The murmurs on rising prices of petrol and diesel reached a crescendo last week when the fuel prices across major cities hit three-year highs. These taxes include Excise Duty (charged by the centre), VAT or Value Added Tax (charged by respective states) and the dealers' commission.For example, let us take the case of Delhi. On September 13, when the uproar on high prices broke out, a dealer in the capital city paid Rs 30.70 for a litre of petrol. On top of this, the centre charged Rs 21.48 per litre as excise duty and the state government charged 27 per cent as VAT which amounted to Rs 14.96. The state of Delhi earns 27 per cent VAT from sale of a litre of petrol.

Source: Times of India September 19, 2017 07:30 UTC