Last Updated : May 07, 2020 03:00 PM IST | Source: Moneycontrol.com

Petrol price hike: Here's how much you pay in taxes for a litre of petrol or diesel

The hike in duty has taken away gains from falling global crude oil prices.

The Centre on May 5 hiked excise duty on petrol and diesel by Rs 10 and Rs 13 respectively. These duty rate changes come into effect from May 6. The hike in duty has taken away gains that the consumer had from falling global crude oil prices.

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On May 4, Delhi government had increased petrol prices by Rs 1.67 to Rs 71.26 per litre and diesel by Rs 7.10 to Rs 69.29 per litre.

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So how much does one pay in taxes if they fill up a litre of petrol or diesel in Delhi?

Let's take Petrol prices first.

Here is break-up of charges in a litre of petrol in Delhi. This price buildup of Petrol at Delhi effective May 6.
ElementsUnitDelhi
Base PriceRs/Litre17.96
Freight etcRs/Litre0.32
Price Charged to Dealers (excluding Excise Duty and VAT)Rs/Litre18.28
Add : Excise DutyRs/Litre32.98
Add : Dealer Commission (Average)Rs/Litre3.56
Add : VAT (including VAT on Dealer Commission)Rs/Litre16.44
Retail Selling Price at Delhi- (Rounded)Rs/Litre71.26

Source: Indian Oil Corporation

That comes to as much as Rs 49.42 or a whopping 69.35% of what you pay goes as taxes for buying a litre of petrol.

Now, here is a break-up for prices of diesel in Delhi.
ElementsUnitDelhi
Base PriceRs/Litre18.49
Freight etcRs/Litre0.29
Price Charged to Dealers (excluding Excise Duty and VAT)Rs/Litre18.78
Add : Excise DutyRs/Litre31.83
Add : Dealer Commission (Average)Rs/Litre2.52
Add : VAT (including VAT on Dealer Commission)Rs/Litre16.26
Retail Selling Price at Delhi- (Rounded)Rs/Litre69.39

Source: Indian Oil Corporation

This means you pay Rs 48.09 as taxes or 69.30% of the total cost you pay to buy a litre of diesel as taxes in Delhi.

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First Published on May 6, 2020 04:27 pm
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