Petrol in India Costlier Than in U.S

Tuesday, 29 November 2011, 12:34 Hrs   |    1 Comments
Printer Print Email Email


New Delhi:  Petrol in India is costlier than in its neighbouring countries and in the U.S, primarily because of high taxes. Petrol in Delhi today costs 66.42 per litre as against 44.88 a litre price in the U.S, Minister of State for Petroleum and Natural Gas R P N Singh told Rajya Sabha in a written reply to a question.

Even after the November 16 reduction of 2.22 per litre in rates, petrol at 66.42 a litre in Delhi is costlier than 48.64 a litre in Pakistan. Whereas in Sri Lanka it is 61.38 per litre, 52.42 a litre in Bangladesh and 65.26 per litre in landlocked Nepal. Incidentally, Nepal does not have a refinery and imports all its requirement from India. However, petrol in Europe is costlier than in India. In the UK, it is priced at 104.60 per litre.

Singh said of the 66.42 per litre price of petrol in Delhi includes 26.59 a litre because of taxes (both central excise and local sales tax or VAT). The U.S has only 5.32 per litre tax on petrol while it is 62.47 a litre in UK. Petrol price in India has risen 39 percent, or 18.49 per litre, since April 2010. Petrol in Delhi cost 47.63 per litre last year.

The hike in rates in Pakistan is lower at 26 percent, from 38.74 per litre to 48.64 a litre. Sri Lanka has seen a 36 percent increase from 45.23 per litre in April 2010 to 61.38 a litre at present. In Nepal, petrol price went up from 49.98 per litre to 65.26 a litre currently, an increase of 31 percent. Nearly 45 percent of the current retail price of petrol in Delhi is made up of taxes.

The refinery price of petrol is just 36.82 per litre, on top of which 2.25 in inland freight and marketing cost and margin is added. Besides, 14.78 per litre is the excise duty component and 11.07 a litre is the sales tax that Delhi government charges. Another 1.50 is the commission that petrol pump dealers earn.


Source: PTI
SPOTLIGHT
GST rate cut to spur Bengaluru
The realty market in India's tech hub is set to grow as lower Goods and Services Tax (GST) rate..
SpiceJet plans aggressive
Budget passenger carrier SpiceJet plans to aggressively expand its international networks to fl..
Ola raises Rs 400 cr for electric
Leading ride-hailing cab aggregator Ola on Friday said it raised Rs 400 crore from its early in..
Fossil Group sells smartwatch
Global watch and accessories maker Fossil Group has announced to sell its smartphone technolog..