{"id":89692,"date":"2025-06-01T10:10:38","date_gmt":"2025-06-01T10:10:38","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=89692"},"modified":"2025-06-01T10:10:38","modified_gmt":"2025-06-01T10:10:38","slug":"in-the-current-pricing-policy-the-price-of-diesel-in-india-consists","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/in-the-current-pricing-policy-the-price-of-diesel-in-india-consists\/","title":{"rendered":"In the current pricing policy, the price of diesel in India consists"},"content":{"rendered":"

In the current pricing policy, the price of diesel in India consists of<\/p>\n

[amp_mcq option1=”Fuel component + Customs duty + Excise duty + Sales VAT + Dealer’s commission” option2=”Fuel component + Excise duty + Sales VAT + Dealer’s commission” option3=”Fuel component + Customs duty + Sales VAT + Dealer’s commission” option4=”Fuel component + Customs duty + Excise duty + Dealer’s commission” correct=”option2″]<\/p>\n

\n
\n
This question was previously asked in<\/div>\n
UPSC CAPF – 2013<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
\nThe correct option is B.
\n<\/section>\n
\n– The retail price of diesel (and petrol) in India is a composite of several components.
\n– These components typically include:
\n 1. **Base Fuel Price:** This is the cost of the fuel at the refinery gate, including the cost of crude oil, refining charges, and freight. This is represented by “Fuel component”.
\n 2. **Central Excise Duty:** A tax levied by the central government.
\n 3. **State VAT\/Sales Tax:** A tax levied by the respective state governments, which is usually ad valorem (a percentage of the price).
\n 4. **Dealer’s Commission:** The margin paid to the fuel pump owners.
\n 5. Other minor charges (like pollution cess, etc.) may also be included.
\n– Customs duty is levied on imported goods. While crude oil is imported (and customs duty applies), the refined product (diesel) sold domestically faces Central Excise and State VAT. If refined diesel is imported, customs duty would apply, but Excise and VAT are the standard components levied on domestic sales alongside the base price and dealer commission.
\n– Option B (Fuel component + Excise duty + Sales VAT + Dealer’s commission) represents the standard and most significant components of the retail diesel price in India.
\n– Option A includes Customs duty *along with* Excise and VAT, which is less typical for the main pricing structure of domestically supplied fuel compared to Excise and VAT.
\n<\/section>\n
\nFuel prices in India are now market-linked, meaning they change daily based on international crude oil prices and exchange rates, but the taxes (Excise and VAT) and dealer commission remain fixed per litre or as a percentage unless revised by the government. The tax component (Excise + VAT) often constitutes a significant portion of the final retail price.
\n<\/section>\n","protected":false},"excerpt":{"rendered":"

In the current pricing policy, the price of diesel in India consists of [amp_mcq option1=”Fuel component + Customs duty + Excise duty + Sales VAT + Dealer’s commission” option2=”Fuel component + Excise duty + Sales VAT + Dealer’s commission” option3=”Fuel component + Customs duty + Sales VAT + Dealer’s commission” option4=”Fuel component + Customs duty … <\/p>\n

