Petrol and Diesel Tax in India: Central and State Tax on Petrol & Diesel in India
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/UT | Petrol Sales Tax/VAT | Diesel Sales Tax/VAT |
Andaman & Nicobar Islands | 1% | 1% |
Andhra Pradesh | 31% VAT + Rs.4/litre VAT+Rs.1/litre Road Development Cess and Vat thereon | 22.25% VAT + Rs.4/litre VAT+Rs.1/litre Road Development Cess and Vat thereon |
Arunachal Pradesh | 14.50% | 7.00% |
Assam | 24.77% or Rs.18.80 per litre whichever is higher | 22.19% 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 |
Bihar | 23.58% 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) |
Chandigarh | Rs.10/KL cess +15.24% or Rs.12.42/Litre whichever is higher | Rs.10/KL cess + 6.66% or Rs.5.07/Litre whichever is higher |
Chhattisgarh | 24% VAT + Rs.1/litre VAT | 23% VAT + Rs.1/litre VAT |
Dadra and Nagar Haveli and Daman and Diu | 12.75% VAT | 13.50% VAT |
Delhi | 19.40% VAT | Rs.250/KL air ambience charges + 16.75% VAT |
Goa | 21.5% VAT + 0.5% Green cess | 17.5% VAT + 0.5% Green cess |
Gujarat | 13.7% VAT+ 4% Cess on Town Rate & VAT | 14.9% VAT + 4% Cess on Town Rate & VAT |
Haryana | 18.20% or Rs.14.50/litre whichever is higher as VAT+5% additional tax on VAT | 16.00% VAT or Rs.11.86/litre whichever is higher as VAT+5% additional tax on VAT |
Himachal Pradesh | 17.5% or Rs 13.50/Litre- whichever is higher | 13.90% or Rs 10.40/Litre- whichever is higher |
Jammu & Kashmir | 24% MST+ Rs.2/Litre employment cess, Rebate of Rs.3.50/Litre | 16% MST+ Rs.1.00/Litre employment cess , Rebate of Rs.4.50/Litre |
Jharkhand | 22% on the sale price or Rs. 17.00 per litre , which ever is higher + Cess of Rs 1.00 per Ltr | 22% on the sale price or Rs. 12.50 per litre , which ever is higher + Cess of Rs 1.00 per Ltr |
Karnataka | 29.84% sales tax | 21.17% sales tax |
Kerala | 30.08% sales tax+ Rs.1/litre additional sales tax + 1% cess , Social security cess Rs.2 per litre | 22.76% sales tax+ Rs.1/litre additional sales tax + 1% cess , Social security cess Rs.2 per litre |
Ladakh | 15% MST+ Rs.5/Litre employment cess, Reduction of Rs.2.5/Litre | 6% MST+ Rs.1/Litre employment cess , Reduction of Rs.0.50/Litre |
Lakshadweep | 10% VAT | 10% VAT |
Madhya Pradesh | 29% VAT + Rs.2.5/litre VAT+1%Cess | 19% VAT+ Rs.1.5/litre VAT+1% Cess |
Maharashtra – Mumbai, Thane & Navi Mumbai | 25% VAT+ Rs.5.12/Litre additional tax | 21% VAT |
Maharashtra (Rest of State) | 25% VAT+ Rs.5.12/Litre additional tax | 21% VAT |
Manipur | 25% VAT | 13.5% VAT |
Meghalaya | 13.5% 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) |
Mizoram | 18%, Social Infrastructure and Services Cess Rs 2000/KL, Road Maintenance Cess Rs 2000/KL | 10%, Social Infrastructure and Services Cess Rs 2000/KL, Road Maintenance Cess Rs 2000/KL |
Nagaland | 21.75% VAT or Rs. 16.94/litre whichever is higher | 17.20% VAT or Rs. 12.83/litre whichever is higher |
Odisha | 28% VAT | 24% VAT |
Puducherry | 16.98% VAT | 11.22% VAT |
Punjab | Rs.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 higher | Rs.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 |
Rajasthan | 29.04% VAT+Rs 1500/KL road development cess | 17.30% VAT+ Rs.1750/KL road development cess |
Sikkim | 20% VAT+ Rs.4000/KL cess | 10% VAT + Rs.3500/KL cess |
Tamil Nadu | 13% + Rs.11.52 per litre | 11% + Rs.9.62 per litre |
Telangana | 35.20% VAT | 27% VAT |
Tripura | 17.50% VAT+ 3% Tripura Road Development Cess | 10.00% VAT+ 3% Tripura Road Development Cess |
Uttar Pradesh | 19.36% or Rs 14.85/Litre whichever is higher | 17.08% or Rs 10.41/Litre whichever is higher |
Uttarakhand | 16.97% or Rs 13.14 Per Ltr whichever is greater | 17.15% or Rs Rs 10.41 Per Ltr whichever is greater |
West Bengal | 25% 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 costs | Rs.40/litre |
| OMC processing costs | Rs.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 costs | Rs.40/litre |
| OMC processing costs | Rs.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.
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