Petrol Stop - 'Taxes, duties comprise 50% of petrol price in Delhi'

Petrol Stop Home

'Taxes, duties comprise 50% of petrol price in Delhi'

Monday, 13 July 2009

13 July 2009;business-standard.com:New Delhi: Almost half of the retail price of petrol of Rs 44.63 a litre in the national capital comprises taxes and duties, Minister of State for Petroleum and Natural Gas Jitin Prasada said today. After the Rs 4 per litre increase in the petrol price and Rs 2 a litre hike in the diesel rate announced earlier this month, the retail selling price of the two auto fuels in Delhi is Rs 44.63 per litre and Rs 32.87 a litre, respectively. The petrol price includes excise duty of Rs 13.75 per litre and VAT accounts for Rs 7.44 a litre. Another 46 paise a litre is because of customs duty, taking the total of taxes and duties in the retail selling price to Rs 21.65 a litre, Prasada informed the Rajya Sabha in the national capital. As for diesel, taxes and duties make up for a relatively low Rs 8.11, or about one-fourth of the retail selling price. Local VAT contributes Rs 3.90 a litre to the diesel price while excise duty makes up for Rs 3.71 per litre. Besides, the customs duty component comes to 50 paise a litre, he added. Currently, petrol attracts a basic central excise duty of Rs 5.35 a litre plus Rs 6 a litre special additional excise duty. Diesel on the other hand an excise duty of Rs 1.60 per litre. Besides, Rs 2 a litre is levied on petrol and diesel as road cess. VAT in Delhi is 12.5 per cent and 4 per cent on petrol and diesel, respectively. Customs duty on the two fuels is at 2.5 per cent.