Effective Saturday midnight, the hike in petrol prices is the steepest so far. The last revision was made in January, when the price was increased by R2.50 per litre.
Andhra Pradesh levies the highest sales tax of 33 per cent on petrol in the country, followed by Tamil Nadu, where it is 30 per cent. Kerala, which levies 29.01 per cent VAT on petrol, has the highest sales tax rate for diesel at 24.69 per cent.Few state also charging cess like Punjab on petrol .In Punjab State levis effective rate on Petrol is around 32%.
Pondicherry has the lowest sales tax or VAT on petrol in the country at 15 per cent, while Haryana and Punjab have the lowest rates for diesel at 8.8 per cent.
What to talk of Central duty like Custom and excise which may ends up around 20-25% .So effectively 50% price of the petrol is Taxes and only 50% is actual price.
Crude Rate is around $120 and dollar rate is 45Rs so crude rate per barrel is Rs 5400/-. Ad other costs are around 30% and rate of petrol will be 7000/- barrel .if barrel=200 lt then avg cost of petrol is 35/- per litre means other 30-35 Rs are taxes .
It means higher crude oil prices are not only responsible for increase in Petrol prices but State and central taxes are also the main reason for increase in prices.
Any increase in fuel prices by oil companies has a cascading effect on retail rates paid by consumers due to the ad valorem nature of the state sales tax.
The government had in June last year freed petrol prices from its control but oil companies continued to follow informal advice from the oil ministry on rate revisions.