Petrol Price in Haryana

Haryana is one of the states located in North India and the state is ranked 21st in terms of scope of the surface. The state was carved out of the previously East Punjab state during 1966 based on language. It has the sixth highest per capita income in the country and it touched Rs 180,174 against the national average of Rs 112,432 for fiscal 2016-2017. The state has achieved phenomenal growth with respect to national agricultural exports at 7%, national export of Basmati rice at 60%. With the growing population and development, the state consumes more fuel to achieve its key milestones.

What is the method followed to calculate Petrol Prices in Haryana?

The cost of petrol per litre in Haryana is based on many factors and it includes global crude oil prices, refinery charges, central excise duty, state-level value-added tax, dealer’s commission.

As of now the crude oil prices are in the range of $70-$75 per barrel in the global market and the cost of oil marketing companies in the country comes up to Rs 9.34 per litre and the same is added to the cost oil per litre. The central excise duty imposed by the central government and the state-based value-added tax in the state of Haryana stands at 26.25%, this will be charged to the petrol retailers.

Impact of Goods & Services Tax on Petrol in Haryana

The Goods & Services Tax has redefined the tax structure in the country, especially on products and services. The central government introduced it starting from July 2017. Post introduction of GST, the demand for trucks has come down steeply as new stocks cannot be moved in the similar value as it was done prior to the introduction of GST.

Under GST, the goods transport agencies are excluded, but the retailers of these services have to deposit a fixed tax of 5%. There would be a downfall on the compliance cost by a staggering rate of 200% alone in the state of Haryana and the cost of petrol would be around Rs 43.10 per litre if in case of GST is levied on the petrol prices at 28%.