Categories: Business

India now has the highest taxes on fuel in the world; Government is filling its pockets by selling expensive petrol and diesel to the public, the world's highest tax in India

Photo: GOOGLE

India now has the highest taxes on fuel in the world

new Delhi. On one hand people are losing their jobs due to Corona virus crisis. Salaries are being cut and businesses are stalled. On the other hand, government oil marketing companies are continuously increasing the price of petrol and diesel. In the country's capital, Delhi, petrol costs Rs 80.43 per liter and diesel costs Rs 80.53 per liter. The base prices of both major fuels are Rs 24.92 per liter and Rs 27.03 per liter respectively. How petrol with base price of Rs 24.92 in Delhi is being sold for Rs 80.43 liter and diesel of Rs 27.03 with base price of Rs 80.53. To know this, by looking at the price buildup available on IndianOil's website, the whole matter becomes open.

The base price of petrol is Rs 24.92 per liter. After paying the freight at the rate of 33 paise per liter, it becomes available to the petrol pump for Rs 25.25 per liter. Excise duty on this is Rs 32.98 per liter. The retail sales price of petrol becomes Rs 80.43 a liter after the dealer's average commission of Rs 3.64 a liter and the value added tax (VAT) of Rs 18.56 a liter.

India now has the highest taxes on fuel in the world

Similarly, the base price of diesel is Rs 27.03 per liter. After paying freight at the rate of 30 paise per liter on this, diesel is available at the rate of Rs 27.33 per liter. The excise duty on this is Rs 31.83 per liter. The retail sales price of diesel becomes Rs 80.53 a liter after the dealer's average commission is Rs 2.54 a liter and the value added tax (VAT) is Rs 18.83 a liter. Petrol price in Delhi is Rs 80.43 per liter, tax of Rs 51.54 per liter. Similarly, diesel costs Rs 50.66 per liter for Rs 80.53 per liter.

Oil companies have been reviewing prices since June 2017 on a daily basis. The government on March 14 increased the excise duty on petrol and diesel by Rs 3 per liter with the intention of taking advantage of the fall in crude oil prices due to the corona virus epidemic in the international market. Thereafter, oil companies Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) stopped the daily review of prices. After that the government again increased the excise duty on petrol by Rs 10 per liter and on diesel by Rs 13 per liter. This two-time increase gave the government additional tax revenue of Rs 2 lakh crore.

This post was published on July 2, 2020 10:42 am

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