How petrol price is calculated in India
The 'fuel fire' created by the hike in petroleum prices announced by Manmohan Singh government on Wednesday continues. The Left parties and the Bharatiya Janata Party are holding strikes across the country to protest the fuel price hike.
Do you know how the fuel price is calculated in India?
Suppose if the petrol price per litre in Chennai is Rs 51.90, here the break-up of cost calculated by the government:
So for a Rs 22 litre petrol at pumps, consumers in India pay Rs 28 tax extra.
The 'fuel fire' created by the hike in petroleum prices announced by Manmohan Singh government on Wednesday continues. The Left parties and the Bharatiya Janata Party are holding strikes across the country to protest the fuel price hike.
Do you know how the fuel price is calculated in India?
Suppose if the petrol price per litre in Chennai is Rs 51.90, here the break-up of cost calculated by the government:
- Basic Price = Rs 21.93
- Excise duty = Rs 14.35
- Education Tax = Rs 0.43
- Dealer commission = Rs 1.05
- VAT = Rs 5.5
- Crude Oil Custom duty = Rs 1.1
- Petrol Custom = Rs 1.54
- Transportation Charge = Rs 6.00
- Total price = Rs 51.90
So for a Rs 22 litre petrol at pumps, consumers in India pay Rs 28 tax extra.
