Once 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 value of petrol—factoring in crude, refining, and seller margins—is simply ₹45 per litre. But customers are paying upwards of ₹100. The ₹55 distinction? Largely tax.
In response to 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 worth.
“The federal government wins. You lose,” he wrote bluntly, noting that oil costs have dipped in latest months, however client prices haven’t budged. As an alternative, tax charges climbed. On April 7, 2025, the Centre raised excise obligation by ₹2 per litre—with no seen enhance on the pump. Oil firms absorbed the hike, maintaining costs steady however income lean.
Regardless of public give attention to 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 international oil drops, the tax burden on Indian drivers stays one of many heaviest worldwide.
