Central and State Tax on Petrol and Diesel in India
Posted on: 08/Oct/2025 2:11:21 PM
Both the Central and State Governments levy taxes on petrol and diesel in India, which together make up a major portion of their retail prices.
Effective April 8, 2025, the Central Government increased the excise duty to:
- ₹13 per litre on petrol, and
- ₹10 per litre on diesel.
In addition to excise duty, State Governments impose their own taxes such as:
- Value Added Tax (VAT)
- Sales Tax
- Other local levies or additional charges
Since the VAT and sales tax rates differ from state to state, petrol and diesel prices vary significantly across India.
These combined taxes play a crucial role in determining the final fuel price paid by consumers at the pump.
