Different Types of Taxes on Petrol in Kerala

1. Excise Duty (levied by the Central Government).
2. Sales Tax (levied by the State Government).
3. Additional Sales Tax (levied by the State Government).
4. Cess (levied by the State Government).

Factors that Determine Petrol Rates in Kerala

Some of the factors that determine the prices of petrol in Kerala are given below:

1. Sales Tax (Levied by the State): Sales tax is levied by the Kerala government in order to generate revenue. Not only the Kerala government, but all state governments levy sales tax on petrol.
2. Dealer Commission: A commission is paid by OMCs to owners of petrol pumps. The commission that is paid plays a role in determining petrol rates in the state.
3. Dealer Costs: Since petrol is distributed by OMCs, they charge a fee to the dealers. The dealer in turn charges the fee to the consumers. The fee that is charged will impact petrol prices as well.
4. Excise Duty: An excise duty is levied by the Central Government. Consumers are required to pay this fee.
5. Crude Oil Prices: Crude oil prices in the international markets determine petrol rates in Kerala. Some of the factors that affect crude oil rates are international politics and demand and supply.

Example of How Taxes are Levied on Petrol

Let us consider the price for a litre of petrol to be Rs.105.84. Mentioned in the table below are the different taxes that are levied when petrol prices are determined in Kerala: