Everyday & Conversion · Petroleum levy & taxes
Petrol Price Tax Calculator
How much of a litre is actually fuel, and how much is tax. Enter the components from the current price notification — nothing is prefilled, because every one of them moves on a fortnightly cycle.
The build-up
Where each rupee goes
| Component | Type | Rs per litre | Share of pump price |
|---|
A per-litre levy behaves very differently from a percentage: when the fuel gets cheaper, the levy stays put and the tax share of your price goes up.
Reading the result
The levy is per litre, not a percentage
Petroleum levy is a fixed rupee amount on each litre. It does not rise and fall with the international price, which has an awkward consequence: when the base price drops, the levy becomes a larger share of what you pay at the pump.
That is why a substantial fall in crude often produces a modest fall at the pump. The tax component is not moving with it.
Why the pump price moves less than you expect
The price you pay is a stack — ex-refinery cost, levy, distribution and dealer margins, and any sales tax. Only part of it tracks the international market. Working out how much of a litre is actually tax is the point of this page, and the answer is usually higher than people assume.
Across a year it is a large number
For a daily commuter the tax component of fuel is comparable to a substantial monthly bill. Seeing it annually rather than per litre is what makes it real, and what makes a change in driving pattern worth costing properly.
Where this stops
Rates are entered because they are revised on a set schedule by the government and differ between petrol, diesel and high-octane. Use the notification for the current period, and note that the pump price in your city may include local variations this does not model.
FAQs
Fuel tax FAQs
Why are no prices filled in?
Because they would be wrong within a fortnight. Ex-refinery prices move on the international cycle, the petroleum levy is revised in and outside the budget, freight equalisation changes, and margins are notified separately. A calculator with last month's numbers baked in is worse than one that asks: take today's notification, enter the components, and the arithmetic is then exactly right.
Where do I find the component figures?
The price notification published when pump prices are revised sets out ex-refinery price, the levy, and the notified OMC and dealer margins; freight equalisation is published alongside. Enter them per litre in the same units.
Is there sales tax on petrol?
Sales tax on petroleum products has been kept at zero for long stretches while the petroleum levy did the revenue work instead — which is why the field defaults to zero rather than to a standard rate. It is not a permanent feature of the law, so check the notification in force before assuming either way.
What is the petroleum levy?
A fixed amount per litre, not a percentage. That matters: when the international price falls, a per-litre levy takes a bigger share of a smaller price, so the tax share of your pump price rises even though the levy itself has not changed.
What is freight or IFEM?
Inland freight equalisation — a per-litre amount that lets the same pump price apply nationwide rather than rising with distance from the port or refinery. It is a cost element, not a tax, and is shown separately above for that reason.
Are the OMC and dealer margins tax?
No. They are notified margins for the marketing company and the filling station. They are part of why the pump price exceeds the fuel cost, but they are not government revenue, and the calculator keeps them out of the tax figure.
Why does my tax share look so high?
Because per-litre charges are heavy relative to the underlying commodity, and because the levy does not shrink when the fuel gets cheaper. Working it out per litre and then across a year of driving is usually the part that surprises people.
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