Even though the Centre hiked taxes on petrol and diesel by a record Rs 10 per litre and Rs 13 per litre on Tuesday, petrol prices remain unchanged across all major cities today. The total incidence of the excise duty on petrol and diesel now stands at Rs 32.98 per litre and Rs 31.83 per litre after new taxes. This is the second hike in taxes since coronavirus pandemic hit India in March as the government tries to mop up revenue to cover for losses incurred during the nation-wide lockdown. The retail prices of petrol and diesel, however, will not be impacted by changes in taxes as state-owned oil firms will adjust them against the recent fall in oil prices, industry officials told PTI.
Petrol and diesel prices in metro cities
Latest change in levies
According to a notification issued by the Central Board of Indirect Taxes and Customs, special additional excise duty on petrol has been hiked by Rs 2 per litre and road cess has been hiked by Rs 8 a litre. In case of diesel, special additional excise duty has been hiked by Rs 5 per litre and road cess has been raised by Rs 8 a litre. The government in March had increased duties on petrol and diesel by Rs 3 per litre.
Centre, states earn Rs 49.42/litre on petrol that costs Rs 18/litre
When the Modi government took office in 2014, the total tax on petrol was Rs 9.48 per litre and Rs 3.56 a litre on diesel. The excise duty on petrol has now gone up to Rs 32.98 per litre, while on diesel it is Rs 31.83 per litre, says the Indian Oil's data. Total tax on petrol that costs Rs 71.26/litre in Delhi is Rs 49.42 per litre. Other expenses include dealer commission of Rs 3.56 per litre, 32 paise freight charges and Rs 18 per litre base price. Similarly, both the Centre and the states earn around Rs 48.09 per litre on diesel that costs Rs 69.39 a litre in Delhi. Other expenses include Rs 2.52 per litre dealer commission, freight charges 29 paise, and the base price of Rs 18.49 per litre on diesel.
Global crude prices
US West Texas Intermediate (WTI) crude futures fell 27 cents, or 1.1%, to $24.29 a barrel on Wednesday. Brent crude futures dipped 20 cents, or 0.7%, to $30.77 a barrel, ending a six-day rise. India's entire crude basket represents oil from Oman, Dubai and Brent crude, not WTI that is mostly relevant for the local US, Canada and Mexican markets.
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