Petrol, diesel prices hiked again. Here are revised fuel rates
What's the story
Petrol and diesel prices set new records today as they continued their upward march on fall in rupee and surge in global crude oil rates. Petrol price was raised by 12p/liter and diesel by 10p/liter, the state fuel retailers' price notification stated. The hike pushed the petrol price in Delhi to Rs. 80.50/liter while diesel touched its highest level of Rs. 72.61/liter. Here's more.
Fuel prices
Opposition parties call for 'Bharat Bandh' over fuel prices
Fuel prices in Delhi touched new high where petrol and diesel are the cheapest among all metros and most state capitals due to lower taxes. Opposition parties have called for a nation-wide 'Bharat Bandh' on September 10 to protest against the spiraling fuel prices. They blame the government's unwillingness to cut excise duty for the high fuel prices and consumer burden.
Information
Petrol hiked by Rs. 3.42/liter since mid-August
Since mid-August, petrol price has risen by Rs. 3.42/liter and diesel by Rs. 3.84/liter as the rupee hit a record low against the US dollar, making imports costlier. Almost half of the retail selling price of the two fuels consists of central and state taxes.
Details
Center levies excise duty of Rs 19.48/liter on petrol
According to oil companies, petrol at refinery gate costs around Rs. 40.50/liter and diesel Rs. 43/liter. The Center currently levies a total excise duty of Rs 19.48/liter on petrol and Rs. 15.33/liter on diesel. On top of this, the states levy Value Added Tax (VAT) - the lowest being in Andaman and Nicobar Islands where 6% sales tax is charged on both the fuels.
Information
Highest VAT on petrol and diesel
Mumbai has the highest VAT of 39.12% on petrol, while Telangana levies the highest VAT of 26% on diesel. Meanwhile, Delhi charges a VAT of 27% on petrol and 17.24% on diesel.
Excise Duty
Excise duty on diesel increased by Rs. 13.47/liter in 4yrs
The Center raised excise duty on petrol by Rs. 11.77/liter and on diesel by 13.47/liter in nine installments between Nov'14-Jan'16 to shore up finances as global oil prices fell. But it cut the tax only once in Oct'17 by just Rs. 2/liter. However, the excise collections from petro goods more than doubled, from Rs. 99,184 crore in 2014-15 to Rs. 2,29,019 crore in 2017-18.