Madhya Pradesh levies highest tax on petrol, Rajasthan on diesel: Oil Minister Hardeep Singh Puri

Madhya Pradesh levies the highest sales tax or VAT on petrol in the country, while Rajasthan has the highest tax on diesel, Oil Minister Hardeep Singh Puri told the Lok Sabha on Monday. Heavily taxed petrol and diesel rates have shot to their highest prices this month. Taxes, both central and state, make up for 55 per cent of the retail price of petrol and 50 per cent of diesel rates.

While the central government levies a fixed excise duty of Rs 32.90 a litre on petrol and Rs 31.80 a litre on diesel, states charge an ad valorem rate of VAT that essentially results in per litre tax going up when prices rise, and falling when rates come down.