Different Types of Taxes on Petrol in Rajasthan

In Rajasthan, the VAT that is levied is 29.04% plus Rs.1,500 per KL road development cess.  Apart from state VAT, the different components which determine the retail price of fuel.

Petrol Prices Without Tax

Who levies the Petrol Tax in Rajasthan?

The excise duty on petrol is levied by the Central Government. In the same way, the Rajasthan Government levies VAT on petrol

What Are the Factors Affecting Petrol Tax in Rajasthan?

Given below are the factors that affect the price of petrol in Rajasthan:

1. Commission of Dealers: The Oil Marketing Companies need to pay commission to the fuel dealers which comprises the profit, income, and cost. All these components affect the petrol price. 

1. Demand and Supply: With the rise in the number of vehicles, there is a surge in the demand for petrol. Apart from this, the oil refinery companies purchase crude oil from the global markets to process it into petrol due to which supply remains lesser. Thus, if the demand of the petrol is more than supply, the price of petrol will automatically increase and vice versa. 

1. Excise Duty and VAT: The central excise duty on petrol is fixed across the country because it is a predefined charged imposed on petrol costs. However, VAT varies from state to state. While determining VAT, the state governments consider various factors like dealer's commission, excise duty, etc. 

1. Availability of Refineries: The crude oil is generally sent to oil refineries to process it into petrol. So, if there is a lack of availability of refineries and the demand of petrol is more than the demand, the price will automatically rise. 

1. Value of Indian Rupee vs US Dollar: The transaction of crude oil is done in US dollars. So, if there is a change in USD dollars, the petrol price will automatically fluctuate. 

Is the Petrol Tax in Rajasthan Similar Across All Cities?

The petrol tax in Rajasthan is similar across all cities but its price may vary due to the change in the dealer's commission and others in different cities.