Wednesday, June 24, 2020

Diesel Price Suva Vs Delhi - Why it's cheaper in the Islands over a mainland?

Reading that diesel in Delhi costs almost as much as petrol. Wow. 

As per Indian Express, "diesel costs Rs. 79.88 per litre in Delhi as compared to petrol price of Rs. 79.76 a litre."

I am living in deep down south Pacific and assuming the oil is coming here from the Middle East (so does India), then how come fuel is cheaper here.

Comparison as per June 2020
Fiji diesel - $1.87 (Rs. 65.27)
India diesel - $2.29 @34.90/$ (FJD)

I guess it's the taxes. Hmm. They say it comes to 70%.

  • The question is the freight cost should be higher Vs Delhi. Then why it's expensive back home?

As per CNN/IBN broadly here is the breakup.

Petrol Price to customer - Rs 71.26

Base price - Rs 18.28

Excise duty (Central) - Rs 32.98

VAT (State) - Rs 16.44

Plus a smallt amount of thefthe price also goes as dealer's margin + freight charges.

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