For every ₹100 spent on petrol and diesel in India, ₹70 goes towards taxes

• The Indian government increased the excise duty on petrol and diesel by ₹10 and ₹13 per litre respectively, hoping to mop up ₹1.6 lakh crore this year.
• As a result of this, tax on petrol and diesel comprises of 70% of the total price per litre
• With the crude oil prices at historically low levels, this could help the government reduce the fiscal deficit at a time when the economy has come to a standstill due to the nationwide lockdown.

Amid the falling crude prices, the cash-strapped Indian government has increased the excise duty on petrol and diesel by ₹10 and ₹13 per litre respectively. The increase in excise duty has now taken the tax component in the auto fuels to almost 70% and with this, the government hopes to mop up ₹1.6 lakh crore this year.

Various state governments across the country have increased VAT on petrol and diesel to make up for the loss of revenue caused by the Coronavirus lockdown. For example, the Delhi government recently increased the VAT petrol to 30% and the VAT on diesel was almost doubled to 30%.


For every ₹100 of petrol, ₹70 goes towards taxes – here’s how


Note: Prices in Delhi, may vary in other states

See also:

India to gain ₹1.6 lakh crore this fiscal from record excise duty hike on petrol, diesel

Petrol and diesel prices are rising as states hike tax to cover coronavirus cost⁠— the steepest hike is in Delhi

The excise duty on petrol rises by ₹10 and on diesel by ₹13 starting May 6