If you fill your tank in Delhi, over half your petrol invoice vanishes into authorities coffers—not the oil firms.
Analyst Sujay U broke down the maths on LinkedIn, revealing that the true price of petrol—factoring in crude, refining, and seller margins—is simply ₹45 per litre. But customers are paying upwards of ₹100. The ₹55 distinction? Principally tax.
In accordance with Sujay, petroleum taxation funneled a staggering ₹7.5 lakh crore into central and state authorities accounts in FY 2023-24. That determine rivals the mixed GDP of Sri Lanka and Bhutan. In Delhi alone, taxes account for roughly 55–56% of the pump value.
“The federal government wins. You lose,” he wrote bluntly, noting that oil costs have dipped in current months, however shopper prices haven’t budged. As an alternative, tax charges climbed. On April 7, 2025, the Centre raised excise responsibility by ₹2 per litre—and not using a seen enhance on the pump. Oil firms absorbed the hike, retaining costs secure however income lean.
Regardless of public deal with oil firms, Sujay emphasised that “they’re incomes far lower than the federal government.” Central authorities collects 60% of its oil sector income from taxes, whereas states derive a staggering 90% from the identical.
“You are not simply fueling your automotive,” Sujay wrote. “You are fueling India’s largest money-minting machine.”
As petrol costs hover excessive even when world oil drops, the tax burden on Indian drivers stays one of many heaviest worldwide.
