What is hidden in the price of a liter of petrol, does it include GST?
Image source: Reuters
Suppose the price of a liter of petrol in Delhi is Rs 96.72, then it is determined by a combination of factors. Let us proceed to understand its calculation.
Image source: Reuters
First, the base price of a liter of petrol is Rs 57.15 and Rs 0.20 is added as transportation cost.
Image source: Reuters
Now Rs.19.90 has been added as excise duty.
Image source: Reuters
Then an average dealer commission of Rs 3.76 is included.
Image source: PTI
After that Rs 15.71 has been added as Value Added Tax i.e. VAT. However, this may vary as state governments decide as they wish.
Image source: Reuters
Adding all these prices, taxes and fees, the cost of a liter is now set at Rs 96.72 per liter that you buy.
Image source: Reuters
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