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Indians pay more for petrol than neighbours

business Updated: Nov 29, 2011 18:51 IST
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Petrol in India is costlier than in its neighbouring countries and in the US, primarily because of high taxes.

Petrol in Delhi currently costs Rs 66.42 per litre as against Rs 44.88 a litre price in the US, minister of state for petroleum and natural gas RPN Singh told Rajya Sabha in a written reply to a question.

Even after this month's reduction of Rs 2.22 per litre in rates, petrol at Rs 66.42 a litre in Delhi is costlier than Rs 48.64 a litre in Pakistan.

Whereas in Sri Lanka it is Rs 61.38 per litre, Rs 52.42 a litre in Bangladesh and Rs 65.26 per litre in landlocked Nepal. Incidentally, Nepal does not have a refinery and imports all its requirement from India.

However, petrol in Europe is costlier than in India. In the UK, it is priced at Rs 104.60 per litre.

Prime Minister Manmohan Singh said of the Rs 66.42 per litre price of petrol in Delhi includes Rs 26.59 a litre because of taxes (both central excise and local sales tax or VAT).

The US has only Rs 5.32 per litre tax on petrol while it is Rs 62.47 a litre in UK.

Petrol price in India has risen 39%, or Rs 18.49 per litre, since April 2010.

Petrol in Delhi cost Rs 47.63 per litre in 2010.