Petrol in India Costlier Than in U.S
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Petrol in India Costlier Than in U.S

Tuesday, 29 November 2011, 12:34 Hrs   |    1 Comments
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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
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Reader's comments(1)
1: kya kahoon rpns ji der aye durust aye ya bhagwan ke ghar me der -----------------.Only and easiest solution of current oil and gas imbroglio is energy based pricing of all petro products petrol, lpg , lng , png ,kerosene and diesel. Deregulated and properly taxed prices of a liter of petrol, diesel, kerosene and lpg , png and lng giving mileage of one liter of petrol must be the same Rs 43 today as per mu calculations. Taxation on petro products should be conducive for growth, less during inflation and high crude prices and more when crude is cool. If above policy is implemented oil and gas industry of India will become number one and can help the nation rather than being inflicted by under recoveries. At 200 million ton refining and 30 million ton crude production capacity this industry should be a 10 lac crore plus sales a year today and 20 lac crore after 5 years yielding highest amount of taxes to governments. It is being killed by us by unnecessary mineral water priced cooking fuel supply for votes and resulting in high price for petrol to kill transport sector.
Posted by:alok - 29 Nov, 2011