Lok Sabha Question No. 2277 (UNSTARRED), answered on 2019-07-08
Subject: Rate of Tax on Petrol/Diesel
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Ramya  Haridas

## LOK SABHA UNSTARRED QUESTION NO. 2277

## TO BE ANSWERED ON 8 TH  JULY, 2019

## Rate of Tax on Petrol/Diesel

## 2277.   MS. RAMYA HARIDAS:

## पेट्रोलियम और प्राक ृ लिक गैस मंत्री

## Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a) the details of rate of taxes being levied by the Government on petrol and diesel;
- (b) whether the Government is considering to delink the pricing of petrol, diesel and gas from the market and take them under its own control and if so, the details thereof and if not, the reasons therefor; and
- (c) the details of method by which the Government is planning to prompt oil companies for making oil cheaper?

## ANSWER

## पेट्रोलियम और प्राक ृ लिक गैस मंत्री (श्री धमेन्द्र प्रधान)

## MINISTER OF PETROLEUM AND NATURAL GAS (SHRI DHARMENDRA PRADHAN)

- (a) Effective from July 6 th , 2019, Central Excise duty rates on petrol and diesel are ` 19.98/litre and ` 15.83/litre respectively. State wise actual rates of VAT/Sales tax on petrol and diesel as on 01.07.2019 are given as Annexure .
- (b) & (c) Prices of petrol and diesel have been made market-determined by the Government with effect from 26.06.2010 and 19.10.2014 respectively. Since then, the Public Sector Oil Marketing Companies (OMCs) take appropriate decision on pricing of petrol  and  diesel  in  line  with  international  product  prices  and  other  market conditions. The  Government  continues  to  modulate  the  effective  price  to consumer for Subsidized Domestic LPG and retail selling price of PDS Kerosene. The prices of petroleum products are linked to the price of respective products in the international market.

Annexure referred to in reply to part (a) of Lok Sabha Unstarred Question No. 2277 asked by Ms. Ramya Haridas to be answered on 8 th July, 2019 regarding 'Rate of Tax on Petrol/Diesel'.

|   Sr. No | State                                    | Petrol                                                                                                                                           | Diesel                                                                                                                                          |
|----------|------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|
|        1 | Andhra Pradesh                           | 31% VAT + ` 2/litre VAT                                                                                                                          | 22.25% VAT + ` 2/litre VAT                                                                                                                      |
|        2 | Arunachal Pradesh                        | 16.20% VAT                                                                                                                                       | 8.60% VAT                                                                                                                                       |
|        3 | Assam                                    | 32.66% or ` 14 per litre whichever is higher as VAT , Reduction of ` 2.5/Litre                                                                   | 23.66% or ` 8.75 per litre whichever is higher as VAT, Reduction of ` 2.5/Litre                                                                 |
|        4 | Bihar                                    | 22.20% VAT (30% Surcharge on VAT as irrecoverable tax)                                                                                           | 15% VAT (30% Surcharge on VAT as irrecoverable tax)                                                                                             |
|        5 | Chhattisgarh                             | 21% VAT + ` 2/litre VAT                                                                                                                          | 21% VAT + ` 1/litre VAT                                                                                                                         |
|        6 | Delhi                                    | 27% VAT                                                                                                                                          | ` 250/KL air ambience charges + 16.75% VAT                                                                                                      |
|        7 | Goa                                      | 20% VAT + 0.5% Green cess                                                                                                                        | 18% VAT + 0.5% Green cess                                                                                                                       |
|        8 | Gujarat                                  | 17% VAT+ 4% Cess on Town Rate &VAT                                                                                                               | 17% VAT + 4 %Cess on Town Rate &VAT                                                                                                             |
|        9 | Haryana                                  | 22.26% or ` 14.25/litre whichever is higher as VAT+5% additional tax on VAT                                                                      | 13.24% VAT or ` 8.15/litre whichever is higher as VAT+5% additional tax on VAT                                                                  |
|       10 | Himachal Pradesh                         | 23.10% VAT                                                                                                                                       | 11.60% VAT                                                                                                                                      |
|       11 | Jammu& Kashmir                           | 24% MST+ ` 5/Litre employment cess, Reduction of ` 2.5/Litre                                                                                     | 16% MST+ Rs.1/Litre employment cess , Reduction of ` 0.5/Litre                                                                                  |
|       12 | Jharkhand                                | 22% on the sale price or ` 15.00 per litre, whichever is higher + Cess of ` 1.00 per Ltr and this calculated amount reduced by ` 2.50 per litre. | 22% on the sale price or ` 8.37 per litre, whichever is higher + Cess of ` 1.00 per Ltr and this calculated amount reduced by ` 2.50 per litre. |
|       13 | Karnataka                                | 32% sales tax                                                                                                                                    | 21% sales tax                                                                                                                                   |
|       14 | Kerala                                   | 30.08% sales tax+ ` 1/litre additional sales tax + 1% cess                                                                                       | 22.76% sales tax+ ` 1/litre additional sales tax + 1% cess                                                                                      |
|       15 | Madhya Pradesh                           | 28%VAT + ` 1.5/litre VAT+1%Cess                                                                                                                  | 18% VAT+1% Cess                                                                                                                                 |
|       16 | Maharashtra - Mumbai, Thane &Navi Mumbai | 26% VAT+ ` 7.12/Litre additional tax                                                                                                             | 24% VAT                                                                                                                                         |
|       17 | Maharashtra (Rest of State)              | 25% VAT+ ` 7.12/Litre additional tax                                                                                                             | 21% VAT                                                                                                                                         |
|       18 | Manipur                                  | 21.20% VAT                                                                                                                                       | 10.60% VAT                                                                                                                                      |
|       19 | Meghalaya                                | 22% VAT + 2% surcharge, Reduction of ` 2.5/Litre                                                                                                 | 13.5% VAT +2% surcharge, Reduction of ` .2.5/Litre                                                                                              |
|       20 | Mizoram                                  | 20% VAT                                                                                                                                          | 12% VAT                                                                                                                                         |
|       21 | Nagaland                                 | 20.38% VAT +5% surcharge + ` 1.50/Litre as road maintenance cess                                                                                 | 10% VAT+ 5% surcharge + ` 1.50/Litre as road maintenance cess                                                                                   |

