New rates of petrol and diesel released.
Even today, there has been no change in the price of petrol and diesel. However, in the international market, crude oil has crossed the level of $ 120 and has reached the level of $ 124 per barrel.
Petrol and diesel prices again today (Petrol Diesel Price) showed no change. Petrol and diesel prices are stable since May 22. However, the ban on Russian oil from the European Union (EU bans russian oil importDue to the decision to apply, crude oil has reached the level of $ 124 per barrel. This is the highest level in two months. Commodity market experts say that if this trend continues, then in the next two weeks, due to the increase in demand, crude oil will reach the level of $130. After crossing the psychological level of $130, the pressure to increase the price of petrol and diesel will increase.
Petrol is being sold in Delhi today at Rs 96.72 and diesel at Rs 89.62 per liter. Today in Mumbai the price of one liter of petrol is Rs 111.35 and that of diesel is Rs 97.28. In Chennai, the cost of a liter of petrol is Rs 102.63 and that of diesel is Rs 94.24. At the same time, the price of petrol in Kolkata is Rs 106.03 and the price of diesel is Rs 92.76 per liter.
VAT deduction space
Here, according to the SBI Research report, the states still have the space to cut VAT. In such a situation, on an average, the state governments can cut VAT by Rs 2 per liter on petrol and Rs 3 per liter on diesel. Despite this cut, their oil revenue collection will not be affected in any way.
These states have cut VAT
After the reduction in excise duty on petrol and diesel by the central government, states like Maharashtra, Rajasthan, Kerala, Tamil Nadu, Madhya Pradesh, Karnataka, Goa and West Bengal have cut VAT.
How is VAT calculated?
Gaurav Dua, Head of Capital Market Strategy, Sharekhan, said that there are five major components in the price of petrol and diesel. Base price, rent, excise duty, dealer commission and VAT. Value Added Tax (VAT) is calculated on the basis of base price, rent, excise duty and dealer commission. By adding the value of these four, a certain percentage of it is collected by the states in the form of VAT. In such a situation, when the rate of petrol and diesel increases in the international market, the VAT collection of the states increases due to the increase in the base price. If the central government cuts excise duty, then the overall value decreases. Due to this, VAT is also reduced by default.
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