Petrol Price Shock: Over 40% of Your Fuel Bill is Tax!

• In Mumbai, petrol costs approximately ₹103.54 per liter, with a significant portion being taxes.
• The actual base price of petrol (including freight) is around ₹55-₹58 per liter.
• Central Excise Duty is ₹19.90, and State VAT (highest in Maharashtra) is ₹22-₹25.
• Approximately ₹42-₹45 per liter goes to the government as tax, accounting for 80-90% of the base price.
• Bringing petrol under GST could reduce prices to ₹70-₹75, but governments resist due to revenue loss.

Why It Matters: A large portion of petrol price is government tax, making fuel expensive despite crude oil fluctuations.