Consumers Pay Over 95 Rupees in Taxes Per Liter of Petrol and Diesel
When you fill up your car or motorcycle with petrol or diesel, you are required to pay over 95 rupees in taxes per liter. For instance, if you pay 1022 rupees and 52 paise for 4 liters of petrol, the actual price of the petrol is only 641.72 rupees. The remaining 380 rupees and 8 paise are taxes, which means that the total tax paid per liter, including a levy of 70 rupees, amounts to 95 rupees and 2 paise.
In addition to the taxes, there are other charges such as the distribution margin of 7 rupees and 87 paise, oil companies’ profit of 8 rupees and 64 paise, a freight margin of 5 rupees and 33 paise, and an exchange adjustment of 3 rupees and 18 paise.
Similarly, for 4 liters of diesel, the total cost comes to 1034 rupees. The base price of the diesel is 672 rupees and 8 paise, while 361 rupees and 76 paise is purely tax. This means that the price of diesel before taxes is just 168 rupees and 2 paise per liter, but after the inclusion of 90 rupees and 44 paise in taxes, the price increases substantially.
