Government the biggest gainer from petrol price hikes

It’s cheaper to tank up cars in Washington, New York, Karachi, Dhaka, Beijing and Colombo, among many other cities, than in Delhi — and for a very good reason. About 40% of what you pay for petrol goes to the government as taxes and duties. Although the Centre does not put out numbers, conservative estimates suggest that half the excise duty collection in the country is from petroleum products. In 2011-12, therefore, the Centre expects to earn about Rs 82,000 crore as excise duty from petroleum products.

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