India Petrol Tax Rate: In India, the tax on petrol and diesel varies from state to state, as they are outside the scope of GST. This results in high taxes in some areas and very low taxes in others.
States' arbitrariness on petrol and diesel
India Petrol Tax Rate: Petrol and diesel are outside the scope of GST in India, so each state sets its own VAT (Value Added Tax). This is why there is a significant variation in fuel prices across the country. Some taxes are very low, while others are very high, directly impacting the pockets of ordinary consumers.
Which states have the highest taxes on petrol?
Telangana has the highest VAT on petrol in the country, at 35.20 percent, making it the highest in India. Several other states also have higher tax rates, such as...
- Andhra Pradesh: 31 percent + ₹4 per litre + road development cess
- Kerala: 30.08 percent + ₹1 per litre + other cess
- Karnataka: 29.84 percent
- Rajasthan: 29.04 percent + Road Development Cess
- Madhya Pradesh: 29 percent + ₹2.50 per liter + 1 percent cess
- Odisha: 28 percent
- Maharashtra: 25 percent + ₹5.12 per liter additional tax
- West Bengal: 25 percent plus cess
- Manipur: 25 percent
What are the medium tax states?
- Assam: 24.77 percent or ₹18.80 per liter
- Chhattisgarh: 24 percent + ₹2 per liter
- Bihar: 23.58 percent + surcharge
- Nagaland: 21.75 percent
- Goa: 21.5 percent + green cess
- Delhi: 19.40 percent
- Uttar Pradesh: 19.36 percent or ₹14.85 per litre
- Haryana: 18.20 percent plus additional tax
What are the states with the lowest taxes?
- Tamil Nadu: 13 percent + ₹11.52 per litre
- Gujarat: 13.7 percent plus cess
- Arunachal Pradesh: 14.50 percent
- Lakshadweep: 10 percent
- Andaman and Nicobar: 1 percent (lowest in the country)
Big difference in taxes across states
Taxes on petrol and diesel vary significantly between states. The difference between states with the highest and lowest VAT is over 34 percent. This means that if the base price of petrol is ₹100, the tax can reach ₹35 in some places, while in others it remains around ₹1.
