Petrol, diesel prices reach all-time high as OMCs hike rates amid demand outlook | Here's how much tax you pay on fuel now
New Delhi | Jagran Business Desk: Since the election commission (EC) declared the results of assembly polls in four states -- West Bengal, Tamil Nadu, Kerala and Assam -- and union territory (UT) of Puducherry, fuel prices have been hiked seven times this month, making petrol and diesel prices all-time high in Delhi and Mumbai.
In Delhi, petrol now costs Rs 92.05 a litre and diesel is at Rs 82.61. In less than two weeks, the petrol and diesel prices have become expensive by Rs 1.65 and Rs 1.88 respectively.
In India, the price of fuel depends on international crude oil prices and the exchange rate of the rupee-dollar. The central and state governments also levy heavy taxes such as Value Added Tax (VAT) and excise duty on the purchase of petrol and diesel. On top of it, freight charges and dealer's commission are also added to the fuel prices.
How much tax do you pay for fuel in Delhi?
The basic price of petrol is Rs 32.61, according to Indian Oil which is a state-run oil marketing company. On it, the freight levied is O.28 paisa that is fixed. The price that dealers pay for petrol in the capital is Rs 32.89 which does not include excise duty or VAT. On the other hand, the excise duty levied on petrol is Rs 32.89. Plus the dealer’s commission is Rs 3.75 per litre in Delhi. Further, a VAT of Rs 20.86 is added to the cost. This makes the final retail selling price of petrol in Delhi at Rs. 90.40, as of May 1.
The basic price of diesel is fixed at Rs 34.27, according to Indian Oil. Adding freight of Rs. 0.25 it is provided to the dealer at Rs 34.52. Then excise duty of Rs 31.80 and VAT of Rs 11.83 is added to the total price making it Rs 80.73 a litre as of May 1. The dealer's commission on diesel in Delhi Rs 2.58.
Between March and May 2020, the Centre raised excise duty by Rs 13 on petrol and Rs 16 on diesel. However, VAT varies from state to state. The highest VAT of 30 per cent is levied by Madhya Pradesh and Rajasthan.
Posted By: Sugandha Jha