Diesel Price Today: Rates, State VAT & Price Breakdown

The diesel price today across India is determined under the dynamic fuel pricing mechanism, which revises retail pump rates daily at 6:00 AM IST. Regulated by public sector oil marketing companies (OMCs) based on international benchmark fuel prices, currency exchange rates, central excise duty, dealer commissions, and state-level Value Added Tax (VAT), diesel rates vary significantly between Indian states.

How the Retail Diesel Price is Calculated in India

Understanding your daily diesel rate today begins with the price buildup methodology published by the Petroleum Planning & Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas (MoPNG). The final Retail Selling Price (RSP) paid at the nozzle is built sequentially from base crude refining down to local pump levies.

India imports a large share of its crude oil requirements, making international parity pricing the starting point. Below is the step-by-step diesel price breakdown india follows for domestic retail pricing:

1. Refinery Transfer Price (RTP): OMCs calculate the RTP using the Trade Parity Pricing (TPP) formula, which combines 80% Import Parity Price (IPP) and 20% Export Parity Price (EPP). This is pegged against Singapore/Arab Gulf Gasoil 10 ppm benchmarks and the prevailing USD/INR foreign exchange rate.
2. Inland Freight: Refined diesel is moved via pipelines, rail wagons, or tank trucks from coastal refineries or bulk storage depots to local dispensing depots. Inland freight typically adds ₹0.20 to ₹0.40 per litre in metro regions, but rises in landlocked or hilly states.
3. Price Charged to Dealers (PCD): This equals the Base Refinery Price plus transit freight. This is the net price at which OMCs supply fuel to independent retail petrol pump owners.
4. Central Excise Duty: A uniform central excise tax imposed by the Government of India across all states and Union Territories.
5. Dealer Commission: Oil companies pay pump operators a structured commission per litre sold, compensating them for electricity, staff salaries, evaporation loss, and station upkeep.
6. State Value Added Tax (VAT) & Local Cesses: The state government applies sales tax or VAT on the accumulated total of dealer price, central excise, and dealer commission.

A common misconception is that state VAT applies only to the base price of fuel. In reality, state VAT is levied on top of both the central excise duty and the dealer commission, creating a compounding tax effect.

Excise Duty vs State VAT: Who Taxes What?

Taxes make up a significant portion of what Indian drivers spend on fuel. As of October 2026, the central excise duty on regular diesel stands at a flat ₹15.80 per litre nationwide. This rate reflects the central duty reductions enacted in November 2021 and May 2022, and combines Basic Excise Duty, Special Additional Excise Duty (SAED), and the Agriculture Infrastructure and Development Cess (AIDC).

Because central excise duty is a fixed rupee amount per litre, its percentage share fluctuates depending on the base price. On an average pump rate of ₹90 per litre, central excise constitutes roughly 16% to 18% of the final receipt. If you are comparing your fleet expenses with alternative fuels, read our analysis on petrol price today and tax breakdown as well as running costs in our guide to CNG price today and city rates.

State VAT, by contrast, is generally levied on an ad valorem (percentage) basis. This creates substantial divergence across borders. State sales taxes and supplementary cesses add another 13% to 22% to the final price tag. Consequently, the total tax burden on diesel sits between 30% and 40% nationwide.

Under Article 279A(5) of the Indian Constitution, diesel, crude oil, petrol, natural gas, and aviation turbine fuel are explicitly kept outside the Goods and Services Tax (GST) framework, leaving individual states free to fix their own fuel sales tax.

Why Diesel Price is Different in States

Many drivers notice that diesel prices jump or drop by several rupees as soon as they cross a state border. The primary driver behind why diesel price is different in states is state tax autonomy, accompanied by logistical transit distances.

State governments rely heavily on fuel tax receipts to fund regional budgets, infrastructure projects, and welfare schemes. Because diesel is widely used in freight logistics, public transport, and agricultural equipment, states adjust their tax rates based on their local fiscal priorities. The variations in diesel tax in india state wise are detailed below:

• Delhi: Levies a VAT of 16.75% along with a dedicated Air Ambience Cess of ₹250 per kilolitre (₹0.25/litre), keeping the capital's rates lower than several adjoining northern states.
• Uttar Pradesh: Balances VAT between 17% and 18%, causing minor price differentials along the Noida-Delhi and Ghaziabad-Delhi borders.
• Maharashtra (Mumbai): Applies higher state VAT and municipal infrastructure surcharges, leading to an elevated pump rate.
• Telangana: Applies a 27% VAT rate on diesel, historically keeping pump rates among the highest in peninsular India.
• Andhra Pradesh: Charges 22.25% ad valorem VAT, accompanied by a specific VAT of ₹4.00 per litre and a ₹1.00 per litre Road Development Cess.
• Goa: Maintains a moderate 17.5% VAT combined with a 0.5% Green Cess, resulting in cheaper fuel than neighbouring Karnataka or Maharashtra.
• Union Territories: Regions such as Andaman & Nicobar Islands and Daman & Diu impose VAT rates as low as 1% to 13.5%, yielding some of the lowest diesel prices in the country.

