How Much Taxes and Charges You Pay On Petrol, Diesel? Check Full Break-Up Of Fuel Prices

Movement in petrol and diesel prices affect overall prices in the country, affecting households. Although the fuel prices have more or less remained constant since last year, adjustments are usually made in taxes and charges to change their prices. Here’s the total break-up of charges on petrol and diesel in India.

Break-up of Taxes and Charges on Petrol

According to the latest notification from oil marketing companies on November 15, petrol in Delhi is available at Rs 96.72 per litre.

Of this Rs 96.72 per litre, the base petrol price is Rs 57.07. Above this, 20 paise per litre freight charges are levied. These two components (Rs 57.27 in total) are the total price charged to dealers.

An excise duty of Rs 19.90 per litre, a value-added tax (VAT) of Rs 15.71 per litre, and average dealer commission of Rs 3.84 per litre. Together these charges add up to Rs 39.45 per litre.

Petrol’s base price (Rs 57.07 per litre) + freight charges (Rs 0.20) + excise duty (Rs 19.90) + dealer commission (Rs 3.84) + value-added tax (Rs 15.71) = Total petrol price at Rs 96.72 per litre.

Break-up of Taxes and Charges on Diesel

According to the latest notification from oil marketing companies on November 15, diesel in Delhi is available at Rs 89.62 per litre.

Of this, the base price of diesel is Rs 57.87. Above this, 22 paise per litre freight charges are levied. These two components (Rs 58.07 in total) are the total price charged to dealers.

An excise duty of Rs 15.80 per litre, a value-added tax (VAT) of Rs 13.11 per litre, and average dealer commission of Rs 2.64 per litre. Together these charges add up to Rs 31.55 per litre.

Diesel’s base price (Rs 57.85 per litre) + freight charges (Rs 0.22) + excise duty (Rs 15.80) + dealer commission (Rs 2.64) + value-added tax (Rs 13.11) = Total petrol price at Rs 89.62 per litre.

Why Do Prices of Petrol and Diesel Vary Across States and Regions?

The variation in prices of petrol and diesel is on two counts — differences in freight charges and different VAT rates across states.

Freight charges depend upon the distance between the refining plant and the petrol pump; the farther is the petrol pump from the oil refining unit, the more is the freight charge. Because of this, the prices may vary from region to region.

Also, different states levy different VAT rates, due to which prices vary from state to state. For instance, the Delhi government levies 19.40 per cent VAT on petrol and 17 per cent VAT and 0.5 per cent green cess on diesel. The Odisha government levies 28 per cent VAT on petrol. Uttar Pradesh levies 19.36 per cent or Rs 14.85 per litre, whichever is higher.

The fuel rates have remained largely unchanged since May 2022, when the central government and several states had cut fuel taxes.

OMCs change fuel retail prices every day at 6 am in accordance with the price of crude oil throughout the world. Through excise tax, base pricing, and price caps, the government controls fuel prices.

In Mumbai, petrol price on November 15 continued to retail above Rs 100 mark at Rs 106.31 for a litre, while diesel was being sold at Rs 94.27 per litre.