Petrol Price Today: Tax on Petrol Reduced to 50%. Know How Much You Pay for One Litre

Petrol and diesel prices saw a huge tax cut following a reduction in excise duty by the central government. The total incidence of tax on petrol came down by 50 per cent, while that of diesel reduced to 40 per cent, following the move. The total incidence of tax on petrol and diesel came down by a slightly higher proportion as several states decided to cut Value Added Tax (VAT) or local taxes. On Monday, November 7, petrol and diesel prices however remained unchanged as per a notification by oil marketing companies across India. The price of petrol and diesel has been kept at a halt ever since the Centre imposed the excise duty cut. After the price cut, petrol price has come down under Rs 100-per-litre mark in most parts of the country.

With the tax reduction, petrol price was cut to at Rs 103.97 in the national capital of Delhi and remained unchanged on Monday. On the other hand, one litre of diesel here cost Rs 86.67 on the day. Delhi has not announced any VAT cut.

Petrol price in Mumbai stood at Rs 109.98 per litre on the day. Diesel price in the financial capital was retailing at Rs 94.14 for one litre after the price cut, and was unchanged too.

In West Bengal capital Kolkata, price of one litre of petrol on Monday stood at Rs 104.67. On the other hand, the price of one litre of diesel was fixed at Rs 89.79 in the eastern metropolitan city.

In Chennai, petrol price was at Rs 101.40 for one litre while the price of that amount of diesel stood at Rs 91.43. Petrol price in Bhopal was at Rs 107.23, while diesel price in the Madhya Pradesh city was at Rs 90.87.

On November 1, prior to the duty cuts, central excise of Rs 32.90 a litre and VAT of 30 per cent in Delhi made up for 54 per cent of the retail selling price of diesel, PTI reported quoting a price build-up by state-owned OMCs. This, after the Rs 5 per litre reduction in excise duty, has come down to 50 per cent in Delhi, said PTI in its report.

The recent excise cut in fuel rates were the highest-ever such reduction in history. However, according to the economists, the move only partly reverses the hike in duties in 2020 by Rs 13 per litre for petrol and Rs 16 per litre on diesel, following a steep drop in oil prices, and comes on the heels of higher crude prices pushing retail prices to record highs.

Meanwhile, the global crude oil prices rose on Monday after Saudi Arabia’s state-owned oil producer Aramco raised the official selling price for its crude. This suggested that the global crude oil demand remained strong even at a time when supplies are tight.

Following are the prices of diesel and petrol across some cities in the country: