Tax on Petrol

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Tax On Petrol

Price before Tax 37.34 /Ltr
Central Tax 19.98 /Ltr
State Tax 15.48 /Ltr
Retail Selling Price 72.80 /Ltr
1 Aug 2019, New Delhi

How will GST effect Petrol Prices?

TAX ON Petrol Petrol PRICE  
94.97% (Current Tax Rate) 72.80 /Ltr

If Petrol is Taxed on Prevailing GST Rates
 NIL 37.34 /Ltr
  5% 39.21 /Ltr
12% 41.82 /Ltr
18% 44.06 /Ltr
28% 47.80 /Ltr

Tax Rate on Petrol in India

The Retail Selling Price of Petrol in Delhi on 1 August 2019 is 72.80 Rs./Litre

For Petrol, the Oil Marketing Companies (OMCs) charged a Price of 33.78 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 3.56 Rs./Litre. Hence if the tax on Petrol was NIL the Petrol would cost 37.34 Rs./Litre.

Central Tax (Excise Duty) levied on Petrol is 19.98 Rs./Litre. State Tax (VAT & Local Levies) levied on Petrol is 15.48 Rs./Litre.

Current Tax Rate levied on Petrol is 94.97%

, i.e. you pay Rs. 35.46 as tax when you buy one Litre of Petrol which Retails at a Price of 72.80 Rs./Litre in New Delhi.

Chart of Tax on Petrol

Source: Indian Oil Corporation

Petrol Price Build Up

Select Month
Elements Unit
Basic Price 33.43 Rs/Ltr
Freight etc 0.35 Rs/Ltr
Price Charged to Dealers 33.78 Rs/Ltr
Excise Duty 19.98 Rs/Ltr
Dealer Commission 3.56 Rs/Ltr
VAT (including VAT on Dealer Commission) 15.48 Rs/Ltr
Retail Selling Price 72.80 Rs/Ltr
Tax on Petrol 94.97 %
Source: Indian Oil Corporation

Historical Petrol 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 Petrol Prices determined in India?

The Current Retail Selling Price of Petrol 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 Petrol. 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 Petrol, Inland Freight, Marketing Cost & Margin, Dealers Commission and Prevailing VAT & Local Levies to arrive at the Retail Selling Price of Petrol.

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Petrol Prices

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


Tax on Diesel

Did you know?

You pay Rs. 25.55 as Tax when you buy one litre of Diesel i.e. Tax on Diesel is 63.2%.