The rising oil price – what exactly is the cost of 1 liter petrol?

via HK published on May 17, 2011

The oil price keep rising and the central government always stand with the oil producing companies and tell the public that the companies have no option when the price of crude oil goes up in international market. But the public must know that the invoice price of one litre oil when the oil companies give to their outlet is Rs.36.61 per litre and they add to that Rs.6.00 as special additional excise duty, Rs.6.35 as vat (tax), Rs.2.00 as additional duty and Rs.1.00 for various developments. So in total, the central government takes Rs.15.35 as tax for 1 litre patrol. On top of that the state government levy sales tax which is 29.1% of the base cost which according to the current revised rate comes to Rs.14.87 per litre and this includes 1% cess as well.

So, when the oil companies are charging Rs.36.81 per litre of patrol, the central state governments are extracting from the public Rs.30.07 as various taxes and deductions. It could be clearly deduced from the above given facts that the central and state governments are looting the public in disguise such as rise in crude oil price and the loss being incurred by the oil companies. During the past 4 years, Kerala government got over 8500 crores rupees as tax on petroleum products. The average daily income of the central government from taxes on petroleum products is over 2000 crores. So how could the central and state governments afford to reduce the oil price? Like any other loot going on in this country, oil in fact is a boon to the governments and the public are real idiots!

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