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Petrol And Diesel Tax In India: Central And State Tax On Petrol & Diesel In India

By Saloni Dhumne

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Updated on: May 8th, 2025

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8 min read

Rising fuel prices are a cause of concern for every Indian citizen whether they already own a vehicle or are planning to buy one. However, have you wondered why fuel prices tend to differ across states?

Well, it is due to the taxes levied by the Central and State Governments on the retail prices of petrol and diesel. So, if you wish to know the applicable diesel and petrol tax in India across the different states, keep reading.   

Petrol And Diesel Tax In India

Petrol tax in India consists of 55% of petrol's retailing price while diesel tax is 50% of the fuel's retail value. Apart from this, sales tax and Value Added Tax (VAT) are levied at varying rates by the State Governments. 

Here are the major charges present in India’s fuel pricing structure:

  • Base price of crude oil 
  • Excise duty
  • Dealer’s commission and charges
  • Value Added Tax (VAT)  

Now, crude oil prices, dealer’s charges and excise duty remain the same all over India. However, VAT and sales tax tend to differ across states, leading to a variation in fuel prices. 

Central And State Tax On Petrol And Diesel In India

Both the central and state governments of India levy taxes on petrol and diesel. The central authorities have raised the excise duty on petrol and diesel to Rs 13/litre and Rs 10/litre, respectively, effective April 8, 2025. 

On top of this, the state governments levy VAT, sales tax and other additional charges. The rates of these taxes tend to vary, leading to a difference in petrol and diesel prices across India.  

State Wise Tax On Petrol And Diesel In India

Check out the diesel and petrol tax in India across the different states:

State/UTPetrol Sales Tax/VATDiesel Sales Tax/VAT
Andaman & Nicobar Islands1%1%
Andhra Pradesh31% VAT + Rs.4/litre VAT+Rs.1/litre Road Development Cess and Vat thereon22.25% VAT + Rs.4/litre VAT+Rs.1/litre Road Development Cess and Vat thereon
Arunachal Pradesh14.50%7.00%
Assam24.77% or Rs.18.80 per litre whichever is higher22.19% OR Rs. 14.60 per litre whichever is higher
Rebate of Rs. 1.50 per litre subject to minimum tax of Rs. 14.60 per litre
Bihar23.58% or Rs 16.65/Litre whichever is higher (30% Surcharge on VAT as irrecoverable tax)16.37% or Rs 12.33/Litre whichever is higher (30% Surcharge on VAT as irrecoverable tax)
ChandigarhRs.10/KL cess +15.24% or Rs.12.42/Litre whichever is higherRs.10/KL cess + 6.66% or Rs.5.07/Litre whichever is higher
Chhattisgarh24% VAT + Rs.1/litre VAT23% VAT + Rs.1/litre VAT
Dadra and Nagar Haveli and Daman and Diu12.75% VAT13.50% VAT
Delhi19.40% VATRs.250/KL air ambience charges + 16.75% VAT
Goa21.5% VAT + 0.5% Green cess17.5% VAT + 0.5% Green cess
Gujarat13.7% VAT+ 4% Cess on Town Rate & VAT14.9% VAT + 4% Cess on Town Rate & VAT
Haryana18.20% or Rs.14.50/litre whichever is higher as VAT+5% additional tax on VAT16.00% VAT or Rs.11.86/litre whichever is higher as VAT+5% additional tax on VAT
Himachal Pradesh17.5% or Rs 13.50/Litre- whichever is higher13.90% or Rs 10.40/Litre- whichever is higher
Jammu & Kashmir24% MST+ Rs.2/Litre employment cess, Rebate of Rs.3.50/Litre16% MST+ Rs.1.00/Litre employment cess , Rebate of Rs.4.50/Litre
Jharkhand22% on the sale price or Rs. 17.00 per litre , which ever is higher + Cess of Rs 1.00 per Ltr22% on the sale price or Rs. 12.50 per litre , which ever is higher + Cess of Rs 1.00 per Ltr
Karnataka29.84% sales tax21.17% sales tax
Kerala30.08% sales tax+ Rs.1/litre additional sales tax + 1% cess , Social security cess Rs.2 per litre22.76% sales tax+ Rs.1/litre additional sales tax + 1% cess , Social security cess Rs.2 per litre
Ladakh15% MST+ Rs.5/Litre employment cess, Reduction of Rs.2.5/Litre6% MST+ Rs.1/Litre employment cess , Reduction of Rs.0.50/Litre
Lakshadweep10% VAT10% VAT
Madhya Pradesh29% VAT + Rs.2.5/litre VAT+1%Cess19% VAT+ Rs.1.5/litre VAT+1% Cess
Maharashtra – Mumbai, Thane & Navi Mumbai25% VAT+ Rs.5.12/Litre additional tax21% VAT
Maharashtra (Rest of State)25% VAT+ Rs.5.12/Litre additional tax 21% VAT
Manipur25% VAT13.5% VAT
Meghalaya13.5% or Rs 13.50/Litre- whichever is higher (Rs.0.10/Litre pollution surcharge) 5% or Rs 9.50/Litre- whichever is higher (Rs.0.10/Litre pollution surcharge) 
Mizoram18%, Social Infrastructure and Services Cess Rs 2000/KL, Road Maintenance Cess Rs 2000/KL10%, Social Infrastructure and Services Cess Rs 2000/KL, Road Maintenance Cess Rs 2000/KL
Nagaland21.75% VAT or Rs. 16.94/litre whichever is higher17.20% VAT or Rs. 12.83/litre whichever is higher 
Odisha28% VAT24% VAT
Puducherry16.98% VAT11.22% VAT
PunjabRs.2050/KL (cess)+ Rs.0.10 per Litre (Urban Transport Fund) + 0.25 per Litre (Special Infrastructure Development Fee)+16.58% VAT plus 10% additional tax  or Rs.14.93/Litre whichever is higherRs.1050/KL (cess) + Rs.0.10 per Litre (Urban Transport Fund) +0.25 per Litre (Special Infrastructure Development Fee) + 13.1% VAT plus 10% additional tax  and  or Rs.10.94/Litre whichever is higher
Rajasthan29.04% VAT+Rs 1500/KL road development cess17.30% VAT+ Rs.1750/KL road development cess
Sikkim20% VAT+ Rs.4000/KL cess 10% VAT + Rs.3500/KL cess 
Tamil Nadu13% + Rs.11.52 per litre11%  + Rs.9.62 per litre
Telangana35.20% VAT27% VAT
Tripura17.50% VAT+ 3% Tripura Road Development Cess10.00% VAT+ 3% Tripura Road Development Cess
Uttar Pradesh19.36% or Rs 14.85/Litre whichever is higher17.08% or Rs 10.41/Litre whichever is higher
Uttarakhand16.97% or Rs 13.14 Per Ltr whichever is greater17.15% or Rs Rs 10.41 Per Ltr whichever is greater
West Bengal25% or Rs.13.12/litre whichever is higher as sales tax+ Rs.1000/KL cess(20% Additional tax on VAT as irrecoverable tax)17% or Rs.7.70/litre whichever is higher as sales tax + Rs 1000/KL cess (20% Additional tax on VAT as irrecoverable tax)

