Petrol Price Build-Up Calculator
See exactly where every rupee of the petrol price goes — base price, excise duty, dealer commission, and state VAT.
Your inputs
State VAT is charged on top of the base price AND the central excise duty AND the dealer commission — not just on the base price. Defaults are representative estimates for September 2026 (post the March 2026 excise cut); enter your own state's current published rates for precision, since these change with government notifications and state budgets.
Estimates only. Figures are indicative and do not constitute financial advice.
About the Petrol Price Build-Up Calculator
"Why is petrol so expensive when crude oil isn't" is one of the most-asked, least-clearly-answered questions in Indian personal finance — the Indian crude oil basket hit $128.70 a barrel in September 2026, its highest since April, yet pump prices barely moved, because tax cuts and OMC margins are absorbing most of that swing. "Petrol price calculator," "petrol price breakdown," and "petrol price build up calculator" are all searched by people who want the real, itemized answer instead of a vague "it's mostly tax" — this calculator gives you that exact breakdown, line by line.
Four components stack up to your final pump price: the base price (crude oil cost plus refining, freight, and the OMC's marketing margin), central excise duty (a flat, government-set rupee amount, recently cut in March 2026), dealer commission (paid to the petrol pump), and state VAT — which is the part almost everyone gets wrong. VAT isn't charged on the base price alone; it's charged on the base price PLUS excise duty PLUS dealer commission, meaning you're paying tax on top of tax. That compounding is a large part of why petrol costs so much more than crude oil alone would suggest, and it's also why petrol prices differ so much between states — the base price and central excise are the same nationwide, but each state sets its own VAT rate.
Enter your own base price, excise duty, dealer commission, and state VAT rate (check your state's current published rate for precision — these change with government notifications and state budgets) to see the exact price build-up and what percentage of what you pay is actually tax.
How to use this calculator
- Enter the base price (crude, refining, freight, and OMC margin).
- Enter the central excise duty.
- Enter the dealer commission.
- Enter your state's VAT rate to see the final retail price and total tax share.
Frequently asked questions
›Why does petrol cost so much more than crude oil suggests?
Refining, freight, and OMC marketing margin add to the crude cost to form the base price, and then central excise duty and dealer commission are added on top of that — after which state VAT is charged on the entire pre-VAT total, not just the base price, compounding the tax further.
›Is VAT charged only on the base price, or on the tax too?
VAT is charged on the base price plus excise duty plus dealer commission combined — a tax on top of tax — which is a large part of why the final retail price is so much higher than the base price alone.
›Why do petrol prices differ between states?
The base price and central excise duty are set nationally and are the same everywhere, but state VAT rates vary significantly (commonly in the 15-40% range across states), and since VAT is a percentage applied on top of everything else, even a small VAT-rate difference produces a real, visible price difference at the pump.
›Has excise duty on petrol changed recently?
Yes — the central government cut the Special Additional Excise Duty on petrol in March 2026, bringing total central excise duty down to roughly ₹3 per litre, a multi-year low, as part of an effort to ease pressure on oil marketing companies.
›How much of what I pay for petrol is actually tax?
It varies by state and by the current excise rate, but historically taxes (excise duty plus state VAT combined) have made up anywhere from roughly a fifth to as much as half of the pump price — enter your own numbers above to see your exact current share.
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Crude Oil Hit a 5-Month High — So Why Didn't Petrol Get More Expensive?