India now has the highest taxes on fuel in the world!
That means every litre of petrol in Delhi that currently retails at Rs 71.26 includes taxes of Rs 49.42 while for every litre of diesel at Rs 69.39 it is Rs 48.09. Taxes now comprise over 69 per cent of the pump price of the two fuels
New Delhi: This after the steepest ever hike in excise duty by Rs 13 per litre on diesel and Rs 10 per litre on petrol on Tuesday night, repo. On Monday, the government had also increased road cess on petrol and diesel by Rs 8 per litre. Further, additional excise duty was also hiked by Rs 2 per litre (on petrol) and Rs 5 per litre (diesel). Also on Tuesday, the state government in Delhi hiked value added tax which goes to its own kitty by Rs 7.1 per litre on diesel and Rs 1.6 per litre on petrol.That means every litre of petrol in Delhi that currently retails at Rs 71.26 includes taxes of Rs 49.42 while for every litre of diesel at Rs 69.39 it is Rs 48.09. Taxes now comprise over 69 per cent of the pump price of the two fuels — the highest in any part of the world.
Source: Petroleum Planning &
Analysis Cell, IOCLet’s put it in perspective. In Delhi dealers pay Rs 18.28 per litre for petrol, including the base price and freight. After levying VAT, excise and dealer commission, the retail price shoots up to Rs 71.26 for a litre. Similarly, for diesel, dealers pay Rs 18.78 a litre.
Excise duty: On petrol, the duty levied is Rs 32.98 a litre, while on diesel it is Rs 31.83 per litre.
VAT: It varies from state to state, with Madhya Pradesh, Kerala, Rajasthan, Karnataka levying over 30 per cent VAT — the highest among states.Dealer commission: Is different for petrol and diesel and varies a little with the location of fuel pumps, ranging from Rs 2-4/litre. In Delhi, the dealer commission is Rs 3.57 a litre, while on diesel it is Rs 2.51.Now, the government is expected to gain close to Rs 1.6 lakh crore in additional revenues this fiscal from the excise duty hikes. But while it has delayed the release of monthly GST figures, several state governments like Delhi, Andhra Pradesh, Assam and West Bengal have reported a 90 per cent drop in tax collections in April. However, the increase in duty on fuel is however unlikely to offer any major relief to the government as demand for oil in the country has also taken a big hit.