Fuel-o-nomics: Check out the costs and taxes that add up to your fuel bill
With fuel prices scaling to new highs, check out how much you end-up paying in taxes and what’s the case in other countries.
January 21, 2021 / 12:51 PM IST
4. You could also ask the attendant to lock the nozzle in place and let go. Pumps usually have an auto cut-off system that cuts off supply when the desired quantity is reached or the tank is full (whichever comes earlier). (Representative image)
Fuel prices once again scaled with petrol reaching an all-time high in Delhi at Rs 85.20 per litre on January 19. While a litre of diesel in Delhi now costs Rs 75.38. Petrol price in Mumbai hit Rs 91.80 and Diesel Rs 82.13.
Let’s take a look at how much one ends up paying in taxes and commission:
Considering the retail price of petrol on January 16 in Delhi at Rs 84.70 per litre, nearly 67 percent or Rs 56.6 are paid up as taxes, dealer commission and freight. Likewise, the retail cost of one litre Diesel was Rs 74.88, of which 61 percent or Rs 45.7 was added as taxes, freight and commission.
Excise duty jumped to 48 percent in the current fiscal as a result of a record increase in taxes on petrol and diesel, that more than made up for the below normal fuel sales. Excise duty collection was at Rs 1,96,342 crore during April-November 2020. During 2019-20 fiscal, excise collection totalled Rs 2,39,599 crore, with central excise duty making up for 39 percent of petrol and 42.5 percent of diesel.
Here’s a comparison of fuel prices and taxes in India and developed countries: