Taxes on petrol and diesel very high in India
We in India pay high taxes and duties on petrol and diesel, higher than some developed countries like the United States and some Europeon countries. We pay approximately 52 per cent tax on petrol (duties, taxes like customs, excise, sales tax, VAT, dealer commission) and 31 per cent on diesel. It doesn’t seem fair does it considering that incomes here are much lower than in developed countries!
The Economic Times has an interesting table which gives a comparison of the major countries of the world.
The table does not reflect prices all over India as the price in Delhi has been taken to represent India, but the state of Delhi has the lowest taxes on petrol and diesel in the whole country! But even if we take Delhi’s price, the total is not a dollar as the dollar has fallen in relation to the rupee…so the price of petrol even in Delhi would be over a dollar even in Delhi.
From Outlook India I got this additional information:[article published March 2008]
Pakistan – 39 percent tax for petrol and 20 percent for diesel
Thailand – 36 percent tax for petrol and 24 per cent for diesel
Petrol and Diesel Prices in rupees
Sri Lanka – Rs 39.38 per litre price in and Rs 24.36 per litre for diesel
Pakistan – Rs 39.01 for petrol and Rs 27.39 for diesel
Bangladesh – Rs 35.80 for petrol and Rs 21.10 for diesel
Nepal – Rs 42.02 for petrol and Rs 33.31 for diesel
Philippines – Rs 32.56 for petrol and Rs 28.92 for diesel
Thailand – Rs 30.57 for petrol and Rs 28.29 for diesel
Canada – Rs 33 for petrol and Rs 36.22 for diesel
USA – Rs 26.34 for petrol and Rs 29.16 for diesel
South Korea – Rs 65.99 for petrol
Japan Rs 48.80 for petrol and Rs 41.47 for diesel.
I found a unique page on the internet set up by someone called Kshitij where he has compiled prices of petrol across cities and also details of prices across the world. These are just a few that I picked to share here:
Petrol prices in rupees per litre
- Hyderbad [April 2008] – Rs 55/-
- Bangalore [May 2007] – 52/-
- Pune [Feb 08] – 51.46
- Mumbai [March 08] – Rs 56
- Kolkata [May 06] – 56.86
- Coimbatore [May 06] – 47.47
- Chennai [Dec 07] – 49.15
- Delhi [Jan 08] – 44.50
[Update:] From Vishesh’s comment I got to know that the price of petrol in Chennai is Rs 55/- per liter today and in his comment Xylene has mentioned that the price in Bangalore today is Rs 58.47!! Xylene has also written about the BJP is protesting the price hike in petrol and diesel in Kerala but not in Karnataka…a case of double standards!
It is said that in India we pay such high taxes on petrol because barely 3 percent of our population pays income tax (agricultural income is free from income tax and others are too poor to pay) and therefore the higher duties and taxes.
However, it doesn’t seem fair that prices are rising again (petrol price by Rs 5/- a liter and diesel by Rs 3/-). The taxes are pinching us badly enough already…and this brings up the unpleasant question…where exactly is our money going?