Amid the COVID-19 crisis, petrol and diesel price have shot up drastically. Here we will be discussing the rise in petrol and diesel price.
The country is currently in the 4th phase of a nationwide lockdown with few relaxations to curb the spread of the deadly COVID-19 disease.
How have the petrol and diesel price of hiked?
The rise in excise duty – that is taxation levied on the assembly of products – on petrol was to the tune of ₹10 per liter, and ₹13 per liter on diesel. In a very statement late on Tuesday, the govt aforesaid that costs that buyers pay at fuel stations won’t be affected. The rise in excise duty on fuel and diesel comes at a time once a crash in fuel demand globally on account of the coronavirus (COVID-19) pandemic force fossil oil costs to over 20-year lows last month.
After the most recent hike, the excise duty on fuel redoubled to ₹32.98 from the present ₹22.98 per cubic decimeter. Just in case of diesel, the duty was raised to ₹32.83 per liter from ₹18.83 per liter.
Why has petrol and diesel price hike?
Fuel costs vary from state to state within the country supported factors like native taxes and dealer commission. State-run oil selling firms like the Indian Oil Corporation, Hindustan petroleum, and Bharat Petroleum Corporation – own concern ninety percent of the country’s retail fuel retailers.
- The consumer currently has got to parcel out ₹71.26 and ₹69.39 for each liter of fuel and diesel severally in Old Delhi.
- The market value of fuel in Old Delhi on weekday enclosed excise duty of ₹32.98 per cubic decimetre and VAT (including the taxes on dealer commission) of ₹16.44 per liter.
- In the case of diesel, the speed enclosed excise duty of Rs 31.83 and VAT of ₹16.26 on sale of each liter of the fuel within the metropolis.
How has excise duty on petrol & diesel increased?
According to the Central Board of Indirect Taxes and Customs, the special extra excise duty on fuel has been hiked by ₹2 per liter and road cess by ₹8 per liter. Just in case of diesel, the rise is to the tune of ₹5 per liter within the special extra excise duty, and ₹8 per liter in road cess.
Petroleum and diesel costs are presently deregulated within the country and move in bike with world oil rates. However, within the international market, oil costs have born considerably amid the slump in world fossil oil demand.
Oil costs have fallen by 53% since from the beginning of the year until the date and current with the dampened demand prospects of the artifact, oil costs are displayed to stay at the $25-30/bbl level for the present.
How the petrol and diesel price are decided?
Fuel costs vary from state to state within the country supported factors like native taxes and dealer commission. State-run oil selling firms like the Indian Oil Corporation, Hindustan petroleum, and Bharat Petroleum Corporation – own concern ninety percent of the country’s retail fuel retailers.
- The consumer currently has got to parcel out ₹71.26 and ₹69.39 for each liter of fuel and diesel severally in Old Delhi.
- The market value of fuel in Old Delhi on weekday enclosed excise duty of ₹32.98 per cubic decimetre and VAT (including the taxes on dealer commission) of ₹16.44 per liter.
- In the case of diesel, the speed enclosed excise duty of Rs 31.83 and VAT of ₹16.26 on sale of each liter of the fuel within the metropolis.
There are no GST levies on petrol & diesel. However, the manufacturers and suppliers of fuel must have a GST registration if their turnover is above 40 lakhs. Several taxes are levied on petrol such as VAT, excise duty, plus OMC margin, freight expenses, etc.
Know in detail: How the prices of petrol & diesel are decided?
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