Why the price of petrol is different in different states of india?

Question

why there is difference in the price of petrol in delhi & karnataka

Answer 1

hi buddy....

Thats because of two important reasons:

1. The tax laws are different in different states. In india the Petroleum and other petroleum products are taxed centrally and state wise. So the level of tax in one state differs form the level of tax in some other state, thats why petrol is cheaper in New delhi than Bangalore.... ok?

2. The second important reason is the transportation cost involved in distributing the petroleum products form the refineries to the various parts of the state and country....

3. Political conditition is also a important reason for this. You see, communists are usually supportive of lower prices for petrol. Political ideplogy plays a very important role too.... It influences the level of taxes and the subsidies that the govt gives which helps in reduction of the petrol prices! Thats why petrol is cheaper in kerala compared to karnataka.... ok?

Answer 2

Basically it is because of difference in rates of VAT in various states.

Answer 3

I think b'coz taxes are different for different states & also transportation charges will be added.

pkn

Answer 4

It depends on if the country produces most of there own oil. Also the government in those places might subsidize the cost of oil, in order to get the economy going. e.i Venezula and Iran pay between .10 and 35 US cents per gallon of gas while Norway and the Netherlands pay over $6.30 USD

Answer 5

It basically because of transportation cost of carrying petrol to perticular place. Places near sea port will have slightly low price than away from port, For that Delhi is far so petrol will be expensive and Karnataka has lot of port like Mangalore so will be cheaper than Delhi.

Answer 6

Due to the local states sales and excise taxes......different states have different tax % that make the prices diff in comparison with other states........like mumbai and delhi have higher tax % in comparison with other states so, petrol prices and other commodities also are sold here @ a higher prices....just because of the government eating the huge tax money because the standard of living in these cities are higher and incomes are also higher.............so, govt. also tries 2 eat a good amount from them by means of several taxes.............these taxes are meant for the welfare of the citizens inthat state but i m sure a good amount is being eaten out by our earth worms (worthless govt. politicians) .....they are dacoits by heart.....