Look at facts:
International Price of Crude Oil with Ocean Freight (as on 4th September 2018) is 79.93 $ or Rs 5700 per barrrel. One Barrel of Crude Oil contains 1159 litre. Accordingly, cost of Crude Oil per litre comes ti Rs 35.89. Even after adding Basic OMC Cost ( Entry Tax, Refinery Processing,OMC Margin, Cost of fuel comes to Rs 43.03 per litre.
In other words, a litre of crude oil costs oil companies 43.03 per litre and rest is duties which goes to govt's kitty.
Union govt charges Excise Duty + Road Cess of Rs 19.48 / litre on Petrol andRs 15.33 liitre on Diesel. Pricing Charged to dealers before VAT is Rs 58.82 per litre for petrol and Rs 58.36 per litre for diesel.
Adding Rs 3.63 per litre commission on petrol and Rs 2.53, the fuel Cost of petrol before VAT in Delhi comes to Rs 62.45 per litre and diesel Rs 60.89 per litre.
That's not all. Now comes VAT , varying from State to State. Its 27% on petrol and 16.75% on diesel plus 25p litre as Pollution Cess with Surcharge) in Delhi. It comes to Rs 16.86 per litre on petrol and Rs 10.45 per litre on diesel.
As such, final retail price of petrol as on 4th September 2018 is Rs 79.31 per litre and price of diesel is Rs 71.34 per litre in Delhi as against its basic price of 43.03 per litre. Price of crude oil was $ 107.09 per barrel in 2014 and its $ 73 in Sep, 2018. Isn't it a great loot?
What is shocking is Modi govt betraying the people. The BJP-led government has hiked excise duty 11 times since it came to power. It has pocketed Rs 11 lakh crore from the public by raising the duty. Since May 2014, excise duty on petrol has gone up by 211.7 per cent, on diesel by 443.06 per cent.
Govt has assured time and again assured the nation when it was hiking excise duty during low price of crude oil in 2016. Crude oil price fell below $28 a barrel in 2016. Even then govt didn't pass on the benefit of low crude price to consumers. It rather restored to hiking excise duty saying saving was for rainy days. Now Modi govt has backtracked and ruled out the roll back.
From 2017 onward 10% of Ethanol is being mixed with petrol. Ethanol is a natural Fuel (made from Sugar and starch) and carries no PM (Particulate Material) pollution. It can be very well mixed with petrol without any changes.
The catch is that Ethanol is priced at just Rs 40.85 per litre and after mixed in petrol sold at petrol price.
It means that if your car petrol tank is full with 30 litre, actually you get 27 litre petrol and 3 litre Ethanol - but the rate charged is the price of petrol only and you are charged 30 litre of petrol.
There is another danger If water comes in contact with petrol by any chance, it will lead to Ethanol breaking into separate layer against Petrol and this will end up giving Jerks making the car difficult to even start with.