Lok Sabha Question No. 2467 (UNSTARRED), answered on 2023-08-03
Subject: Price Rise of Diesel and Petrol
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Sudarshan Bhagat

## LOK SABHA UNSTARRED QUESTION NO. 2467 TO BE ANSWERED ON 03 AUGUST, 2023

## Price Rise of Diesel and Petrol

†2467. SHRI SUDARSHAN BHAGAT:

## पेोलयम और ाक ृतक गैस मंी

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

- (a) whether the situation in the international market is the cause of rise in prices of petrol and diesel in the country;
- (b) if so, the various measures taken by the Government to deal with the said situation; and
- (c) if not, the details of additional taxes imposed by the State Governments on the prices of petrol and diesel?

## ANSWER

## पेोलयम और ाक ृतक गैस मंालय म राय मंी ( ी रामे वर तेल )

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI RAMESWAR TELI)

- (a) to (c): Prices  of  petrol  and  diesel  in  the  country  have  been  market-determined  with effect from 26.06.2010 and 19.10.2014 respectively. Since then, the Oil Marketing Companies (OMCs) take appropriate decision on pricing of petrol and diesel. Public Sector Oil Marketing Companies (OMCs) have not increased prices of petrol and diesel since 6 th April 2022.

Government has reduced Central  Excise  duty  by  Rs.  13/  litre  and  Rs.  16/  litre  on  petrol  and diesel respectively in two tranches in November 2021 and May 2022. The excise duty reductions were fully passed on to consumers and retail prices fell as a result. The measure was aimed to give  a  further  fillip  to  the  economy  and  to  boost  consumption  and  keep  inflation  low,  thus helping the poor  and middle classes. Subsequently, many States/UTs have also reduced VAT rates on petrol and diesel.

State Governments levy Value Added Tax on sale of Petrol and Diesel. The state-wise details of VAT /Sales tax on petrol and diesel as on 31.07.2023 are given at Annexure.

Annexure  referred  to  in  reply  to  Lok  Sabha  Unstarred  Question  No.  2467  asked  by  Shri Sudarshan Bhagat to be answered on 03.08.2023 regarding 'Price Rise of Diesel and Petrol'

## State-wise details of VAT /Sales tax on petrol and diesel as on 31.07.2023

|   S.No. | State/UT                                 | Petrol                                                                                            | Diesel                                                                                                                       |
|---------|------------------------------------------|---------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------|
|       1 | Andaman& Nicobar Islands                 | 1%                                                                                                | 1%                                                                                                                           |
|       2 | Andhra Pradesh                           | 31% VAT + Rs.4/litre VAT+Rs.1/litre Road Development Cess and Vat thereon                         | 22.25% VAT + Rs.4/litre VAT+Rs.1/litre Road Development Cess and Vat thereon                                                 |
|       3 | Arunachal Pradesh                        | 14.50%                                                                                            | 7.00%                                                                                                                        |
|       4 | Assam                                    | 21.95% or Rs.16.80 per litre whichever is higher                                                  | 20.88% OR Rs. 13.60 per litre whichever is higher Rebate of Rs. 1.66 per litre subject to minimum tax of Rs. 13.60 per litre |
|       5 | Bihar                                    | 23.58% or Rs 16.65/Litre whichever is higher (30% Surcharge on VAT as irrecoverable tax)          | 16.37% or Rs 12.33/Litre whichever is higher (30% Surcharge on VAT as irrecoverable tax)                                     |
|       6 | Chandigarh                               | Rs.10/KL cess +15.24% or Rs.12.42/Litre whichever is higher                                       | Rs.10/KL cess + 6.66% or Rs.5.07/Litre whichever is higher                                                                   |
|       7 | Chhattisgarh                             | 24% VAT + Rs.2/litre VAT                                                                          | 23% VAT + Rs.1/litre VAT                                                                                                     |
|       8 | Dadra and Nagar Haveli and Daman and Diu | 12.75% VAT                                                                                        | 13.50% VAT                                                                                                                   |
|       9 | Delhi                                    | 19.40% VAT                                                                                        | Rs.250/KL air ambience charges + 16.75% VAT                                                                                  |
|      10 | Goa                                      | 20% VAT + 0.5% Green cess                                                                         | 17% VAT + 0.5% Green cess                                                                                                    |
|      11 | Gujarat                                  | 13.7% VAT+ 4% Cess on Town Rate&VAT                                                               | 14.9% VAT + 4 %Cess on Town Rate&VAT                                                                                         |
|      12 | Haryana                                  | 18.20% or Rs.14.50/litre whichever is higher as VAT+5% additional tax on VAT                      | 16.00% VAT or Rs.11.86/litre whichever is higher as VAT+5% additional tax on VAT                                             |
|      13 | Himachal Pradesh                         | 17.5% or Rs 13.50/Litre- whichever is higher                                                      | 13.90% or Rs 10.40/Litre- whichever is higher                                                                                |
|      14 | Jammu &Kashmir                           | 24% MST+ Rs.2/Litre employment cess, Rebate of Rs.4.50/Litre                                      | 16% MST+ Rs.1.00/Litre employment cess , Rebate of Rs.6.50/Litre                                                             |
|      15 | Jharkhand                                | 22% on the sale price or Rs. 17.00 per litre , which ever is higher + Cess of Rs 1.00 per Ltr     | 22% on the sale price or Rs. 12.50 per litre , which ever is higher + Cess of Rs 1.00 per Ltr                                |
|      16 | Karnataka                                | 25.92% sales tax                                                                                  | 14.34% sales tax                                                                                                             |
|      17 | Kerala                                   | 30.08% sales tax+ Rs.1/litre additional sales tax + 1% cess , Social security cess Rs.2 per litre | 22.76% sales tax+ Rs.1/litre additional sales tax + 1% cess , Social security cess Rs.2 per litre                            |
|      18 | Ladakh                                   | 15% MST+ Rs.5/Litre employment cess, Reduction of Rs.2.5/Litre                                    | 6% MST+ Rs.1/Litre employment cess , Reduction of Rs.0.50/Litre                                                              |
|      19 | Lakshadweep                              | 10% VAT                                                                                           | 10% VAT                                                                                                                      |

