Fuel price hike: How government taxes have made fuel costlier

The surge in fuel prices almost every day is largely due to a combination of high excise duty in the country and rise in crude oil rates.

Published: 07th September 2018 02:52 PM  |   Last Updated: 07th September 2018 03:57 PM   |  A+A-

fuel,petrol,oil,diesel

Image for representational purpose only. (File Photo | Reuters)

By Online Desk

Fuel prices resumed its northward march with petrol being sold at Rs 79.99 per litre in the national capital on Friday breaking all previous record highs.

The surge in fuel prices almost every day is largely due to a combination of high excise duty in the country and rise in crude oil rates.

READ | Fuel prices soar: Check rates in major cities

According to Indian Oil Corp (IOC) data as on 3rd September, petrol is charged at Rs 39.21 per litre to dealers in Delhi. On top of that, the government levies Rs 39.94 in taxes which includes Rs 19.48 on Excise Duty, Rs 3.63 on Dealer Commission and Rs 16.83 on VAT (including VAT on Dealer Commission), pushing the fuel's Retail Selling Price to Rs 79.15 per litre in the national capital. 

READ | Congress to organise Bharat Bandh against fuel prices on September 10

On the other hand, petrol is being sold at Rs 87.39 per litre, and diesel at Rs.76.51 per litre in Mumbai.

The chart clearly shows the price buildup of petrol at Delhi:

 

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