New Delhi, Nov 29: The excise duty on petrol Rs 14.78 per litre and on diesel Rs 2.06 per litre had made petroleum products costlier than neighbouring countries and even US. Petrol in Delhi today costs Rs 66.42 per litre as against Rs 44.88 a litre price in the US.
The government has always been criticised for the skewed tax structure on petrol and diesel. The minister, however, said the central government’s revenue does not increase with increase in the price of these products as the excise duties were specific.
Even after the November 16 reduction of Rs 2.22 per litre in rates, petrol at Rs 66.42 a litre in Delhi is costlier than Rs 48.64 a litre in Pakistan.
In Sri Lanka, petrol costs Rs 61.38 per litre, in Bangladesh it is priced at Rs 52.42 a litre, and in landlocked Nepal, it is sold at Rs 65.26 per litre.
However, petrol in Europe is costlier than in India. In the United Kingdom, it is priced at Rs 104.60 per litre. The US has only Rs 5.32 per litre tax on petrol, while it is Rs 62.47 a litre in the UK.
Petrol price in India has risen 39 per cent or Rs 18.49 per litre, since April 2010. Petrol in Delhi cost Rs 47.63 per litre last year. Nearly 45 per cent of the current retail price of petrol in Delhi is made up of taxes.
Besides, Rs 14.78 per litre is the excise duty component and Rs 11.07 a litre is the sales tax that Delhi government charges. Another Rs 1.50 is the commission that petrol pump dealers earn.
The refinery price of petrol is just Rs 36.82 per litre, on top of which Rs 2.25 is inland freight and marketing cost and margin is added.
The VAT in Delhi for petrol is 20 per cent and for diesel is 12.5 per cent. The revenue for diesel in Delhi is much more than central government through central excise.
No comments:
Post a Comment