You Are Paying 275% In Taxes On Petrol To Govt; 157% Increase Since February
In the last few months, Govt of India has slowly but steadily increased taxes on petrol and diesel, and the way it was done, no one even complained.
But a recent report by Deccan Herald shows some stunning facts: In the last 5 months, since February 2020, consumers have experienced a massive 157% increase in the taxes which we pay on petrol and diesel to Govt.
Right now, consumers are paying 275% tax on petrol to Govt.
Consumers Paying 275% Tax On Petrol
As of now, an average consumer of petrol is paying 275% tax on petrol to Centre and State Govt.
It was 107% in February, which is an increase of 157% since then.
While the base price of petrol is just Rs 18/litre, the taxes are close to Rs 50, and the price which you pay at the petrol pumps is close to Rs 72 for a liter.
While on the purchase of diesel, the average consumer is paying 255% taxes to Centre and State Govt.
The base price of diesel of Rs 18.50, while at the petrol pump, you are paying close to Rs 70 per litre.
Decoding The Excise Duty On Petrol and Diesel
Govt of India has slowly but gradually increased the overall excise duty which we pay on petrol and diesel, and this has hit the consumer hard.
On petrol, Govt is charging excise duty of Rs 33/litre, and on diesel, the excise duty is Rs 32 per litre.
At the same time, there is VAT or Value Added Tax.
There is Rs 16 VAT on both petrol, and diesel.
Hence, overall, an average consumer is paying Rs 49 extra on the petrol, which makes the price at the petrol pump Rs 72 for a litre.
These two taxes constitute 69% of the petrol pump price for petrol, which is highest in the world.
While US charges 19% in tax for petrol, Japan charges 47%, UK charges 62% and France charges 63%.
Even as the global fuel prices dipped, Govt increased excise duty on petrol and diesel by Rs 13, twice in the last 4 months.
Yesterday, Govt hiked petrol and diesel price by Rs 1.2, which has been slammed by the opposition.