Protesters in Chennai pointed out for every litre of petrol, about 42 per cent (Rs 32.84) of the Rs 77.54 price went towards state and central taxes — VAT, customs duty, central excise and sales.
The base price of petrol, excluding VAT and excise duty, supplied to dealers is about Rs 42.57.
The state government levies 27 per cent sales tax which results in an addition of Rs 16.56. This apart, Rs 1.50 per litre is dealer commission.
Despite the high cost to customers, oil firms complain they are losing heavily. Obviously because their diesel is being heavily subsidised.
Interestingly, the country’s steepest fuel price hike happened on a day India imported crude at its lowest rate in three months, $90 per barrel.