Fuel Price Hike: Petrol beyond Rs 100 in Mumbai; know how much is the actual cost and how much goes in taxes
New Delhi | Jagran Business Desk: Petrol prices reached the grim milestone of Rs 100 on Saturday after the 15th hike in a month. Already, several cities in Rajasthan, Maharashtra and Madhya Pradesh had petrol retailing above Rs 100. However, it was for the first time that petrol prices went beyond Rs 100 in a metro city.
In the month of May so far, the petrol prices have increased by Rs 3.30 per litre and diesel by Rs 3.89 per litre. Here’s a look at how much you pay in taxes on petrol and diesel:
Let’s say the petrol has been priced at Rs 92.58 per litre on a given day in Delhi. According to the government-owned Indian Oil, the base price of petrol is Rs 34.19 per litre. The freight levy (transportation cost) is fixed at Rs 0.36, which takes the basic price of petrol to Rs 34.55.
Everything apart from this is tax in some form – excise duty (Rs 32.89), dealer commission (Rs 3.77 per litre), and Value Added Tax (VAT: Rs 21.36). All of this combined together takes the total price to Rs 92.58.
Let’s say the retail price of diesel is Rs 83.22 on a given day in the national capital.
Total price = (Base Price + Freight Levy) + Excise duty + Value Added Tax + Dealer Commission
= (Rs 36.32 + Rs 0.33) + Rs 31.80 + Rs 12.19 + Rs 2.58
= Rs 83.22 per liter.
After remaining stable for eighteen straight days, the first petrol hike in the month of May took place on May 4. Following which the hike continued for four straight days until May 8. Post May 8, the petrol price hike kept on happening on alternate days until Saturday, May 29. Petrol on Saturday reached an all-time high in Delhi and Mumbai at Rs 93.94 and Rs 100.19 respectively.
Posted By: Mukul Sharma