Rs100 per litre tax on petrol, Rs 94 on diesel: Ministry

A significant portion of petroleum prices in the country consists of government-imposed taxes, according to official documents issued by the Energy Ministry on Monday.

The ministry’s pricing breakdown reveals that 39 percent of the per-litre price of petrol comprises taxes.

Consumers are currently paying Rs 100.21 per litre in taxes on petrol alone.

This includes Rs 13.31 in customs duty, Rs 84.40 in petroleum levy, and Rs 2.50 in climate support levy.

Similarly, diesel prices also carry a substantial tax burden.

The document stated that Rs94.93 per litre of high-speed diesel represents taxes, accounting for 34 percent of the total per-litre price.

The tax components on diesel included Rs 15.68 in customs duty, Rs 76.21 in petroleum levy, and Rs 2.50 in climate support levy.

In addition to taxes, oil marketing companies (OMCs) and dealers also receive fixed margins.

OMCs charge Rs 7.87 per litre on both petrol and diesel, while dealers earn Rs 8.64 per litre on each product.

The detailed tax structure comes at a time when the government has increased petroleum prices.

Petrol has been raised by Rs 5 per litre, taking the new price to Rs 258.17 per litre. High-speed diesel has been increased by Rs7.32 per litre, bringing its new price to Rs275.70 per litre.

The latest hike, coupled with the high proportion of taxes in fuel pricing, is expected to add further pressure on inflation and transportation costs across the country.