Petrol and diesel prices have broken all records. But they are not uniform across the country. The prices vary due to several factors, the most important being the state value-added tax (VAT). States do not levy the VAT at the same rate which leads to a wide variation in prices.
In India, petrol and diesel prices are dependent on a lot of factors. The actual price of petrol and diesel is way less than what we pay for it at the pumps. For every litre of petrol, a buyer also pays excise duty, state VAT, dealer commission and transportation cost apart from the actual price of petrol.
The final price of petrol and diesel at the pump is: price charged by refineries to dealers + Central government tax (customs duty, excise duty) + state tax (VAT) + dealer commission + inland freight charges. Read More
Latest posts by The Economic Times (see all)
- Refiners may reduce oil imports as crude prices soar, Re struggles - September 24, 2018
- CIL aims to supply 17.5 mt coal a year to captive power producers - September 24, 2018
- Railways To Install Latest Signalling System On Mathura-vadodara Route - September 24, 2018