Govt has space to cut tax on petrol: Report
Premium- The median price of petrol in all the 106 countries for which data were collected stood at $ 1.22 a litre
NEW DELHI : India is placed 42nd in a group of 106 countries ranked by the retail price of petrol but its comparatively low per-capita income meant there’s a case for lowering taxes on fuel, an analysis by Bank of Baroda showed on Friday.
According to the analysis done by BoB economist Sonal Bandhan, the price per litre of petrol in India in dollar terms works out $1.35, which means retail rates in India are below the prices in over 50 countries.
“This should provide some comfort that in absolute terms India is not an outlier," Bandhan said in the report. The median price of petrol in all the 106 nations for which data was collected was $ 1.22 a litre.
Fuel prices in India are on a par with those in Australia, Turkey, and South Korea. Among comparable countries (per capita income wise), prices are much less in Vietnam, Kenya, Ukr-aine, Bangladesh, Nepal, Pakistan, Sri Lanka and Venezuela. “Therefore there is still a strong case for the government to consider lowering taxes on fuel to protect the interest of the people," the analysis said.