Indians pay a whopping 153 % tax on petrol over its basic cost

Among all the other neighbouring countries, the cost of petrol in India is highest.

Consumers are paying around 153 percent in taxes for a litre of petrol over the price at which it is sold by refineries to oil companies, said a report.

Rs 29.54 per litre is the price of petrol at which the oil companies get fuel from refineries. Adding central excise duty, state VAT, octroi, cess and commission for petrol pump owners to it, the consumers in Mumbai end up paying Rs.77.50 per litre.

This accounts for over 153 percent in taxes.

A Times of India report quoted an economist as saying that the government wants to boost its revenues by hiking cess on petrol.

Some say that high price of fuel will also discourage people from using private transport and push them towards availing public transport.

It also needs to be noted that among all the other neighbouring countries, the cost of petrol in India is highest. A report says that in Pakistan, Sri Lanka, Nepal and Bangladesh the fuel costs are Rs 43.68, Rs 50.98, Rs 64.24 and Rs 70.82, respectively.

OneIndia