Tax on petrol and diesel in India state wise

Fuel prices in India are a frequent subject of debate. Petrol and diesel prices vary from one state to another because of different local taxes. Each state government adds its own VAT, cess and surcharges, which change final fuel cost. These taxes determine how much consumers pay at petrol pumps. In this blog, we will discuss state wise tax on petrol and diesel in India.

Tax percentage of Tax on petrol and diesel in India state wise

Petrol and diesel prices in India are revised daily by public sector Oil Marketing Companies (OMCs) based on changes in global crude oil prices. Retail price includes base price set by OMCs and freight charges paid to dealers. Currently, dealer’s share is about 42% of the petrol price and 49% of the diesel price.

1. Effective tax rate on petrol and diesel is calculated using taxes like sales tax, VAT, cess, additional tax, and surcharge. These taxes are added to the retail price, excluding Central levies and CST.
2. In addition to foregoing taxes, state governments of Bihar and West Bengal levy an additional tax/surcharge on VAT of 30 percent and 20 percent, respectively, which is non-recoverable.
3. Effective tax rate was calculated using percent of total taxes applied to retail selling prices excluding these total taxes.
4. In Arunachal Pradesh, Delhi, Gujarat, Haryana, Madhya Pradesh, Punjab, Chandigarh, Puducherry, Andaman & Nicobar, Meghalaya, Dadar Nagar Haveli, and Daman & Diu, VAT/Sales Tax is levied on Dealer’s commission at relevant rates.

Central government reduced excise duty on petrol by ₹5 and diesel by ₹10 per litre. After reduction, 22 states lowered VAT on petrol and diesel, 14 states did not.

Karnataka has seen the largest reductions in petrol prices, followed by Puducherry and Mizoram. Petrol prices have decreased by Rs 13.35, Rs 12.85, and Rs 12.62 in these states, respectively.

State wise tax on petrol in India

State	Sale Tax/VAT on Petrol
Andaman & Nicobar Islands	6%
Andhra Pradesh	31% VAT + Rs 4/litre VAT+Rs 1/litre Road Development Cess and VAT
Arunachal Pradesh	20%
Assam	32.66% or Rs 22.63/litre, whichever is higher
Bihar	26% or Rs 16.65/litre whichever is higher (30% Surcharge on VAT which cannot be recovered)
Chandigarh	Rs.10/KL cess + 22.45% or Rs 12.58/litre whichever is higher
Chhattisgarh	25% VAT + Rs 2/litre VAT

State wise tax on petrol in India

Dadra and Nagar Haveli and Daman and Diu	20%
Delhi	30% VAT
Goa	27% VAT + 0.5% Green cess
Gujrat	20.1% VAT+ 4% Cess on Town Rate & VAT
Haryana	25% or Rs 15.62/litre whichever is higher as VAT+5% additional tax on VAT
Himachal Pradesh	25% or Rs 15.50/litre- whichever is higher
Jammu Kashmir	24% MST+ Rs 5/litre employment cess, Reduction of Rs 0.50/litre
Jharkhand	22% on the sale price or Rs 17 per litre, whichever is higher + Cess of Rs 1.00 per Litre

State wise tax on petrol in India

Karnataka	35% Sales Tax
Kerala	30.08% sales tax+ Rs 1/litre additional sales tax + 1% cess
Ladakh	24% MST+ Rs 5/litre employment cess, Reduction of Rs 2.5/litre
Lakshadweep	NIL
Madhya Pradesh	33 % VAT + Rs 4.5/litre VAT+1%Cess
Maharashtra – Mumbai, Thane & Navi Mumbai	26% VAT+ Rs 10.12/litre additional tax
Maharashtra (Rest of State)	25% VAT+ Rs 10.12/litre additional tax
Manipur	36.50% VAT

State wise tax on petrol in India

Meghalaya	20% or Rs 15.00/litre- whichever is higher (Rs 0.10/litre pollution surcharge)
Mizoram	25% VAT
Nagaland	25% VAT or Rs.16.04/litre whichever is higher +5% surcharge + Rs 2.00/litre as the road maintenance cess
Odisha	32% VAT
Puducherry	26% VAT
Punjab	Rs 2,050/KL (cess)+ Rs 0.10 per litre (Urban Transport Fund) + Rs .25 per litre (Special Infrastructure Development Fee) +24.79% VAT+10% additional tax on VAT
Rajasthan	36% VAT+Rs 1,500/KL road development cess
Sikkim	25.25% VAT+ Rs 3,000/KL cess

State wise tax on petrol in India

Tamil Nadu	15% + Rs 13.02 per litre
Telangana	35.20% VAT
Tripura	25% VAT+ 3% Tripura Road Development Cess
Uttar Pradesh	26.80% or Rs 18.74/litre whichever is higher
Uttarakhand	25% or Rs 19/litre whichever is greater
West Bengal	25% or Rs 13.12/litre whichever is higher as sales tax+ Rs 1,000/KL cess- Rs 17/KL exemption – Rs 1,000/KL sales tax rebate (20% Additional tax on VAT which cannot be recovered)

Impact of tax fluctuation on economic growth

Taxes affect how people spend and how economy grows. When petrol and diesel taxes increase, people use less fuel, which reduces pollution. But, higher fuel prices hurt poor families more because they spend more of their income on fuel.

This creates problem:

• Fuel taxes help environment.
• Fuel taxes increase burden on poor households.

Better solution is to keep fuel taxes (to reduce consumption and pollution). But use part of collected money to help poor families through subsidies or cash support. This way, pollution is reduced and poor households receive support.

I hope all these information about the tax on petrol and diesel in India state wise is cleared, but still, if you have any doubts regarding that you can mention in comment box.

Road Tax Delhi

Road Tax Maharashtra

Road Tax Karnataka