New Delhi: The Central government on Saturday (May 22) announced a cut in the excise duty on petrol and diesel. With the latest revision, the price of petrol has been reduced by Rs 9.5 per litre while diesel price comes down by Rs 7 per litre. Finance Minister Nirmala Sitharaman said that the government is reducing the price of petrol by Rs 9.5 per litre and diesel by Rs 7 per litre. “We are reducing the Central excise duty on petrol by Rs 8 per litre and on Diesel by Rs 6 per litre,” she said.
The surprise move that came last night will provide much-needed relief to the common man faced with the ever increasing prices of petrol and diesel amid the rise in the global oil prices.
In the last day 60 days or so, the government had increased petrol and diesel prices on numerous occasions. However, the recent cut on the excise duty will almost nullify the effect of the Central government’s hikes in petrol and diesel prices.
However, with the recent move, it would now be interesting to note how much excise duty and VAT customers will be paying on one litre of petrol and diesel.
Excise Duty, VAT on Petrol
According to the latest price buildup of petrol in Delhi (effective 22-May 2022), the base price of per litre petrol is Rs 57.13. Freight charges stand at Rs 0.20, which takes the price charged to dealers at 57.33 per lire.
Further, excise duty on petrol now stands at Rs 19.90 per litre and the dealer commission is Rs 3.78 per litre. Also, the VAT (including VAT on Dealer Commission) stands at Rs 15.71 per litre.
Excise Duty, VAT on Diesel
The base price per litre of diesel in Delhi is Rs 57.92 while the freight charges are about Rs 0.22. So, the price charged to dealers (excluding Excise Duty and VAT) comes to about Rs 58.14/Ltr.
Excise duty on diesel stands at Rs 15.80 per litre while dealer commission is Rs 2.57. The VAT (including VAT on Dealer Commission) on diesel is Rs 13.1 per litre. Including all the elements, the price of one-litre diesel in Delhi stands at Rs 89.62. Also Read: ‘Petrol price cut by Rs 9, but was increased Rs 10 in 60 days’: Congress
However, consumers must note that VAT on petrol and diesel varies from state to state. Most BJP-ruled and a few non-BJP ruled states recently lowered the VAT on the fuel to provide relief to consumers from the rising inflation. Also Read: After Centre slashes fuel prices, THESE states reduce tax on petrol and diesel – Check rates in your city