Petrol Diesel Price / After all, why is the most expensive petrol in the country in Sriganganagar, Rajasthan? Cost more than Ladakh

Government oil companies in the country change the prices of petrol and diesel every day. According to the price list available on Indian Oil's petrol pump locator, general petrol price in Sriganganagar, Rajasthan is Rs 103.27 per liter on Friday, normal diesel price is Rs 95.70 per liter, extra premium petrol is Rs 106.55 per liter and extra mile diesel The price is Rs 99.37 per liter. This is more than the petrol-diesel price found in Leh-Ladakh, which is considered to be the most inaccessible area of ​​the country. The price of petrol and diesel is still in the range of 90 rupees.

According to the data available till May 10, the price of petrol ready to ship to the petrol pump in the country is Rs 33.76 per liter and diesel costs Rs 35.65 per liter. The price of crude oil is around Rs 31.56 per liter, which varies slightly according to the price of crude oil in the international market and the exchange rate of the rupee. After this, the cost of refining crude oil, margin of refinery, margin of oil company, logistics and freight costs are Rs 2.2 per liter for petrol and Rs 35.65 per liter for diesel. Above this, taxes and dealer's commission of the central and state governments are added.

The central government levies a total of Rs 32.9 per liter on petrol and Rs 31.8 per liter on diesel. Apart from this, the petrol pump dealer's commission is added to the price of petrol at Rs 3.75 per liter for petrol and Rs 2.58 per liter for diesel. After this, the state governments impose VAT and other cess at their own level, due to which the price of petrol and diesel is different in every state.

Every state government levies VAT or other state level tax on petrol and diesel. It is still excluded from GST. The rate of VAT on fuel in Rajasthan is the highest compared to other states. According to the data of Petroleum Planning and Analysis Cell of the Ministry of Petroleum and Natural Gas on 1 May 2021, Rajasthan is charged 36% VAT on petrol and 26% VAT on diesel. Apart from this, the state government also charges road development cess at Rs 1500 per kiloliter on petrol and Rs 1750 per kiloliter on diesel. VAT on petrol exceeds Rajasthan only in Manipur at 36.50% but there is no cess there.

A major reason for petrol and diesel being the most expensive in Sriganganagar in Rajasthan is not the dispatch depot of any petroleum company nearby. Sriganganagar is a remote area bordering Pakistan. According to a report by the Indian Express, Sunit Bagai, president of the Rajasthan Petroleum Dealers Association, says, "Earlier there were oil companies depots in Hanumangarh district, close to Sriganganagar. But to cut costs, companies have now closed them and oil is supplied to Sriganganagar from depots at Jaipur (about 470 km away) or Jodhpur (about 500 km away). For this, a freight charge of up to Rs 4 per liter is charged, hence the most expensive petrol in Ganganagar is available in Rajasthan as compared to other districts.