Petrol And Diesel Tax Breakup

To understand the breakup of diesel and petrol tax in India, let’s take the example of fuel prices in Delhi.

Tax breakup of petrol prices in Delhi:

Price Elements 

Price (per litre as of 10th April 2025)

Price chargeable to dealers Rs.55.66 
Average dealer commission Rs.3.77
Excise duty (charged by Central Government)Rs.19.90
VAT (applied by State Government) Rs.15.39/litre {consisting of 19.4% of (price chargeable to dealers + Average dealer commission + excise duty)}
Retail selling price of petrol in Delhi Rs.94.72

Tax breakup of diesel prices in Delhi:

Price Elements 

Price (per litre as of 10th April 2025)

Price chargeable to dealers Rs.56.42
Average dealer commission Rs.2.58
Excise duty (charged by Central Government)Rs.15.80
VAT (applied by State Government) Rs.12.82/litre {16.75% of (price chargeable to dealers + Average dealer commission + excise duty)}
Retail selling price of diesel in Delhi Rs.87.62

Petrol Price Without Tax

Here is the actual price of petrol before applying the central and state tax on petrol in India:

Price Elements

Price

Crude oil costsRs.40/litre
OMC processing costsRs.5.66/litre
Buffer for inflation Rs.10/litre
Petrol price before tax Rs.55.66/litre

Diesel Price Without Tax

Take a look at the table below to know the price of diesel without tax:

Price Elements

Price

Crude oil costsRs.40/litre
OMC processing costsRs.6.42/litre
Buffer for inflation Rs.10/litre
Diesel price before tax Rs.56.42/litre

Diesel and petrol tax in India is levied by the government in order to collect lump-sum revenue from the public. These funds are mainly used for developmental activities and contribute to the nation’s progress. 

Additionally, being a responsible consumer, it is your duty to know these rates. Remember, petrol pumps are not allowed to overcharge you on the state’s applicable petrol prices. Thus, knowing these rates is important for you to ensure that you are justly charged when buying fuel.  

Related Article:
1. Petrol Price In India: Yearly History From 2004 To 2025

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Frequently Asked Questions

How much percent tax on petrol in India?

As of now, there is a 55% tax on the overall selling price of petrol in India. 

How much central tax on petrol in India?

The central government levies an excise duty worth Rs.19.90/litre on petrol. 

Which state has the highest tax on petrol in India?

Andhra Pradesh charges the highest tax on petrol in India which is 31% VAT + Rs.4/litre VAT + Rs.1/litre Road Development Cess and VAT thereafter. 

How much tax on petrol in Maharashtra?

For regions like Mumbai, Navi Mumbai, Thane and Aurangabad, the applicable petrol tax is 26% VAT+ Rs.5.12/litre additional tax. While for the rest of Maharashtra, the petrol tax is 25% VAT+ Rs.5.12/litre additional tax. 

What is the tax on diesel in India?

The central government charges tax on diesel at Rs.15.80/litre. Additionally, VAT and sales tax are levied by the state governments, the applicable rates of which tend to vary. 

Is there GST on petrol and diesel?

Petrol and diesel do not come under Goods and Services Tax (GST). They are applicable for Central Excise Duty, Central Sales Tax and Value Added Tax (VAT).   

What is the dealer commision for petrol and diesel?

3.9% for petrol and 2.9% for diesel is the commision percentage for dealer on petrol and diesel.

Does petrol and diesel come under the purview of GST?

Petrol and diesel does not come under the purview of GST.

About the Author

A former journalist by profession, I live by the power of the written word. Specializing in personal finance, I simplify wealth planning for individuals looking to grow their money effectively. Beyond my work, I eagerly seize any opportunity to travel, exploring offbeat destinations and embracing new experiences.. Read more

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