Ahmedabad: Gujarat Fuel Tax Revenue: Various taxes levied on the sale of petrol and diesel in Gujarat continue to be a major source of revenue for the state government. During the financial year 2025-26, the state government earned a total of Rs 21,992 crore from VAT, GST and cess on petrol and diesel.
Details of taxes and levies on petrol and diesel
In Gujarat, petrol attracts 13.7% VAT, while diesel attracts 14.9% VAT, along with an additional 4% cess on both fuels. During the financial year 2025-26, the state government earned Rs 4,423 crore from VAT on petrol, while CST on petrol brought in Rs 1,040 crore and cess contributed Rs 1,328 crore.
Diesel emerges as the main source of revenue
Diesel is proving to be an even bigger source of revenue for the state government. VAT on diesel brought in Rs 8,675 crore, CST contributed Rs 2,427 crore, and cess added Rs 3,099 crore to government coffers. Of the total revenue earned by the government, diesel accounted for 69.10% while petrol’s share stood at 30.90%. According to these figures, the Gujarat government earns an average of Rs 60.25 crore per day from taxes on petrol and diesel alone.
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