) and diesel by 27 paise (Rs 90.40) – in Mumbai.

• 58.6 percent of the petrol price in Delhi is tax
• 52.85 percent of the cost of diesel in Delhi is tax

In Delhi, tanking up on petrol costs Rs 92.58 a litre and fuelling with diesel means you fork out Rs 88.02 a litre. One of the key reasons for the sustained rise in fuel prices is the high level of taxation. Look at the data sheet below which reveals the extent to which the two fuels are taxed, with Delhi as the benchmark.

 

Of the Rs 92.58 price of a petrol litre, Rs 32.90 or 35.53 percent is charged as the Central government’s ‘Excise Duty’ and Rs 21.36 or 23 percent is what the state levies. Put together, taxes account for Rs 54.26 or 58.60 percent of the price of petrol in the capital city.

It’s similar with diesel, which costs Rs 83.22 a litre in Delhi today. While Central taxes comprise Rs 31.80 or 38.21 percent of the price, state VAT accounts for Rs 12.19 or 14.64 percent of the retail price. Cumulatively, taxes comprise Rs 43.99 or 52.85 percent of the final selling price to the consumer.

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