Logistics also influence retail rates. Fuel pumped through port pipelines to regional depots incurs lower freight overheads than diesel transported by road tankers to high-altitude depots in Shimla, Leh, or remote corners of the North-East.

City Rates: Diesel Price Today in Delhi, UP, Mumbai & Metros

Because state taxes and transit freights vary, the diesel price today in delhi stands lower than the diesel price in mumbai today. In Delhi, lower VAT rates reduce the pump price, whereas Mumbai has higher VAT rates alongside regional infrastructure surcharges.

Motorists checking the diesel price today up will notice that border districts like Noida and Ghaziabad align closely with Delhi, but can still show differences of ₹0.50 to ₹1.50 per litre. Long-haul commercial drivers regularly plan fuel stops around these border price differences.

Before taking highway road trips, vehicle owners should ensure their vehicle documents are fully up to date. You can verify your registration certificate and insurance status instantly using the VahanX RC status checker, or clear any pending traffic fines beforehand through our e-challan status search.

Always verify local pump pricing on official OMC portals, as municipal-level octroi or regional depot transport charges can create slight rate differences even between two cities in the same state.

How to Check Diesel Price by SMS and Mobile Apps

You do not need an active internet connection to track retail diesel prices. Public sector oil marketing companies—Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL)—provide an automated SMS service that returns the daily rate for any outlet. Every retail pump features a 6-digit dealer code on its main price totem board and dispensing unit.

Step-by-Step: How to Check Diesel Price by SMS

1. Locate the dealer code: Check the 6-digit retail outlet code displayed on the pump canopy, nozzle stand, or billing counter.
2. Open your SMS messaging app: Create a new text message on your phone.
3. Format the SMS command for your fuel provider:
   • For Indian Oil (IOCL): Type RSP <Dealer Code> and send it to 92249 92249. (For example, SMS RSP 102090 for New Delhi or RSP 108412 for Mumbai).
   • For Bharat Petroleum (BPCL): Type RSP <Dealer Code> and send it to 9223112222.
   • For Hindustan Petroleum (HPCL): Type HPPRICE <Dealer Code> and send it to 9222201122.
4. Receive the automated price report: The OMC server replies within seconds via SMS, showing the exact petrol and diesel price in effect at that pump for the day.

Tracking via Official Oil Company Mobile Apps

If you prefer an app-based interface with route planning and pump locators, the primary OMCs offer dedicated mobile applications for Android and iOS:

• IndianOil ONE: Developed by IOCL (formerly Fuel@IOC), featuring real-time dealer locators, daily rates across states, and XTRAREWARDS loyalty points.
• Hello BPCL: BPCL's primary retail application (formerly SmartDrive), offering highway fuel stops, digital receipts, and route price estimates.
• HP Pay: HPCL’s mobile wallet and fueling app (formerly My HPCL), supporting contactless payments, digital bills, and daily price queries.
• PPAC Portal: For historical price build-ups and state-by-state tax archives, drivers and transport managers can check the official portal at ppac.gov.in.

Pointers for Commercial Drivers and Vehicle Owners

Fuel expenses represent the single largest variable cost for commercial operators and daily passenger car commuters. Planning where and when you purchase diesel can make a meaningful difference over the course of a year.

• Take advantage of border price differences: If your transit route crosses states with differing VAT rates—such as crossing from Maharashtra into Goa, or from Andhra Pradesh into Karnataka—refuelling inside the lower-tax state can save ₹300 to ₹600 on a single 100-litre commercial tank.
• Inspect fuel bill printouts: Always verify that the price per litre printed on the point-of-sale (POS) charge slip or physical cash memo matches the rate displayed on the automated dispensing unit (DU).
• Mind the 06:00 AM reset window: Automated pumps undergo a system reset between 05:55 AM and 06:05 AM to pull updated pricing batches from the OMC central servers. Avoid refuelling during this brief 10-minute window, as dispensing units often pause transactions to prevent calibration mismatches.
• Monitor automated dispensing safeguards: Over 85% of PSU pumps feature full electronic automation. If the dispensing unit fails to download the revised morning price batch, the pump automatically locks down and ceases dispensing fuel until the correct rate is applied.

Conclusion

Monitoring the diesel price today helps vehicle owners and transport businesses manage running costs in an evolving dynamic pricing market. By tracking daily rates through official SMS services and planning refills around state VAT variations, you can make informed decisions at the fuel pump.

Before setting out on cross-country trips, verify your vehicle documentation, clear any pending traffic notices, and stay updated with live fuel prices across your travel route.