rising fuel taxes
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Rising fuel taxes add to motorists’ burden

ByJustpaste.in

Consumers are facing a growing burden of taxes and other charges on petrol and high-speed diesel.

Official documents show that the difference between the basic cost and retail price of petrol is Rs139.93 per litre. For high-speed diesel, the difference stands at Rs116.10 per litre.

The documents show that the basic cost of one litre of petrol is Rs197.69. However, consumers are currently paying Rs327.62 per litre.

Several taxes, levies and margins are included in the retail price. These charges significantly increase the amount paid by consumers at fuel stations.

Petrol carries a petroleum levy of Rs80 per litre. A climate support levy of Rs5 is also imposed.

The price also includes Rs21.24 in customs duty. An Inland Freight Equalisation Margin of Rs7.48 is charged per litre.

Oil marketing companies receive a margin of Rs7.87 per litre. Dealers are paid a margin of Rs8.64 per litre.

As a result, consumers pay Rs130.23 per litre in combined levies, taxes and margins on petrol.

The situation is similar for high-speed diesel. Its basic cost is Rs264.76 per litre. However, its retail price has been fixed at Rs380.86 per litre.

According to the documents, consumers pay around Rs116 per litre in levies, taxes and different margins on high-speed diesel.

The petroleum levy on high-speed diesel is Rs74.28 per litre. The fuel also carries a climate support levy of Rs5 per litre.

Customs duty accounts for another Rs15.68 per litre. The Inland Freight Equalisation Margin stands at Rs4.63.

Oil marketing companies receive a margin of Rs7.87 per litre. Dealers receive Rs8.64 per litre as their margin.

The figures show that taxes, levies and various margins form a significant portion of the final prices of both fuels.

The additional charges directly affect motorists and consumers. They also increase transportation and operating costs for businesses that depend heavily on fuel.

The rising cost of petrol and diesel can also put pressure on the prices of goods and services. Transport operators, traders and other businesses often pass higher fuel costs on to consumers.

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