Petrol Price Crosses Rs 102 per litre in Mumbai. Know Why Fuel is So Costly in India

25
Petrol Price Crosses Rs 102 per litre in Mumbai. Know Why Fuel is So Costly in India

There seems to be no respite for the common man as fuel prices continue to rise in the country. The state-run oil marketing companies have hiked the petrol and diesel prices again on Friday. With the recent hike, petrol has touched a record high of Rs 102 for a litre in Mumbai on June 11. A litre of petrol costs Rs 95.85 in the national capital, highest ever. While petrol has become expensive by up to 31 paise, diesel is costlier by up to 28 paise on Friday, according to Indian Oil Corporation.

Fuel prices have been soaring since the beginning of May. State-run companies resumed daily revisions on May 4 after an over 18-day halt. Since then, petrol price has risen by over Rs 6 per litre.

Petrol is retailing above the ₹100 per litre mark in six states and union territories — Rajasthan, Madhya Pradesh, Maharashtra, Andhra Pradesh, Telangana and Ladakh.

Diesel prices have also witnessed a sharp increase in last one month. In Mumbai, a litre of diesel is being sold at ₹94.15 for a litre. Diesel price has climbed to Rs 86.75 for a litre in Delhi on Friday.

The price of auto fuel in India depends on international crude oil prices, rupee-dollar exchange rate. Moreover, the central government and states levy various taxes — excise duty and Value Added Tax (VAT) on petrol and diesel. Dealer’s commission and freight charges are also added in the fuel price. It must be noted that petrol and diesel do not come under the purview of goods and services tax (GST).

How much tax you pay on a litre of petrol and diesel in Delhi

Petrol:

Let’s consider the petrol price of Rs 94.49 a litre on June 1 in Delhi. The base price of the petrol is Rs 35.63, according to state-run oil marketing company Indian Oil. The freight levy is fixed at ₹0.36. The dealers pay Rs 35.99 of petrol in the capital. This price does not include excise duty or VAT. The excise duty levied on petrol is Rs 32.90. The dealer commission is ₹3.79 per litre in Delhi. On this, a further VAT of Rs 21.81 is being added. VAT accounts for about 22% in Delhi. Then comes the final retail selling price of petrol of 94.49 a litre in Delhi. (On June 1).

Diesel:

The retail price of diesel was Rs 85.38 a litre in the capital on June 1, according to Indian Oil data. The base price is fixed at Rs 38.16. With a freight levy of Rs 0.33, the price charged to dealer comes at Rs 38.49. Then, add an excise duty of Rs 31.80 on it. The dealer’s commission on diesel is Rs 2.59 in Delhi. A further VAT of Rs 12.50 is being added to it.

Union petroleum and natural gas minister Dharmendra Pradhan on Monday blamed the recent surge in global crude oil prices for the fuel price hike in India. “The prices of petroleum products have gone up. The main reason is that the price of crude oil has gone over $70 (per barrel) in the international market. This negatively impacts consumers here, as India imports 80 per cent of its oil requirement,” he said.

Oil prices slipped on Friday but were set for their third weekly rise on expectations for a recovery in fuel demand in Europe, China and the United States. Brent crude futures fell 23 cents, or 0.3%, to $72.29 a barrel at 0145 GMT, reversing most of Thursday’s climb to its highest close since May 2019. US West Texas Intermediate (WTI) crude futures slipped 22 cents, or 0.3%, to $70.07 a barrel, after climbing 0.5% on Thursday to its highest close since October 2018.

Read all the Latest News, Breaking News and Coronavirus News here

Source link

Hi, my name is Ankita Dixit. I started writing from young age and most of my writing skills and knowledge are self taught. Currently, I am working as a professional writer at Paisa.co. I have write on various topics including travel, motivation, finance, technology, credit cards, insurance and entrepreneurship etc.