Oil firms sell petrol at Rs 29 litre, government adds another Rs 48 in taxes

Oil firms sell petrol at Rs 29 litre, government adds another Rs 48 in taxes

MUMBAI: Sharon Furtado and her three friends who work with media firms in Parel, car-pool every day from Borivali to their workplaces. Saturday's hike in petrol prices+ will add at least Rs 120 to each one's monthly travel bill. But what has upset Sharon the most is a little-known detail: they are now paying 153 per cent in taxes over the per litre price at which petrol is sold by refineries to oil companies.

Given today's crude price and dollar-rupee exchange rates, the cost of petrol supplied by oil companies inclusive of their marketing charges is Rs 29.54 per litre (see graphic). But in Mumbai, consumers end up paying Rs 77.50 per litre owing to a raft of duties and cess.