In Delhi, petrol costs ₹101.19 per litre and diesel is priced at ₹88.62 per litre as of now. Central levies make up over 32% of the price of petrol in the national capital, while state taxes (value-added tax or VAT) account for a total of 23%.
If the government permits the inclusion of petrol and diesel under GST, prices for automobile fuels will drop significantly.
According to a Hindustan Times report, this may result in petrol costing ₹75 per litre and diesel costing ₹68 per litre.
At the moment, petrol costs ₹101.19 per litre in Delhi, while diesel costs ₹88.62. Central levies account for more than 32% of petrol’s cost in the national capital, and state taxes (value-added tax or VAT) account for nearly 23%.
According to the Federation of Indian Mineral Producers, diesel has an effective rate of taxation (TER) of 35.69%, while state taxes amount to more than 14%.
The central government increased the excise duty on gasoline in order to shore up its finances as global crude prices plummeted through 2020. States also followed suit, as revenues were hit by the epidemic.
According to official data, the petroleum sector generated ₹3,71,726 crore central excise income in 2020-21 and ₹2,02,937 crore state levies or value-added tax (VAT) in 2021-22.
Can Fuel Prices Go Down in Near Future?
“The central government is also very sensitive to other responsibilities that we have…the government provided free rations to 80 crore people, free vaccines, all other facilities. So it’s a part of that picture,” Union Minister for Petroleum and Natural Gas Hardeep Singh Puri said.
“For example, when the international price was 19 dollar 60 cents or 64 cents per litre, then also we used to impose Rs 32 per litre. Now when it is 75 dollar per litre, we are still imposing the same Rs 32 per litre,” Union Minister for Petroleum and Natural Gas Hardeep Singh Puri said.