New Delhi: Oil prices have been steadily rising. After a day’s relief on Wednesday, an increase in oil prices has again increased on Thursday. Today, the price of both petrol and diesel has increased 13-13 paise in the country. After this, where petrol has reached Rs 83 in Delhi, the diesel is at Rs 74.24. Petrol in Mumbai is priced at Rs 90.35 and diesel is 78.82 per liter.
On the basis of global crude oil prices and the position of the rupee against the US dollar, government oil marketing companies revise petrol and diesel prices. IOC, Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) are the three major state-owned oil marketing companies in the country.
Half of the price of petroleum products is taxed at the level of Central and State Governments. According to the companies, the cost of petrol on the refinery is about Rs 40.50 and diesel costs around 43 rupees per liter. The Central Government charges Rs 19.48 and Rs 15.33 per liter respectively on petrol and diesel respectively. State Governments impose Value Added Tax (VAT) on them.
Rates of VAT are different in different states. Taxes are charged at the rate of at least six percent on both the fuels in Andaman and Nicobar Islands. At the highest rate of 39.12 per cent on petrol, and 26 per cent VAT on diesel in Telangana. Rates of VAT on petrol and diesel in Delhi are 27 percent and 17.24 percent respectively.