Tax on Petrol

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Tax On Petrol

Price before Tax 36.08 /Ltr
Central Tax 17.98 /Ltr
State Tax 14.59 /Ltr
Retail Selling Price 68.65 /Ltr
1 Jan 2019, New Delhi

How will GST effect Petrol Prices?

TAX ON Petrol Petrol PRICE  
90.27% (Current Tax Rate) 68.65 /Ltr

If Petrol is Taxed on Prevailing GST Rates
 NIL 36.08 /Ltr
  5% 37.88 /Ltr
12% 40.41 /Ltr
18% 42.57 /Ltr
28% 46.18 /Ltr

Tax Rate on Petrol in India

The Retail Selling Price of Petrol in Delhi on 1 January 2019 is 68.65 Rs./Litre

For Petrol, the Oil Marketing Companies (OMCs) charged a Price of 32.51 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 3.57 Rs./Litre. Hence if the tax on Petrol was NIL the Petrol would cost 36.08 Rs./Litre.

Central Tax (Excise Duty) levied on Petrol is 17.98 Rs./Litre. State Tax (VAT & Local Levies) levied on Petrol is 14.59 Rs./Litre.

Current Tax Rate levied on Petrol is 90.27%

, i.e. you pay Rs. 32.57 as tax when you buy one Litre of Petrol which Retails at a Price of 68.65 Rs./Litre in New Delhi.

Chart of Tax on Petrol

Source: Indian Oil Corporation

Petrol Price Build Up

Select Month
Elements Unit
Basic Price 32.11 Rs/Ltr
Freight etc 0.40 Rs/Ltr
Price Charged to Dealers 32.51 Rs/Ltr
Excise Duty 17.98 Rs/Ltr
Dealer Commission 3.57 Rs/Ltr
VAT (including VAT on Dealer Commission) 14.59 Rs/Ltr
Retail Selling Price 68.65 Rs/Ltr
Tax on Petrol 90.27 %
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.


External Links

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Petrol Prices

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

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Tax on Diesel

Did you know?

You pay Rs. 24.32 as Tax when you buy one litre of Diesel i.e. Tax on Diesel is 51.7%.

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