Today's Diesel Price in Maharashtra

The final price of diesel paid by consumers in Maharashtra is a combination of several components. Here’s a breakdown of how the price is calculated: 

• Crude Oil Price: This is the base price of crude oil purchased from international markets. Oil Marketing Companies (OMCs) like Indian Oil, BPCL, and HPCL buy crude oil. 

• Refinery Transfer Price (RTP): This is the price at which the crude oil is sold to refineries for processing. 

• Freight and Other Charges: Transportation costs, entry taxes, and other operational costs are added to the price. 

• Price Charged to Dealers: This is the price at which the processed diesel is sold to the petrol pump dealers. This price includes the costs mentioned above. 

• Central Government's Excise Duty: The central government levies an excise duty on the fuel. 

• Dealer's Commission: A commission is added for the fuel pump dealers. 

• State Government's Value Added Tax (VAT): The Maharashtra state government imposes a VAT on the price of the fuel (including the dealer's commission). 

• Final Retail Price: The sum of all the above components gives the final retail selling price of diesel that the consumer pays. 

The formula can be simplified as: 

Final Retail Price of Diesel = (Cost of Crude Oil + Freight Charges) + Central Excise Duty + State VAT + Dealer Commission 

Factors Affecting Diesel Prices in Maharashtra 

Several factors contribute to the final retail price of diesel in Maharashtra: 

• Rupee to US Dollar Exchange Rate: As crude oil is purchased in US dollars, any fluctuation in the exchange rate affects the import cost. 

• Dealer Commission: A commission is paid to the fuel pump owners. 

• State Government Taxes: The Maharashtra state government imposes a Value Added Tax (VAT) on diesel. 

• Central Government Taxes: The central government levies excise duty on diesel. 

State Taxes and Diesel Price in Maharashtra:

As discussed earlier, state taxes form a major portion of diesel price in Maharashtra. Currently, the state government levies 28.41% VAT on a litre of diesel in Mumbai, Navi Mumbai, and Thane and in rest of the state it charges 25.38%.

Diesel Rate versus Petrol Rate in Maharashtra:

Diesel in Maharashtra is cheaper than petrol because of the tax component involved in the pricing. Just like in any other Indian state, the state and central taxes levied on diesel are lesser than that of petrol, hence once could find the difference in the retail selling price of both of commodities.

The Maharashtra government currently charges 47.94% VAT on a litre of petrol in Mumbai, Thane and Navi Mumbai and in rest of the state it charges 46.81%. The VAT on diesel is 28.41% in the three cities, while it is 25.38% in the rest of the state. The huge difference in the tax rate results in the price difference of petrol and diesel.

*Disclaimer: BankBazaar makes no guarantee or warranty on the accuracy of the data provided on this page, the prevailing prices are susceptible to change and provided on an as-is basis. We accept no liability for any loss arising from the use of the data contained on this website.