Prices is calculated like this for petrol and diesel in India
Crude Oil (Indian Basket) + Refining Cost + Central Excise Duty + Dealer's Commision + VAT (collected by State Government) = Petrol Price (in your city)
Example if
Petrol Price (Indian Basket) = ₹32.39
Refining Cost = ₹5.93
Central Excise Duty = ₹19.48
Dealer's Commision = ₹3.62
till here the price is now fixed before entering into state i.e. Total = ₹61.42
1 — VAT (eg Delhi is 27%) = ₹61.42 × 0.27 = ₹16.58
Pollution Cess = ₹0.25
Then Petrol Price in Delhi becomes = ₹78.25/L