The petrol and diesel rates remained unchanged on Wednesday. Fuel prices in India are revised daily at 6 am after being decided by top oil companies. The fuel prices are not controlled by the government. The oil companies need to adjust their prices according to global rates. The Central government regulates fuel prices through excise duty, base prices and cap prices.
The most recent nationwide adjustment was made in May 2022 by Finance Minister Nirmala Sitharaman, who slashed the excise duty on petrol and diesel by ₹8 per litre and ₹6 per litre, respectively.
The price at which the petrol or diesel dealers or distributors buy from oil marketing companies+excise duty+dealer’s commission+ value added tax levied by the state government= Petrol price
The fuel prices in India are not under goods and service tax. While the Centre collects excise duty, the state governments collect VAT. Since VAT is different for each state, hence the pricing. Rajasthan levies the highest VAT in the country, followed by Madhya Pradesh and Maharashtra.