More than half the cost of per litre of petrol is just taxes; Cheapest petrol in Port Blair, Mumbai most expensive

Highlights

• Port Blair has the cheapest price of petrol at Rs 57.95 per litre
• A litre of petrol in Mumbai costs Rs 78.44
• Rs 35.70 per litre is only taxes 

Indian Oil Corp (IOC) on Wednesday announced petrol price hike by Rs 1.23 per litre and diesel by 89 paise a litre in order to compete with rising international fuel rates. 

Announcing the price hike, Indian Oil Corp (IOC), the nation's largest fuel retailer, said the rates have been hiked excluding local state levies or VAT and actual increase will be higher depending on tax rate.

With the new petrol price coming into immediate effect, now petrol will cost Rs 66.91 per litre in Delhi. Similarly, a litre of diesel will be priced at Rs 55.94 (rpt) Rs 55.94, as compared to Rs 54.90 at present.

ALSO READ: Petrol price hiked by Rs 1.23/litre, diesel by 89 paise

Now if you look at the figure Rs 66.91, how the company calculated this number, then here it is.

Rs 35.7 is only excise duty and Value Added Tax (VAT) on a litre of petrol that costs Rs 66.91 per litre in New Delhi. 

Clearly, from the above table, more than half of the retail selling price are taxes. Excise Duty is Rs 21.48 per litre and Value Added Tax (VAT) is Rs 14.22, and the total is Rs 35.7 per litre. 

Now, look at the petrol prices in other cities:

In Port Blair petrol prices is cheapest at Rs 57.95 per litre and the petrol is most expensive in Mumbai at Rs 78.44 per piece. 

Time to shift to new city!