Explained Snippets | Centre, state, and dealer: How they split what you pay for fuel

Crude remains an important factor in the recent price hike as Brent crude prices have risen by over 19% from $68 per barrel in end-February to over $80 per barrel now.

Written by Sandeep Singh | New Delhi | Updated: May 24, 2018 9:27:00 am
Petrol price, petrol price today, petrol price hike, diesel price today, Petrol price in new delhi, petro price in mumbai, diesel price in New delhi, statewise petrol price, Narendra Modi, Bharatiya Janata Party, Nitin gadkari, fuel prices, Indian express news Crude remains an important factor in the recent price hike as Brent crude prices have risen by over 19% from per barrel in end-February to over per barrel now. (File Photo)

On Wednesday, the price of petrol hit a high of Rs 77.17 per litre in Delhi, and that of diesel went up to Rs 68.34 per litre. If rising crude oil prices (over $80 per barrel on Wednesday) are an important reason for the hike in domestic fuel prices, so are high taxes levied by the Centre (excise and cess) and states (sales/VAT).

A breakup of the petrol price in Delhi shows that while the price for dealers is Rs 37.65 per litre or 49% of the retail selling price, the excise duty (Rs 19.48 per litre) accounts for more than 25% of the retail price. VAT in Delhi (27%) accounts for another 21%. The final component is the dealer commission at Rs 3.63 per litre. Over the last four years, this has jumped significantly.

 

Crude remains an important factor in the recent price hike as Brent crude prices have risen by over 19% from $68 per barrel in end-February to over $80 per barrel now.

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