State levies taxes also contribute to higher prices of petrol and diesel
This is the reason that Mumbai has the highest VAT of 39.78 % VAT on petrol while the rest of Maharashtra pays 38.76%. The VAT rates in Maharashtra are the highest of any state. Followed by Madhya Pradesh ( 36.14 %) and Andhra Pradesh (36.06%) .
The central government also levies a flat excise duty on petrol and diesel which is approximately Rs 14.70 for petrol. As its a flat rate it does not rise or fall with the price of the global fuel prices. more