Why Petrol price is higher than that of Diesel and

kerosene ?

Reasons

• Under Recoveries & Subsidies• Heavy Taxation• Refinery cost

Prices(per liter) in Delhi on 16th Oct 2012

• Petrol[1] – 67.90 Rs.• Diesel[2] – 46.95 Rs• Kerosene[2] – 14.83 Rs

Under Recoveries & Subsidies[2]

• On Petrol -No Under Recoveries & Subsidies -Deregulation in June 2010• On Diesel

-Under Recovery - 9.82 Rs. -No Subsidy• On Kerosene

-Under Recovery – 33.99 Rs. -Subsidy by Central – 0.82 Rs.

Heavy Taxation• VAT (Changes State wise)

- Petrol = 20 % - Diesel = 12.5% - Kerosene = 5.5%

• Excise(Central Govt’s) - Petrol = 25 % - Diesel = 13% - Kerosene = NiLL

• Octroi - Specific cities only

Refinery cost

• Refinery Transfer Price (RTP)- in Delhi on 16/10/20121. Petrol – 41.99 Rs.2. Diesel – 44.55 Rs.3. Kerosene – 46.17

• Though the refining cost of petrol is less, because heavy taxation and Absence of Subsidies the price is more