The price of gasoline hit a record high of 100 rupees per liter in Mumbai on Saturday. Domestic fuel prices have risen sharply since the beginning of this month. After an 18-day break, state oil marketing companies resumed daily revisions to fuel prices on May 4. Since then, the price of gasoline has increased by Rs 3.30 per liter and the price of diesel has increased by Rs 3.89.
Petrol also reached an all-time high in the state capital on Saturday. In Delhi, gasoline costs Rs 93.94 per liter, while diesel sells for Rs 84.89. In Mumbai, the price of gasoline rose to 100.19 rupees on May 29th. A liter of diesel is available in the financial capital for 84.89 rupees.
The price of auto fuel in India is dependent on international crude oil prices and the rupee to dollar exchange rate. In addition, the central government and states levy various taxes – consumption tax and value added tax (VAT) on gasoline and diesel. Dealer commission and freight costs are also added to the fuel price. It should be noted that petrol and diesel are not subject to the goods and services tax (GST).
How much tax do you pay in Delhi for a liter of gasoline and diesel?
Let us consider the gasoline price of 92.58 rupees per liter on May 16 in Delhi. The base price of the gasoline is Rs 34.19, according to the state-owned oil marketing company Indian Oil. The freight tax is £ 0.36. The dealers pay Rs 34.55 gasoline in the capital. This price does not include excise tax or VAT. The excise duty on gasoline is Rs 32.89. The Delhi dealer commission is £ 3.77 per liter. To this is added another sales tax of Rs 21.36. VAT is around 22% in Delhi. Then comes the final gasoline retail price of 92.58 per liter in Delhi. (May 16).
The retail price for diesel was 83.22 rupees per liter in the capital on May 16, according to Indian Oil. The base price is set at Rs 36.32. For a freight tax of Rs 0.33, the price billed to the merchant is Rs 36.65. Then add an excise duty of Rs 31.80. The Delhi dealer’s diesel commission is 2.58 rupees. Another sales tax of Rs 12.19 is added.
The center increased the excise tax by 13 rupees for gasoline and 16 rupees for diesel between March 2020 and May 2020. The tax is now £ 31.8 for diesel and £ 32.9 for gasoline. Sales tax varies from state to state. Madhya Pradesh, Rajasthan, has a sales tax of over 30% – the highest among the states. The dealer fee is different for gasoline and diesel. The commission also varies with the location of the fuel pumps and ranges from 2 to 4 rupees per liter.
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