Reason for fuel prices hike in India

At present the price of petrol is going through the phase of Rs.88.12/litre in Mumbai whereas diesel is struggling at Rs.77.32/litre.

It's not only a breakage of economy to middle class but also low wages people's which can bring hault of autmobiles.

Different states suffering from hike as Delhi records the petrol price as Rs.80.73/litre and Diesel as Rs.72.83/litre.

If the prices are differed from different countries a huge difference can be seen at a glance.

For diesel the present Indian government gets almost Rs.11/litre more than the previous government.

The common people are unaware of what happening around or how's the prices are rising.

Let's bring you to the real pricing structure of fuels.

• The structure consists of different sub department which are excise duties, commission to dealers and VAT.

Prices to dealers given                        Petrol            Diesel

(Not including excise and VAT)          35.15.             37.42

Excise                                                      19.48              15.33
(Collected by Centre)

Dealer commission                                3.6.                 2.52

VAT (States collection)                         15.72               9.55

Total selling price                                 73.95             64.82

This data is obtained from the market price as of April 2018.

In the above summary you can see different maximum prices earned by VATs, the commission to dealers, excise duties.e.t.c.

It gives us an appropriate layout of how fuels are brought to us.

So is there any method to cut the fuel prices...
The answer is yes.

Fuel prices cutting techniques.

What if the prices of petrol and diesel is brought under GST. If there is 28 % tax under GST, then also the petrol will cost about Rs.48.59/litre and diesel will be Rs.50.41/litre.

Whoaaa shocked...

• Let's analyse.

Effective tax rates                   Petrol       Diesel

                                                                  (28%)            (28%)

Price to dealers                                                             35                         37

(Not including excise VAT)

CGST                                                                                 5                           5

Dealer commission                                                       4                           3

SGST/UTGST                                                                   5                           5

Total retail price                                                          49                         50

Now you can see the difference of prices if we calculate for petrol will be Rs.-39.12 difference from today's price and diesel Rs.-27.32.

As we have came to know what the today's show was,hope you liked it.

Please give your valuable suggestions,comments and queries.