This article is from Feb 19, 2021

Is the Central Government levying lower taxes on petrol?


The petrol price hike is constantly being spread on social media against the Narendra Modi government. Who / what is the real cause? The base price of petrol is Rs 30.50, central government tax is Rs 17.42, the state tax is Rs 40.55 and distributors are Rs 8.50. Total of Rs.96.97 

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Some social media users are blaming the central government for the increase in petrol and diesel prices and saying that the state government pays more taxes than the central government. Just last July, they were spreading a similar list and misrepresenting it.

Read more: How much is the actual tax on petrol and diesel in India?

Over the past few days, petrol prices have risen to Rs 100 in some states. The reason why petrol and diesel prices vary from state to state is the VAT levied in the respective states. The maximum in Rajasthan is 36% VAT + Rs 1.5 road chess tax.

As on February 18, 2021, the central government has levied a tax of Rs 32.90 on petrol and Rs 31.80 on diesel. It is noteworthy that the central government raised the excise tax last year.

Read more: The  reason why Prime Minister Modi says petrol price is Rs 100!

Prime Minister Narendra Modi has blamed previous governments for failing to reduce India’s dependence on fuel imports amid rising criticism of the ruling government over rising petrol and diesel prices.

Despite the low international crude oil prices, India has raised taxes to fix it without lowering petrol and diesel prices. At a time when international crude oil prices are on the rise, prices are being raised further without reducing taxes. The high taxes of the central and state governments are the reason for the high price of petrol and diesel.

In India, a liter of petrol sold for Rs 90 to Rs 100 is taxed by the people as excise duty, VAT, agricultural tax, road and infrastructure tax.


In our search, the information spread that a liter of petrol is taxed at Rs 17.42 by the central government and Rs 40.55 by the state government is false information.

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