Fuel tax increased wildly! This is the reason behind rise in fuel prices in India
- Fuel prices have increased for some time now. The reason is a tax increase. Had the tax on petrol and diesel not increased, they would still be available for Rs 66 and Rs 55 respectively.
- In 2014, OMCs sold petrol to dealers at Rs 49 per litre. After dealer margin and central and state-level taxes, its retail price increased to Rs 74 per litre.
- In this case, OMCs got 66 % of the final price, while 34 per cent went to the dealers, central and state governments.
- Now the share of OMCs has fallen to 42 per cent, while dealer commission and tax has increased to 58 per cent.
- The biggest increase was in central taxes, which have increased from 14 per cent of the retail price in 2014 to 32 per cent now.
