How does the price of Rs 25 petrol reach Rs 81 when it reaches you? How Much Money Do Governments Make?

New Delhi, 24 November 2020 Tuesday

Petrol and diesel are things whose prices are constantly rising. Which, of course, made the video an overnight sensation. It is often said that the price of crude oil in the international market is going down.

Even so, petrol and diesel prices are not falling in our country. What is the reason for this? And how does the price of petrol and diesel go up 3 times with your reach? How do governments benefit from this? Let's understand

Today, the price of a liter of petrol in all the states is around Rs 81. About 50 per cent of the total price of petrol goes to the Center and the state government, not to the companies. The price of petrol sold at Rs 81.06 is Rs 25.37. The processing charge is Rs 0.36.

So, after deducting taxes, the cost of a liter of petrol is Rs 25.73. But it costs Rs 32.98 excise duty, Rs 3.64 dealer commission, Rs 18.71 of VAT levied by the state government. So you have to pay Rs 81.06 for petrol costing Rs 25.73.

The cost of 1 liter of diesel is Rs 25.42. The processing charge is Rs 0.33. While excise duty costs Rs 31.83 ... plus Rs 2.52 dealer's commission and VAT with commission is Rs 10.36. That means everyone has to pay Rs 70.46 for a diesel priced at Rs 25.42.

People were hoping for relief in petrol and diesel prices from the historic fall in crude oil prices in international markets. But the government slashed petrol and diesel prices. In 2014, the tax on petrol was Rs 9.48 per liter and Rs 3.56 on diesel. In which from November 2014 to January 2016 the Central Government increased 9 times. In these 15 weeks, the duty on petrol was hiked by Rs 11.77 per liter and diesel by Rs 13.47 per liter.

According to PPAC, in the first quarter of this year, i.e. from April to June, the government raised Rs. 49,914 crore. These earnings would have been higher if the lockdown had not been imposed due to Corona.

According to PPAC, state governments earned Rs 29,812 crore in the first quarter of this year through VAT, sales and various taxes. The Telangana government collects the highest VAT in the entire country. There is a 35.20% tax on petrol and a 27% VAT on diesel. It is followed by Tamil Nadu and Madhya Pradesh.