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Why Petrol is Costlier in India?

If we consider the petrol prices in neighbouring countries we will find that India is selling petrol at highest prices @ Rs 70 per litre. Just have a look at the petrol prices per liters in neighbouring countries:

  • Pakistan – Rs 26
  • Bangladesh – Rs 22
  • Cuba – Rs 19
  • Nepal – Rs 34
  • Burma – Rs 30
  • Afghanistan – Rs 36

Analysis suggests the reason for the high petrol price and factors leading to high cost price are as appended below:

  • Basic cost per litre – Rs 16.50
  • Centre Tax – 11.80%
  • Excise Duty – 9.75%
  • Vat Cess – 4%
  • State Tax – 8%

All above taxes lead to the highest petrol prices in the whole world.

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