Noida - Greater Noida - Yamuna Expressway

Triple Taxes and Other Reasons behind ever increasing petrol-diesel prices

Citizen Journalist : Amit Gupta

Last updated Sep 14, 2017

Why Petrol rate are at 3 year High?

From last many days discussion are going on on various platforms that Petrol rate are at 3 year High Year but have we tried to find out the exact reason behind it?

Let me explain each point, one by one and then decide who is responsible for it.

I have shared IOCL link for Today’s Petrol price build at Delhi and we can clear see out of that in Rs 70.39, taxes are Rs 36.44 which means that almost 50% tax is being levied on the base price.
NDA government is charging fixed Excise Duty @ Rs.21.48/Ltr and has increased it by Rs 12/L in last 3 years.
Delhi government is charging VAT @27%/L (Rs 14.96/L) and in last two years they have increased it by 7%.
State government like Delhi ,Punjab ,Maharastra ,Karnataka etc have very cleverly kept VAT in % form and has not kept any upper limit on the same (like UP and other state government did ). As a result of the same whenever OMC increases price ,VAT also increases by default and citizens suffer .
Third and fourth points of this column clearly show that OMC are paying Rs 26.65 to Refinery but charging Rs 30.70 to dealers, so they are making a Profit of Rs 4/L and Central government is supporting it. This is a new precedent and earlier this was not the case.
At present the dealer commission has been increased to Rs/Ltr 3.24 .
Very Cleverly state government are charging VAT on the total price which include Excise duty and Dealer commission as a result we are paying triple tax (First Excise duty, then VAT on the same and on Dealer commission ).If state government charges tax on Dealer Price then it will result as VAT OF RS 8.289/L and will reduce Petrol prices by Rs 6.68 as VAT is reduced .

Center Government revenue from Petro products in 2016 was Rs 284,142 Crores .

So it’s not like that only Centre Government is looting us but state government are not behind and giving tough competition to centre and citizens are overall suffering because of this.