The fuel prices in India have skyrocketed in recent times. After the price of petrol crossed Rs 100 per litre mark, with the non-stop price hikes, now the price of diesel has started to cross the Rs 100 per litre mark. These are the highest prices in the country ever.
The price of diesel has crossed Rs 100 per litre mark in Rajasthan as the Indian oil companies announced the new price hikes on Saturday. Sri Ganganagar, which is a small city in the northern part of Rajasthan has become the first country where motorists will have to pay more than Rs 100 for a litre of diesel.
The city has the highest price of petrol in the country. Due to the taxes, people buying petrol have to Rs 107.23 per litre while the cost of diesel is Rs 100.06 per litre. Premium fuels with additives and higher octane number had already crossed the Rs 100 markets in several cities across the country a few months back.
On Saturday, the oil companies announced a rise of 22 paise for petrol and 32 paise for diesel fuel. At present, there are six states where the price of petrol is above Rs 100. These states and union territories are Rajasthan, Madhya Pradesh, Maharashtra, Andhra Pradesh, Telangana and Ladakh.
In the last few weeks, the oil companies have revised the prices of petrol and diesel daily. This has lead to an extremely high price for the retailers.
Taxes higher than the fuel price
Based on the price data of 16th May from the national capital – Delhi, here is an analysis of the components that makes up the price of petrol and diesel in India. In the petrol prices of Rs 92.58 per litre, the base price is Rs 34.19 per litre. The central government charges 35.35% or Rs 32.90 per litre as ‘Excise Duty.
The state govt in Delhi charges 23 per cent or Rs 21.36, This tax charged by the state government differs and that is why the fuel prices are different across India. The government tax on petrol is Rs 54.26 or about 58.6% of the retail price.
In the case of diesel, which costs Rs 83.22 in Delhi, the central government taxes it at Rs 31.8 per litre or about 38.21% of the retail price. The state government takes Rs 12.19 or 14.64%. The cumulative tax on diesel is Rs 43.99 or 52.85%.
With such high taxes, the overall price of fuel in India remains on the higher side. The Indian government is pushing for alternative fuel in the country and is also trying to promote biofuel, which will reduce India’s dependency on fuel imports. India currently imports more than 82% of its fuel demand from foreign markets. With the use of alternative fuels and electric cars, that figure is likely to come down in the future.