Our WhatsApp number cannot be used for calls. This is a chat only number.
The Central Government reduced excise duty on petrol by ₹5 per litre. Following the line, the Administration of Ladakh also lowered VAT on petrol, thereby reducing the petrol price in the Union Territory. This article summarises the petrol tax in Ladakh and additional aspects associated with it. So, if you are curious to know about it, keep reading!
The Administration of Ladakh revised the VAT rate on petrol and reduced it to ₹7.66 per litre.
This reduced excise duty and VAT on petrol had altogether slashed the petrol price in the UT by ₹13.43 per litre.
Take a look at this table mentioned below that highlights essential components such as tax rates charged by the Central and Administration of Ladakh, etc. that make up the petrol price in this Union Territory:
|
Elements |
Effective as of 21st October 2022 (in ₹ per litre) |
|
Price charged to dealers |
₹57.35 per litre |
|
Excise duty (levied by the Central Government) |
₹19.90 per litre |
|
Average dealer commission |
₹8.22 per litre |
|
VAT (levied by the State Government) |
₹14.63 per litre {17.06% of (fuel price charged to dealers + excise duty + avg. dealer commission)} (an additional employment cess of ₹5 per litre and a reduction of ₹2.5 per litre is applicable) |
|
Retail selling price of petrol at Ladakh |
₹100.10 per litre |
The Central Government imposes excise duty (₹19.90 per litre) on petrol, while the Administration of Ladakh levies VAT (approximately ₹14.63 per litre) on petrol. These two tax rates charged by both the authorities determine the petrol price in Ladakh, apart from additional determinants such as the price of crude oil, demand and supply of petrol, and dealers’ commissions.
Factors that affect the petrol tax in Ladakh are as follows:
Demand and supply of crude oil, international political relations, oil reserves and their supplies often change the price of crude oil. Any alteration in its price globally directly affects the petrol price in the domestic market.
With the increasing number of vehicles plying on Indian roads, demand for petrol is also increasing. However, oil refinery companies often fail to meet this higher demand due to a lower supply of petrol. This raises the petrol price in India.
Oil Marketing Companies provide a commission to petrol pump owners, covering their income, expenses and profit. This commission charged by dealers affects the petrol price.
Oil Marketing Companies purchase and distribute crude oil, and depending on refining cost, freight charges, etc., they levy a price to dealers. This price charged to dealers is essential in determining the petrol price in Ladakh.
The Central Government charges excise duty, and each state government and Administration of Union Territories impose VAT on petrol. These tax rates are also vital components that make up the petrol price in Ladakh.
The exchange rate between Indian rupees and American dollars determine the petrol price in the domestic market since crude oil is imported from foreign countries, and the transaction is completed in dollars.
The answer is yes, as the Administration of the UT levies an equal rate of VAT on petrol in Ladakh. However, the tax rate on petrol may vary in Ladakh over the period, impacting its overall price.
Ladakh was one of the places that had witnessed a significant reduction in petrol prices after reducing VAT on petrol in November 2021. However, as stated above, petrol tax in Ladakh may vary over the period, affecting its price. Hence, make sure to remain mindful of the latest updates about it.
Please try one more time!
Disclaimer: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.
Continue with {{bikeCtrl.lastVisitedData.lastVisitedUrl.indexOf('DigitPaymentGateway/payments')
!== -1 ? 'payment completion': 'previous choice'}}
