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Duty Hike Effect: Taxes Exceed Actual Cost Of Petrol [Analysis]
Petrol at the moment costs Rs 60.70/- per litre in Delhi. However, 50 percent of the cost, i.e., Rs 31.20/- is the tax charged by the Indian government. As of today, the cost of making petrol is only Rs. 24.75/- per litre. So, why are we paying Rs. 60.70/-? Here is a closer look at the petrol cost breakup.
–
The
cost
of
making
petrol:
Rs.
24.75/-
–
The
cost
of
petrol
sold
to
dealer:
Rs.
27.24/-
–
Excise
duty
collected
by
Centre:
Rs.
19.06/-
–
VAT
or
Sales
tax
per
litre:
Rs.
12.14/-
–
Dealer
(petrol
pump)
commission:
Rs.
2.26/-
Now, adding the cost of what the dealer gets from the refinery, excise duty, VAT, and the dealer commission, we end up paying Rs. 60.70/- for a litre of petrol. The VAT and excise duty alone costs a consumer Rs. 31.20/- for a litre of petrol.
On the flipside, diesel is priced at Rs. 45.93/- in Delhi for a litre. Here is a closer look at the diesel cost breakup.
–
The
cost
of
making
diesel:
Rs.
24.86/-
–
The
cost
of
petrol
sold
to
dealer:
Rs.
27.05/-
–
Excise
duty
collected
by
Centre:
Rs.
10.66/-
–
VAT
or
Sales
tax
per
litre:
Rs.
6.79/-
–
Dealer
(fuel
pump)
commission:
Rs.
1.43/-
Now, adding the cost of what the dealer gets from the refinery, excise duty, VAT, and the dealer commission, we end up paying Rs. 45.93/- per litre. The VAT and excise duty alone costs a consumer Rs. 17.45/- for a litre of diesel.
Do you feel cheated regarding all the taxes you are paying to the government?