The retail price of petrol in Mumbai is Rs 77.50 (as of April 2017). But do you know the cost of petrol supplied by marketing companies including marketing charges is just Rs 29.54. The rest of retail prices comprises of various taxes imposed by central and state governments.
For every litre of petrol we buy, we pay
- Central Excise Duty of Rs 21.48
- Mumbai Octroi of Rs 1.10 and
- State VAT of Rs 22.60
The graph below gives the detailed breakup of Petrol Prices (Times of India, Mumbai Edition on April 25, 2017) and also the prices in neighboring countries.
The petrol rates vary in different states mainly due to variation in State VAT & Octroi.