Highest VAT on petrol in MP, diesel in Rajasthan, says Hardeep Singh Puri Madhya Pradesh levies Rs 31.55 a litre VAT on petrol - the highest in the country, while Rajasthan charges Rs 21.82 a litre on diesel, according to Puri's reply Union Oil Minister Hardeep Singh Puri PTI Updated Jul 27, 2021, 8:24 AM IST Madhya Pradesh levies the highest sales tax or VAT on petrol in the country, while Rajasthan has the highest tax on diesel, Oil Minister Hardeep Singh Puri told the Lok Sabha on Monday. Heavily taxed petrol and diesel rates have shot to their highest prices this month. Taxes, both central and state, make up for 55 per cent of the retail price of petrol and 50 per cent of diesel rates.