Home Auto News Fuel Inflation Making Holes Into Pocket; Petrol Crosses 100 Rupee Mark

Fuel Inflation Making Holes Into Pocket; Petrol Crosses 100 Rupee Mark

by Shatakshi Gupta

Petrol and diesel prices have increased again on Wednesday. This is the tenth time in the month and the second consecutive day when oil prices have risen. The price of petrol in Ganganagar, Rajasthan has crossed Rs 100 per litre. Diesel has reached beyond 90 rupees. In Ganganagar, normal petrol has been increased to Rs 98.40 per litre and premium petrol to Rs 101.80 per litre.

Petrol has reached 92.86 in Mumbai and 86.30 per litre in Delhi. So far in January, the prices of petrol and diesel have increased 10 times. Today, both diesel and petrol have seen an increase of 25-25 paise. Earlier on Monday, diesel-petrol prices had increased.

Petrol becomes 3 times more expensive after tax

To understand this price hike, it is necessary to first understand how the petrol-diesel reaches pump from crude oil. First crude oil comes from outside. It goes to the refinery, from where petrol and diesel get refined. After this, it goes to the oil companies. Oil companies exact their profits and deliver it to the petrol pumps.

Source: Twitter

The owner of the petrol pump adds his commission after it arrives at the petrol pump. These commissions are decided by the oil companies. After that, the tax which is decided by the Central and State Government is added. At the end after adding profit, commission and tax, petrol and diesel come to us.

 Petrol and diesel prices increased again on Wednesday. This is the tenth time in the month and the second consecutive day when oil prices have risen. The price of petrol in Ganganagar, Rajasthan has crossed Rs 100 per litre. Diesel has reached beyond 90 rupees.

Source: ANI News

 Apart from this, petrol has reached 92.86 in Mumbai and 86.30 per litre in Delhi. So far in January, the prices of petrol and diesel have increased 10 times.  Today, both diesel and petrol have seen an increase of 25-25 paisa. Earlier on Monday, diesel-petrol prices had increased.

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 This month, the price of petrol in Delhi has increased by Rs 2.59 and diesel by Rs 2.61. On 7 December, petrol was sold in Delhi at Rs 83.71 and diesel at Rs 73.87 / litre. After this, their prices did not increase for 29 days. Prices were raised for the first time this month on 6 January.

Petrol becomes 3 times more expensive after tax

 To understand this, it is necessary to first understand how the petrol-diesel reaches pump from crude oil. First crude oil comes from outside. It goes to the refinery, from where petrol and diesel get refined. After this, it goes to the oil companies. Oil companies make their profits and deliver it to the petrol pumps.

The owners of the petrol pump add their commission after it arrives at the petrol pump. These commissions are decided by the oil companies. After that, the tax which is decided by the Central and State Government is added.  After adding all the profit, commission and tax, petrol and diesel come to us.

The government increased excise duty on 6 May

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 The government increased the excise duty by Rs 10 per litre on petrol and Rs 13 per litre on diesel on 6 May 2020 amid the ongoing lockdown. However, the government had said that this hike will not affect the common man’s pocket. Oil marketing companies Indian Oil, BPCL and HPCL will bear the increased duty on petrol-diesel.

Different states charge different taxes

 Apart from levying excise duty by the central government, state governments also earn from you by levying VAT. The VAT tax rate of the states also varies. The Rajasthan government charges the highest VAT in the entire country. Here 38% VAT is levied on petrol and 28% on diesel.

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