Petrol Price has touched a record high of Rs 100-a-litre mark in Mumbai on Saturday. The domestic fuel prices have been on a steep rise since the beginning of this month. After a gap of 18 days, state-run oil marketing companies resumed daily revisions of fuel prices on May 4. Since then, petrol price has increased by Rs 3.30 per liter and diesel by Rs 3.89.
Petrol has also climbed to an all-time high in the national capital on Saturday. In Delhi, petrol costs Rs 93.94 a liter while diesel is being sold at Rs 84.89. In Mumbai, petrol price has jumped to Rs 100.19 on May 29. A liter of diesel is available at Rs 84.89 in the financial capital.
The price of auto fuel in India depends on international crude oil prices, rupee-dollar exchange rate. Moreover, the central government and states levy various taxes — excise duty and Value Added Tax (VAT) on petrol and diesel. Dealer’s commission and freight charges are also added in the fuel price. It must be noted that petrol and diesel do not come under the preview of goods and services tax (GST).
How much tax you pay on a liter of petrol and diesel in Delhi
Petrol:
Let’s consider the petrol price of Rs 92.58 a liter on May 16 in Delhi. The base price of the petrol is Rs 34.19, according to state-run oil marketing company Indian Oil. The freight levy is fixed at ₹0.36. The dealers pay Rs 34.55 of petrol in the capital. This price does not include excise duty or VAT. The excise duty levied on petrol is Rs 32.89. The dealer commission is ₹3.77 per liter in Delhi. On this, a further VAT of Rs 21.36 is being added. VAT accounts for about 22% in Delhi. Then comes the final retail selling price of petrol of 92.58 a liter in Delhi. (On May 16).
Diesel:
The retail price of diesel was Rs 83.22 a liter in the capital on May 16, according to Indian Oil data. The base price is fixed at Rs 36.32. With a freight levy of Rs 0.33, the price charged to dealer comes at Rs 36.65. Then, add an excise duty of Rs 31.80 on it. The dealer’s commission on diesel is Rs 2.58 in Delhi. A further VAT of Rs 12.19 is being added to it.
The Center raised excise duty by Rs 13 on petrol and Rs 16 on diesel between March 2020 and May 2020. The duty now stands at ₹31.8 on diesel and ₹32.9 on petrol. VAT varies from state to state. Madhya Pradesh, Rajasthan levy over 30% VAT – the highest among states. The dealer’s charge is different for petrol and diesel. The commission also varies with the location of fuel pumps, ranging from Rs 2-4 per litre.
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