|   S.No. | State/UT                                               | Petrol                                                                                                                                                                                         | Diesel                                                                                                                                                                                               |
|---------|--------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|      20 | Madhya Pradesh                                         | 29%VAT + Rs.2.5/litre VAT+1%Cess                                                                                                                                                               | 19% VAT+ Rs.1.5/litre VAT+1% Cess                                                                                                                                                                    |
|      21 | Maharashtra - Mumbai, Thane , Navi Mumbai & Aurangabad | 26% VAT+ Rs.5.12/Litre additional tax                                                                                                                                                          | 24% VAT                                                                                                                                                                                              |
|      22 | Maharashtra (Rest of State)                            | 25% VAT+ Rs.5.12/Litre additional tax                                                                                                                                                          | 21% VAT                                                                                                                                                                                              |
|      23 | Manipur                                                | 25% VAT                                                                                                                                                                                        | 13.5% VAT                                                                                                                                                                                            |
|      24 | Meghalaya                                              | 13.50% or Rs13.00/Litre- whichever is higher (Rs.0.10/Litre pollution surcharge)                                                                                                               | 5% or Rs 6.50/Litre- whichever is higher (Rs.0.10/Litre pollution surcharge)                                                                                                                         |
|      25 | Mizoram                                                | 16.36% VAT                                                                                                                                                                                     | 5.23% VAT                                                                                                                                                                                            |
|      26 | Nagaland                                               | 25% VAT or Rs. 16.04/litre whichever is higher +5% surcharge + Rs.2.00/Litre as road maintenance cess , Rebate Rs. 5.5 per litre                                                               | 16.50% VAT or Rs. 10.51/litre whichever is higher +5% surcharge + Rs.2.00/Litre as road maintenance cess , Rebate Rs. 5.1 per litre                                                                  |
|      27 | Odisha                                                 | 28% VAT                                                                                                                                                                                        | 24% VAT                                                                                                                                                                                              |
|      28 | Puducherry                                             | 14.55% VAT                                                                                                                                                                                     | 8.65% VAT                                                                                                                                                                                            |
|      29 | Punjab                                                 | Rs.2050/KL (cess)+ Rs.0.10 per Litre (Urban Transport Fund) + 0.25 per Litre (Special Infrastructure Development Fee)+15.74% VAT plus 10% additional tax or Rs.14.32/Litre whichever is higher | Rs.1050/KL (cess) + Rs.0.10 per Litre (Urban Transport Fund) +0.25 per Litre (Special Infrastructure Development Fee) + 12.00% VAT plus 10% additional tax and or Rs.10.02/Litre whichever is higher |
|      30 | Rajasthan                                              | 31.04% VAT+Rs 1500/KL road development cess                                                                                                                                                    | 19.30% VAT+ Rs.1750/KL road development cess                                                                                                                                                         |
|      31 | Sikkim                                                 | 20% VAT+ Rs.3000/KL cess                                                                                                                                                                       | 10% VAT + Rs.2500/KL cess                                                                                                                                                                            |
|      32 | Tamil Nadu                                             | 13% + Rs.11.52 per litre                                                                                                                                                                       | 11% + Rs.9.62 per litre                                                                                                                                                                              |
|      33 | Telangana                                              | 35.20% VAT                                                                                                                                                                                     | 27% VAT                                                                                                                                                                                              |
|      34 | Tripura                                                | 17.50% VAT+ 3% Tripura Road Development Cess                                                                                                                                                   | 10.00% VAT+ 3% Tripura Road Development Cess                                                                                                                                                         |
|      35 | Uttar Pradesh                                          | 19.36% or Rs 14.85/Litre whichever is higher                                                                                                                                                   | 17.08% or Rs 10.41/Litre whichever is higher                                                                                                                                                         |
|      36 | Uttarakhand                                            | 16.97% or Rs 13.14 Per Ltr whichever is greater                                                                                                                                                | 17.15% or Rs Rs 10.41 Per Ltr whichever is greater                                                                                                                                                   |
|      37 | West Bengal                                            | 25% or Rs.13.12/litre whichever is higher as sales tax+ Rs.1000/KL cess - Rs 1000/KL sales tax rebate (20% Additional tax on VAT as irrecoverable tax)                                         | 17% or Rs.7.70/litre whichever is higher as sales tax + Rs 1000/KL cess - Rs 1000/KL sales tax rebate (20% Additional tax on VAT as irrecoverable tax)                                               |

Source: Petroleum Planning and Analysis Cell (PPAC)