Tax on Diesel

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Tax On Diesel

Price before Tax 47.07 /Ltr
Central Tax 13.83 /Ltr
State Tax 10.49 /Ltr
Retail Selling Price 71.39 /Ltr
19 Nov 2018, New Delhi

How will GST effect Diesel Prices?

TAX ON Diesel Diesel PRICE  
51.67% (Current Tax Rate) 71.39 /Ltr

If Diesel is Taxed on Prevailing GST Rates
 NIL 47.07 /Ltr
  5% 49.42 /Ltr
12% 52.72 /Ltr
18% 55.54 /Ltr
28% 60.25 /Ltr

Chart of Tax on Diesel

Source: Indian Oil Corporation

Tax Rate on Diesel in India

The Retail Selling Price of Diesel in Delhi on 19 November 2018 is 71.39 Rs./Litre

For Diesel, the Oil Marketing Companies (OMCs) charged a Price of 44.52 Rs./Litre from its Dealers. This price includes the Refinery Transfer Price (RTP - Price paid by the OMCs to Refineries), Marketing Cost, Margin, Freight and Other charges. The Commission paid by the OMCs to its Dealers is fixed at 2.55 Rs./Litre. Hence if the tax on Diesel was NIL the Diesel would cost 47.07 Rs./Litre.

Central Tax (Excise Duty) levied on Diesel is 13.83 Rs./Litre. State Tax (VAT & Local Levies) levied on Diesel is 10.49 Rs./Litre.

Current Tax Rate levied on Diesel is 51.67%

, i.e. you pay Rs. 24.32 as tax when you buy one Litre of Diesel which Retails at a Price of 71.39 Rs./Litre in New Delhi.

Diesel Price Build Up

Select Month
Elements Unit
C&F (Cost & Freight) Price $/bbl
Average Exchange Rate Rs/$
Price Charged to Dealers Rs/Ltr
Excise Duty Rs/Ltr
Dealer Commission Rs/Ltr
VAT (including VAT on Dealer Commission) Rs/Ltr
Retail Selling Price Rs/Ltr
Tax on Diesel %
Source: Indian Oil Corporation

Historical Diesel Price Build-Up Trend

Historical Graph

  • Petrol price is a deregulated commodity, price of which is decided by our oil marketing companies based on input cost and other parameters.

  • ~ Veerappa Moily

How are Diesel Prices determined in India?

The Current Retail Selling Price of Diesel is determined by the Oil Marketing Companies (OMCs). The OMCs pay Refinery Gate Price (RPG) based on the Trade Parity Price (TPP) for purchase of Diesel. TPP is calculated on the basis of prevailing oil prices in the International market.

In addition to the Refinery Gate Price, the Oil Marketing Companies also add Excise Duty on Diesel, Inland Freight, Marketing Cost & Margin, Dealers Commission and Prevailing VAT & Local Levies to arrive at the Retail Selling Price of Diesel.

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Diesel Prices

Current & Historical, Trends & Analysis of Petrol Prices of different cities of India.


Tax on Petrol

Did you know?

You pay Rs. 34.25 as Tax when you buy one litre of Petrol i.e. Tax on Petrol is 81.0%.