Petrol Price Without Tax
The actual price of petrol in India before tax is significantly lower than the retail price consumers pay at the pump. This difference is primarily due to the addition of central and state taxes, as well as dealer commissions and other levies.
Here is a simplified breakdown of the petrol price components before tax:
Crude oil costs: Rs.40 per litre
OMC processing costs: Rs.5.66 per litre
Buffer for inflation: Rs.10 per litre
Petrol price before tax: Rs.55.66 per litre
The remaining portion of the retail price is composed of central excise duty, state VAT, and dealer commissions, which vary across different states. These taxes can often make up more than half of the final petrol price paid by consumers.
For daily updates on the latest petrol and diesel prices in Chennai and across India, visit Live Chennai.
Disclaimer: The figures above are indicative and may vary slightly depending on international crude oil rates and operational costs of Oil Marketing Companies.
