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VAT and LBT hit on petrol in Andhra Pradesh

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New Delhi : Despite the constant fluctuations in the price of crude oil in the international market, India’s oil marketing companies have not made any change in the price of diesel and petrol for a long time. Despite this, there is a big difference in the price of petrol and diesel due to different rates of Local Body Tax (LBT) and VAT in different states of the country. Petrol is currently being sold at the highest price in Andhra Pradesh due to VAT and LBT, while Rajasthan is at number two.

Despite the oil marketing companies not changing the price of petrol and diesel, there is a slight variation in their price in every city of the country. There is a difference in the price of petrol and diesel even in different cities of the same state. The price fixed by the oil marketing companies as well as the Value Added Tax (VAT) and dealer commission levied by the state government are added to the price of petrol or diesel received by the consumer. Along with this, the tax (LBT) imposed by the municipal corporation or municipality in every city is also included in the price of diesel or petrol.

There is also usually a marginal difference in the rate of LBT charged by the Municipal Corporation or Municipality. Along with this, the transportation cost of petrol and diesel varies from city to city. This is the reason that despite having the same VAT rate in the same state, there is a slight difference in the price of petrol and diesel in different cities.

Currently, Andhra Pradesh is the most expensive state in the country in terms of petrol price because of the VAT rate. Petrol is being sold at Rs 111.72 per liter in Andhra Pradesh today. Similarly, in terms of petrol price, Rajasthan is at number two at Rs 109.66 per litre. If we talk about only 4 metros of the country, then petrol is being sold in the capital Delhi at the lowest price i.e. Rs 96.72 per litre. At the same time, the price of petrol in Mumbai is the highest among the four metros today at Rs 106.31 per litre.