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Why Petrol & Diesel Are So Expensive in India – Full Tax Breakdown

How do fuel prices in India actually increase? This clear breakdown shows exactly where your money goes when you fill Petrol, Diesel, LPG or CNG.
Petrol (₹105/litre)

Basic Price: ₹55
Central Govt. Tax: ₹20
State Govt. Tax: ₹25
Dealer/Pump Margin: ₹5

Diesel (₹89/litre)

Basic Price: ₹50
Central Govt. Tax: ₹15
State Govt. Tax: ₹20
Dealer/Pump Margin: ₹4

LPG Gas (₹51/kg)

Basic Price: ₹35
Central Govt. Tax: ₹5
State Govt. Tax: ₹8
Dealer/Pump Margin: ₹3

CNG Gas (₹56/kg)

Basic Price: ₹40
Central Govt. Tax: ₹5
State Govt. Tax: ₹7
Dealer/Pump Margin: ₹3

Taxes (Central + State) make up a huge portion of the final price. Understanding this helps you see why fuel prices fluctuate so much.
Which part surprised you the most — the high taxes or the dealer margin?
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Timestamps:
0:00 – Intro: How Fuel Prices Increase in India
1:10 – Petrol ₹105/litre Breakdown
2:40 – Diesel ₹89/litre Breakdown
4:00 – LPG Gas ₹51/kg
5:20 – CNG Gas ₹56/kg
6:50 – Why Taxes Matter So Much
8:00 – Final Tips & Your Opinion
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