With the hyper-heavy population and the crazily high number of motor vehicles in India, we can only let you imagine the necessity of the engine fuels like Petrol and diesel. With the importance of these fuels increasing in our day to day lives, the price of the same is rising too. On one side, it is always said that the cost of crude oil is going down at the International market, with that being put, we might wonder why is it the other way around in India. Such is the dynamics at which the cost of petrol and diesel is going up in India.

The first thing you might have to ask is why is this so uneven and never going down in our country? How are the prices of crude oils going up three times a year in India, and how is it benefitting the government, or is it actually benefitting them? Let us break down the details and give you a detailed explanation.

As per the sources, the price of one liter of petrol is Rs 81 in India right now, one must know that almost 50% of the money you give for the petrol goes to the Central and State government, not to the big companies that produce the crude oils. The final ready-to-use petrol is generally about Rs 25.73, which is sold to us at Rs 81.06. Well, it is very well known that the processing charge of turning the crude oil to petrol is only Rs 0.36, then where is the rest of the money going?

The whole rest of the amount you spend is taxes. Without the taxes, it would be a total of just Rs 25.73. The excise duty amount is Rs 32.98, while the dealer commission is precisely Rs 3.60 and the VAT of Rs 18.70 is pressed on the sum. That is the hectic process that turns the pretty Rs 25 to the hasty Rs 81.

A similar story happens in the cost of diesel. Excluding the taxes, the total cost of the diesel is Rs 25.42. The excise duty amount is Rs 31.83, and the processing fee is Rs 0.33. On the other hand, the VAT of Rs 10.36 is levied on the sum. Making the easy Rs 25.42 to Rs 70.46 per liter.