[ASK001]

The day we will have unified and common tax (GST) for petrol across the nation with 12% slab is the day i will say we are moving forward as a nation. I believe there was some proposal to bring petrol under gst but it was quickly shot down because state and center both charge whatever they want saying its tax and common people have no clue. I might be wrong here so please correct me if necessary . Also i find it hilarious that every election(central or state) the petrol price drops and then climbs back up once the election is over. If anyone knows the logic of this please let me know as i have never understood the logic of this.

[xway]

Right now the Petrol Crude per barrel is between USD 71 to 74, where retail rates are INR 100.

See the comparision -

Year Barrel Rate Retail India

2014 - USD 98 - 104 INR 61 to 67
2024 - USD 71 - 78 INR 95 to 104

Not to mention the Ethanol mixing of 20%

Sometimes before 2014 the Barrel rate had gone beyond USD 140 shockingly expensive, but still we got retail around 70rs/ltr.

States post GST do not have any taxes to charge as all GST goes to center and later distributed, so tax on petrol is just one lone mechanism for states to collect state specific taxes.

Cost of petrol is hardly 40 rs / ltr and 5-7 rupees of refining charges and 3 rupees as dealer/distribution margin, so all together landed costs around Rs. 50.
Rest all are taxes, surcharges, cess, ethanol, taxes on surcharges and cess, cess on surcharges etc. etc.