Hyderabad: When motorists in Hyderabad pay Rs 115.68 for a litre of petrol, only about Rs 82 of that amount goes towards the fuel itself, while the rest is collected as taxes and dealer commissions, according to information disclosed by Hindustan Petroleum Corporation Ltd. (HPCL) under the Right to Information (RTI) Act.
The disclosure, made in response to RTI applications filed by Robin Zaccheus, provides a detailed breakdown of petrol and diesel prices and offers a rare glimpse into how fuel prices are structured.
The information was disclosed by HPCL in response to a series of RTI applications filed by Hyderabad-based activist Robin Zaccheus.
According to the disclosure, the largest share of the retail price goes towards the amount charged by oil marketing companies to dealers. In Hyderabad, this component accounts for Rs 82.14 of the Rs 115.68 paid for a litre of petrol, or nearly 71 per cent of the pump price.
The second-largest component is state tax. The RTI response shows that taxes imposed by the Telangana government account for Rs 28.99 per litre of petrol, representing about 25 per cent of the retail selling price. Dealer commissions make up the remaining Rs 4.57 per litre, or roughly 4 per cent.
In simple terms, for every Rs 100 spent on petrol in Hyderabad, around Rs 71 goes towards the base fuel price charged to dealers, Rs 25 goes to the state government in taxes and about Rs 4 goes to fuel station dealers as commission.
A similar pattern is seen in diesel prices. Of the Rs 103.81 paid for a litre of diesel in Hyderabad, Rs 79.28 goes towards the dealer price, Rs 21.46 is collected as state tax, and Rs 3.06 is paid as dealer commission. This means that for every Rs 100 spent on diesel, approximately Rs 76 goes towards the fuel, Rs 21 goes to the state government and Rs 3 goes to dealers.
The RTI response also notes that central excise duties are levied separately by the Union government and form part of the price charged to dealers before state taxes are added. HPCL said retail fuel prices are determined based on international petroleum product prices, exchange rate movements and domestic market conditions, including duties and taxes.
The figures highlight the significant role played by taxation in determining what consumers ultimately pay at the pump. In Hyderabad, state taxes alone account for nearly one-fourth of the price of petrol and more than one-fifth of the price of diesel.
HPCL issued the information in response to RTI applications seeking details on fuel pricing, taxes and duties. However, the company declined to disclose additional pricing information, stating that further details were commercially sensitive and exempt from disclosure under the RTI Act.
This post was last modified on June 5, 2026 1:33 pm