| Sr. No                                         | State                                          | Petrol                                                                                                                                      | Diesel                                                                                                                                              |
|------------------------------------------------|------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
| 22                                             | Odisha                                         | 26% VAT                                                                                                                                     | 26% VAT                                                                                                                                             |
| 23                                             | Punjab                                         | ` 2050/KL (cess) +20.11% VAT+10% additional tax on VAT                                                                                      | ` 1050/KL (cess) + 11.80% VAT+10% additional tax on VAT                                                                                             |
| 24                                             | Rajasthan                                      | 26% VAT+ ` 1500/KL road development cess                                                                                                    | 18% VAT+ ` 1750/KL road development cess                                                                                                            |
| 25                                             | Sikkim                                         | 25% VAT+ ` 3000/KL cess + ` 100/KL sikkim consumer welfare fund                                                                             | 17.5% VAT + ` 2500/KL cess + ` 100/KL sikkim consumer welfareFund                                                                                   |
| 26                                             | Tamil Nadu                                     | 34% VAT                                                                                                                                     | 25% VAT                                                                                                                                             |
| 27                                             | Telangana                                      | 35.20% VAT                                                                                                                                  | 27% VAT                                                                                                                                             |
| 28                                             | Tripura                                        | 23% VAT+ 3% Tripura Road Development Cess                                                                                                   | 15.50% VAT+ 3% Tripura Road Development Cess                                                                                                        |
| 29                                             | Uttarakhand                                    | 22.07% or ` 14.50/litre whichever is higher as VAT                                                                                          | 13.53% VAT or ` 8.40/litre whichever is higher as VAT                                                                                               |
| 30                                             | Uttar Pradesh                                  | 23.78% or ` 14.41/Litre- whichever is higher                                                                                                | 14.05% or ` 8.43/Litre- whichever is higher                                                                                                         |
| 31                                             | West Bengal                                    | 25% or ` 13.12/litre whichever is higher as sales tax+ ` 1000/KL cess- ` 1000/KL exemption (20% Additional tax on VAT as irrecoverable tax) | 17% or ` 7.70/litre whichever is higher as sales tax + ` 1000/KL cess - ` 1290/KL sales tax rebate (20% Additional tax on VAT as irrecoverable tax) |
| 32                                             | Andaman& Nicobar Islands                       | 6%                                                                                                                                          | 6%                                                                                                                                                  |
| 33                                             | Chandigarh                                     | ` 10/KL cess +17.45% VAT                                                                                                                    | ` 10/KL cess + 9.02% VAT                                                                                                                            |
| 34                                             | Dadra &Nagar Haveli                            | 20% VAT                                                                                                                                     | 15% VAT                                                                                                                                             |
| 35                                             | Daman &Diu                                     | 20% VAT                                                                                                                                     | 15% VAT                                                                                                                                             |
| 36                                             | Lakshadweep                                    | Nil                                                                                                                                         | Nil                                                                                                                                                 |
| 37                                             | Puducherry                                     | 21.15% VAT                                                                                                                                  | 17.15% VAT                                                                                                                                          |
| Source- (As per details provided by IOCL/HPCL) | Source- (As per details provided by IOCL/HPCL) | Source- (As per details provided by IOCL/HPCL)                                                                                              | Source- (As per details provided by IOCL/HPCL)                                                                                                      |

Note:- In addition to above, VAT/Sales Tax at applicable rates is also levied on dealers' commission in Arunachal Pradesh,  Delhi,  Gujarat,  Haryana,  Madhya  Pradesh,  Punjab,  Chandigarh,  Puducherry,  Andaman  &  Nikobar, Meghalaya, Dadar Nagar Haveli and Daman & Diu.