Big Relief for Consumers: Government Slashes Petrol and Diesel Prices!

New Delhi( The Uttam Hindu): The government has announced a reduction in the prices of petrol and diesel, providing relief to consumers. Effective from February 13, petrol prices have decreased by 8 paise, while diesel prices have been reduced by 20 paise. In Bihar, the new prices stand at Rs 106.85 for petrol and Rs 93.60 for diesel. Fuel prices in India are influenced by various factors, including excise duties, dealer commissions, entry taxes, and VAT. Each state government sets its own VAT rate, which leads to price variations across different states.

Here’s a breakdown of petrol and diesel pricing (using an example of Rs 110 per litre for petrol and Rs 90 per litre for diesel):

Petrol Price Breakdown (Example Rs 110 per litre):

Supply Price to Dealer: Rs. 52.80

Excise Duty (Central Government): Rs. 38.50

Dealer Commission: Rs. 16.50

VAT (State Government): Rs. 2.20

Total Retail Price: Rs. 110.00

Diesel Price Breakdown (Example Rs 90 per litre):

Supply Price to Dealer: Rs. 43.20

Excise Duty (Central Government): Rs. 31.50

Dealer Commission: Rs. 13.50

VAT (State Government): Rs. 1.80

Total Retail Price: Rs. 90.00