FULL BREAKUP OF RETAIL PRICES OF PETROL AND DIESEL IN INDIA AS OF 1st OCTOBER 2013

Price of Petrol Charged by OMCs to Petrol Pump owners excluding all Taxes-Rs 50.85/Litre Central Government Tax on Petrol- Rs 9.48/Litre Most Expensive Petrol in India-Maharashtra/Punjab/Karnataka/West Bengal/Andhra Pradesh/Uttar Pradesh-Rs 79.50/Litre Tax on Petrol In Maharashtra/Punjab/Karnataka/West Bengal/Andhra Pradesh/Uttar PradeshRs 19.17/Litre Cheapest Petrol in India- Goa-Rs 60.00/Litre Tax on Petrol in Goa-Rs 0/Litre

Price of Diesel Charged by OMCs to Petrol Pump Owners excluding all Taxes-Rs 41.87/Litre Central Government Tax on Diesel-Rs 4.56/Litre Desired Price of Diesel by OMCs - Rs 52.40/Litre Diesel Under-recovery for OMCs today-Rs 10.52/Litre Cheapest Diesel in India- Punjab/Haryana-Rs 51.10/Litre Tax on Diesel in Punjab/Haryana-Rs 4.67/Litre Most Expensive Diesel in India-Maharashtra-Rs 59.5/Litre Tax on Diesel In Maharashtra-Rs 13.1/Litre

HOW TO CALCULATE HOW MANY RUPEES YOUR STATE CHARGES IN TAX ON PETROL AND DIESEL TODAY?
Tax on Petrol=Retail Price of Ordinary Petrol MINUS Rs 60 Tax on Diesel=Retail Price of Ordinary Diesel MINUS Rs 46.43

Taxes on Petrol and Diesel in Other Notable States

Tax on Petrol in Tamil Nadu-Rs 15.35/Litre Tax on Petrol in Delhi-Rs 12.1/Litre Tax on Diesel in Tamil Nadu-Rs 9.6/Litre Tax on Diesel in Delhi-Rs 6.11/Litre Tax on Diesel in West Bengal-Rs 10.5/Litre Tax on Diesel in Andhra Pradesh-Rs 10.84/Litre Tax on Diesel in Karnataka-Rs 10.60/Litre

Couple of Quick Notes on this Data1) All Data is Sourced Directly From the Website of OMC-Indian Oil Corporation. www.iocl.com 2) In the Retail Price Charged by OMCs to Petrol Pump Owners, I have also Included Their Commission Charges (Rs 1.79/Litre for Petrol and Rs 1.09/Litre for Diesel respectively). 3) On a Net-Net Basis, On Every Litre of Diesel Sold by the OMCs today the Central Government is LOSING SIX RUPEES Today (I am assuming that the OMCs are Arms of the Central Government which works here because ultimately its the Central Government which has to compensate the OMCs for these Losses). These Losses are Massive (The OMCs sell about 78 Billion Liters of Diesel every Year!!!) and cant be borne by The State. So those Prices have to rise. A More Detailed Explanation on why Those Losses have to be Removed Immediately is Given HERE http://www.scribd.com/doc/142065243/Kirit-Parikh-Report-on-the-Massive-Benefits-to-the-IndianEconomy-by-Total-Removal-of-Diesel-Subsidies-published-in-October-2012

http://www.scribd.com/doc/175283783/Diesel-Price-Reform-NIPFP-Aug2012 http://www.scribd.com/doc/175756758/Arguments-for-and-Against-Removal-of-Diesel-Subsidies-inIndia

4)From this Breakup it is also Extremely Clear that Consumers in only Three States are Really getting Subsidized Diesel in India currently(Less than Rs 52.4/Litre)-Punjab, Haryana, Andaman & Nicobar. Diesel Consumers in All Other States are actually paying more than Market-Prices for Diesel today. 5) It never ceases to amaze me (and Most People I share this Data with), How Heavy a Tax Burden various State Governments Levy on Petrol and Diesel Sold there. In those States With the Highest Tax Burden, Like Maharastra, The State Government Tax (as a % of Total Retail Price that the Consumer Pays at the Pump) is 24.1% and 22% for Petrol and Diesel respectively. Even in States which claim to be Pro-Poor or Pro-Farmer the Tax Burdens on Petrol and Diesel are extremely high. For Instance in Tamil Nadu, the State-Level Tax Burden is 24.1% and 17.1% on Petrol and Diesel Respectively. In UP, the State-Level Tax Burden is 24.1% and 18.6% on Petrol and Diesel Respectively. In Bihar, the State-Level Tax Burden is 21.4% and 16.85% on Petrol and Diesel Respectively. In West Bengal, the State-Level Tax Burden is 24.1% and 18.45% on Petrol and Diesel Respectively.

So the Next Time, You hear any State-Level Politician Moaning about the Price of Diesel or Petrol Rising in India primarily because of the Weakening Rupee, As an Honest Taxpayer You SHOULD ASK Them why are Taxes on both these Products so High in your State? Why cant you REDUCE State-Level tax Burdens to make things atleast a Bit Better for the CommonMan? After all, this isnt something New, Revolutionary or never before attempted in India. Chhattisgarh (2008), Punjab (2011) and Goa(2012) all have in the very recent Past reduced Taxes on Petrol, Diesel and even on LPG.

At the sametime, just because a State Reduces Taxes on Petrol and/or Diesel doesnt mean that it will Always Lose Revenue. I have seen Firsthand the Experience of Goa and Punjab in this Respect. Consumers of Petrol and Diesel in Karnataka and Maharashtra Which Border Goa; All tend to Fill their Tanks in Goa because Prices are so much Lower there. Consequently Goas Tax Revenue has Actually GONE UP. Similarly, You see a lot of Bus and Truck Drivers from Himachal Pradesh,J&K and even Delhi fill their Tanks in Punjab and Haryana because Prices are much Lower there. This is the Laffer Curve in Action! At the same time, this also Forces Notoriously Inefficient Governments to Learn to do more with less and Stretch Available Resources in the Best possible Fashion. Data Recently Published by TOI clearly validates the Extent of Waste and Inefficiency in most Government Departments Nationally. http://articles.timesofindia.indiatimes.com/2013-09-05/delhi/41800766_1_200-litres-300-litres-quota

YOU CAN FIND THE ORIGINAL ARTICLE & UPDATED VERSIONS AS RETAIL PRICES OF PETROL & DIESEL CHANGE HERE http://www.scribd.com/doc/175159894/Central-and-State-Taxes-on-Petrol-and-Diesel-in-India-1stOctober-2013