Detailed SolutionIn the current pricing policy, the price of diesel in India consists<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1085],"tags":[1467,1120,1196],"class_list":["post-89692","post","type-post","status-publish","format-standard","hentry","category-upsc-capf","tag-1467","tag-economic-development","tag-fiscal-policy-revenue","no-featured-image-padding"],"yoast_head":"\nIn the current pricing policy, the price of diesel in India consists<\/title>\n<meta name=\"description\" content=\"The correct option is B. - The retail price of diesel (and petrol) in India is a composite of several components. - These components typically include: 1. **Base Fuel Price:** This is the cost of the fuel at the refinery gate, including the cost of crude oil, refining charges, and freight. This is represented by "Fuel component". 2. **Central Excise Duty:** A tax levied by the central government. 3. **State VAT\/Sales Tax:** A tax levied by the respective state governments, which is usually ad valorem (a percentage of the price). 4. **Dealer's Commission:** The margin paid to the fuel pump owners. 5. Other minor charges (like pollution cess, etc.) may also be included. - Customs duty is levied on imported goods. While crude oil is imported (and customs duty applies), the refined product (diesel) sold domestically faces Central Excise and State VAT. If refined diesel is imported, customs duty would apply, but Excise and VAT are the standard components levied on domestic sales alongside the base price and dealer commission. - Option B (Fuel component + Excise duty + Sales VAT + Dealer's commission) represents the standard and most significant components of the retail diesel price in India. - Option A includes Customs duty *along with* Excise and VAT, which is less typical for the main pricing structure of domestically supplied fuel compared to Excise and VAT.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/in-the-current-pricing-policy-the-price-of-diesel-in-india-consists\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"In the current pricing policy, the price of diesel in India consists\" \/>\n<meta property=\"og:description\" content=\"The correct option is B. - The retail price of diesel (and petrol) in India is a composite of several components. - These components typically include: 1. **Base Fuel Price:** This is the cost of the fuel at the refinery gate, including the cost of crude oil, refining charges, and freight. This is represented by "Fuel component". 2. **Central Excise Duty:** A tax levied by the central government. 3. **State VAT\/Sales Tax:** A tax levied by the respective state governments, which is usually ad valorem (a percentage of the price). 4. **Dealer's Commission:** The margin paid to the fuel pump owners. 5. Other minor charges (like pollution cess, etc.) may also be included. - Customs duty is levied on imported goods. While crude oil is imported (and customs duty applies), the refined product (diesel) sold domestically faces Central Excise and State VAT. If refined diesel is imported, customs duty would apply, but Excise and VAT are the standard components levied on domestic sales alongside the base price and dealer commission. - Option B (Fuel component + Excise duty + Sales VAT + Dealer's commission) represents the standard and most significant components of the retail diesel price in India. - Option A includes Customs duty *along with* Excise and VAT, which is less typical for the main pricing structure of domestically supplied fuel compared to Excise and VAT.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/in-the-current-pricing-policy-the-price-of-diesel-in-india-consists\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T10:10:38+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"In the current pricing policy, the price of diesel in India consists","description":"The correct option is B. - The retail price of diesel (and petrol) in India is a composite of several components. - These components typically include: 1. **Base Fuel Price:** This is the cost of the fuel at the refinery gate, including the cost of crude oil, refining charges, and freight. This is represented by \"Fuel component\". 2. **Central Excise Duty:** A tax levied by the central government. 3. **State VAT\/Sales Tax:** A tax levied by the respective state governments, which is usually ad valorem (a percentage of the price). 4. **Dealer's Commission:** The margin paid to the fuel pump owners. 5. Other minor charges (like pollution cess, etc.) may also be included. - Customs duty is levied on imported goods. While crude oil is imported (and customs duty applies), the refined product (diesel) sold domestically faces Central Excise and State VAT. If refined diesel is imported, customs duty would apply, but Excise and VAT are the standard components levied on domestic sales alongside the base price and dealer commission. - Option B (Fuel component + Excise duty + Sales VAT + Dealer's commission) represents the standard and most significant components of the retail diesel price in India. - Option A includes Customs duty *along with* Excise and VAT, which is less typical for the main pricing structure of domestically supplied fuel compared to Excise and VAT.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/in-the-current-pricing-policy-the-price-of-diesel-in-india-consists\/","og_locale":"en_US","og_type":"article","og_title":"In the current pricing policy, the price of diesel in India consists","og_description":"The correct option is B. - The retail price of diesel (and petrol) in India is a composite of several components. - These components typically include: 1. **Base Fuel Price:** This is the cost of the fuel at the refinery gate, including the cost of crude oil, refining charges, and freight. This is represented by \"Fuel component\". 2. **Central Excise Duty:** A tax levied by the central government. 3. **State VAT\/Sales Tax:** A tax levied by the respective state governments, which is usually ad valorem (a percentage of the price). 4. **Dealer's Commission:** The margin paid to the fuel pump owners. 5. Other minor charges (like pollution cess, etc.) may also be included. - Customs duty is levied on imported goods. While crude oil is imported (and customs duty applies), the refined product (diesel) sold domestically faces Central Excise and State VAT. If refined diesel is imported, customs duty would apply, but Excise and VAT are the standard components levied on domestic sales alongside the base price and dealer commission. - Option B (Fuel component + Excise duty + Sales VAT + Dealer's commission) represents the standard and most significant components of the retail diesel price in India. - Option A includes Customs duty *along with* Excise and VAT, which is less typical for the main pricing structure of domestically supplied fuel compared to Excise and VAT.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/in-the-current-pricing-policy-the-price-of-diesel-in-india-consists\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T10:10:38+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/in-the-current-pricing-policy-the-price-of-diesel-in-india-consists\/","url":"https:\/\/exam.pscnotes.com\/mcq\/in-the-current-pricing-policy-the-price-of-diesel-in-india-consists\/","name":"In the current pricing policy, the price of diesel in India consists","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T10:10:38+00:00","dateModified":"2025-06-01T10:10:38+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"The correct option is B. - The retail price of diesel (and petrol) in India is a composite of several components. - These components typically include: 1. **Base Fuel Price:** This is the cost of the fuel at the refinery gate, including the cost of crude oil, refining charges, and freight. This is represented by \"Fuel component\". 2. **Central Excise Duty:** A tax levied by the central government. 3. **State VAT\/Sales Tax:** A tax levied by the respective state governments, which is usually ad valorem (a percentage of the price). 4. **Dealer's Commission:** The margin paid to the fuel pump owners. 5. Other minor charges (like pollution cess, etc.) may also be included. - Customs duty is levied on imported goods. While crude oil is imported (and customs duty applies), the refined product (diesel) sold domestically faces Central Excise and State VAT. 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