Different Types of Taxes on Petrol in Maharashtra

Here is the list of significant details regarding petrol tax in Maharashtra:

Note:

1. VAT levied by the state government is 25% of the sum of fuel price charged to the dealers, excise duty, and the average dealer commission.
2. The prices may change periodically depending upon the fluctuation in taxes.

Who imposes the petrol tax in Maharashtra?

The accumulation of central excise duty and VAT makes the total petrol prices. The VAT is state imposed, whereas the excise duty is levied by the central government. The fiscal deficit of Maharashtra jumped to 3.30% of gross domestic product due to the global health crisis.

What are the factors that influence the petrol tax in Maharashtra?

The following are the factors that affect the petrol tax in Maharashtra:

1. Demand and supply of fuel: The price of petrol increases on high demand against the low supply of petrol.
2. Central excise duty: The excise duty is imposed on petrol which is a predefined amount, and it does not fluctuate depending upon the global crude oil demand, unlike VAT.
3. State sales tax: his is the value added tax levied by Maharashtra government on petrol prices along with other charges
4. Dealer's cost: This includes freight charges, refining cost, and other charges (as applicable) that are charged by the Oil Marketing Companies (OMCs) to the dealers.
5. Dealer's commission: This includes the income, profit, and other charges that are paid by the OMCs to the petrol pumps as commission.
6. Crude oil price: depending upon global supply and demand, future oil reserves and other international issues, the crude oil price varies which impacts the petrol price of the country.
7. Value of Indian currency against the US Dollar: Increase in the Dollar value increases the cost of buying crude oil, which eventually increases the petrol prices.