Know how much the dealer gets when he sells petrol, diesel

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The Hush Post:  Diesel prices too have reached an all-time high of Rs 64.69 in Delhi.

In the financial capital of Mumbai, the prices were even higher given the higher rate of VAT by the Maharashtra government.

Following is the detailed break-up of the non-branded petrol price (on April 2) you pay in Delhi:

 

Addition of elements Prices (in Rupees per litre)
Crude oil 28.35
C&F (Cost & Freight) Price (Moving average basis) 31.08
Price charged to dealers (excluding excise duty and VAT) 35.05
Add: Excise Duty Basic excise duty 4.48 19.48
Special additional excise duty 7
Road and infra cess 8
Add: Dealer commission (average) 3.60
Add: VAT- Delhi (including VAT on Dealer Commission) @27% 15.70
Retail selling price 73.83

Similarly, this is the detailed price (on April 2) as one pays in the national capital:

Addition of elements Prices (in Rupees per litre)
Crude oil 28.35
C&F (Cost & Freight) Price (Moving average basis) 33.16
Price charged to dealers (excluding excise duty and VAT) 37.31
Add: Excise duty Basic excise duty 6.33 15.33
Special additional excise duty 1
Road and infra cess 8
Add: Dealer commission (average) 2.52
Add: VAT- Delhi (including VAT on Dealer Commission) @17.30% 9.53
Retail selling price 64.69

India accounts for highest retail prices of both  petrol and diesel among all the South Asian countries as taxes account for half of the pump rates.

Indian Oil Corporation provides per litre of petrol to dealers at Rs 35.05, charging Rs 3.07 for freight and other logistic charges and Rs 3.63 for marketing, margin, freight and sundry charges.

At this point, the level of dealers, excise duty to the tune of Rs 19.48 is levied by the central government. Add average dealer commission of Rs 3.60 and the price shoots up to Rs 58.08 per litre of petrol.

Now every state government levies a different rate of value added tax and surcharges, the reason petrol prices vary across India.

In the national capital, the state government levies 27 per cent VAT on petrol. In Rupee terms, the total VAT in Delhi pegs at Rs 15.70 per litre, taking the petrol prices to Rs 73.83.

The highest VAT on petrol is charged in Mumbai, Thane and Navi Mumbai region at 40.37 per cent.

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