Notes:
1. For Petrol and Diesel, taxes considered for computing effective tax rate includes Sales tax ,VAT, Cess, Additional tax & Surcharge etc. which are recoverable in price as taxes excluding Central levies & CST.
2. For Petrol and Diesel, in addition to the above taxes, State Government of Bihar and West Bengal, levies additional tax/surcharge on VAT @ 30%/20% respectively which is irrecoverable in nature.
3. Effective rate of tax has been worked out based on the % of total taxes (taxes as per note 1 above) to retail selling prices excluding these total taxes.
4. For Petrol & Diesel, VAT/Sales Tax at applicable rates is also levied on Dealer’s commission in Arunachal Pradesh, Delhi, Gujarat, Haryana, Madhya Pradesh, Punjab, Chandigarh, Puducherry, Andaman & Nikobar, Meghalaya , Dadar Nagar Haveli and Daman & Diu.
Dealer commission
It may be recalled that last year in August, state oil companies had increased the commission for petrol pump dealers by up to 55% under a revised formula that accounts for higher staff wages and, for the first time, the return on investment in land used for the filling station. The commission varies a little with the location of fuel pumps. For petrol, it is between Rs 3 and Rs 3.65 per litre. For diesel, it is between Rs 2 and Rs 2.62 per litre.
Retail price
After adding excise duty, dealer commission and VAT, the retail selling price of the petrol gets nearly doubled.
Recently, the government ruled out excise duty cut on petrol and diesel to cushion the sky-rocekting prices. It believes the current account deficit will overshoot the target and it cannot disturb fiscal math by cutting excise duty on petrol and diesel.
The excise duty on petrol was increased by by Rs 11.77 a litre and that on diesel by 13.47 a litre between November 2014 and January 2016 by the central government. Later, in October last year, excise duty was marginally cut by Rs 2 a litre.
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What our neighbours pay for one litre petrol |
|
Pakistan |
INR 57.83 |
|
Sri Lanka |
INR 64.12 |
|
Nepal |
INR 68.30 |
|
Bangladesh |
INR 73.06 |