All About Petrol Tax in Delhi
The information in this article was last updated on 21st October 2022.
Tax on petrol in Delhi is different from that in other states and regions because of its constituent VAT and other applicable taxes. Hence, to know more about these taxes, read below.
Moreover, before Diwali, excise duty on petrol was decreased for oil corporations, which they passed on to consumers. Therefore, the Indian government cut petrol prices by ₹5.7 to ₹6.35. States with higher VAT saw a more considerable reduction in petrol prices.
What Is the Petrol Tax levied in Delhi?
In November 2021, the Central Government slashed the excise duty on both petrol and diesel. Delhi wasn’t far behind as the State Government also reduced VAT on petrol from 30% to 19.40%. As of 21st October 2022, the petrol price in Delhi is ₹95.41.
In the table below, you will get the entire break-up of the petrol tax in Delhi. Take a look.
| Elements | Effective as of 21st October (in ₹ per litre) |
|---|---|
| Price charged to dealers | ₹57.35 per litre |
| Excise duty (Levied by the Central Government) | ₹19.90 per litre |
| Average dealer commission | ₹3.87 per litre |
| VAT (Levied by the State Government) | ₹15.60 per litre {19.40% of (fuel price charged to dealers + excise duty + avg. dealer commission)} |
| Retail selling price at Delhi | ₹96.72 per litre |
(Note: The above table serves as an example to explain the petrol tax breakup, with data taken from reliable and authorised sources, as of 27th Jan 2022. The actual prices, however, may vary as fuel price, dealer’s commission, cess and other such aspects change periodically. Check the latest petrol prices in Delhi).
Who Levies Petrol Tax in Delhi?
The central government levies the central excise duty (approximately ₹19.90) while the state government levies the VAT (approximately ₹15.60). So it is a combination of both that controls the petrol price in Delhi.
Recently, the Central government has reduced the excise duty on petrol. However, the Delhi petrol dealers association has demanded that the Delhi government further reduce the VAT on petrol, hoping it would boost sales.
What Are the Factors Affecting the Petrol Tax in Delhi?
Below are the various factors affecting the petrol tax in Delhi.
1. Price of Crude Oil
International politics, demand and supply, future oil reserves are some of the factors that affect the price of crude oil.
2. Cost for Dealers
Oil Marketing Companies distribute petrol and charge a price to dealers. This cost is reflected in the cost paid by consumers.
3. Dealer’s Commission
Oil Marketing Companies pay a commission to petrol pump owners, which affects the price of petrol in Delhi.
4. Central Excise Duty
The Central Government levies this duty which ultimately is paid by the consumer.
5. State’s Sales Tax
Every State levies a sales tax based on different factors like crude oil price, dealer’s commission etc.
Is the Petrol Tax Same in All Places in Delhi?
The petrol tax is the same in all places in Delhi. However, the dealer’s commission varies. Hence, the price of the petrol may vary slightly, but the tax remains the same.
That was all about the tax on petrol in Delhi. Moreover, you should know that the prices vary every day so you must keep abreast of it.
Frequently Asked Questions
Does petrol tax in Delhi include GST?
No petrol does not fall under the purview of GST.
What other factors affect petrol prices in Delhi?
Demand for fuel and the number of refineries available also affect fuel prices.