State governments collect even more tax from petrol and diesel irrespective of whether ruled by UPA or NDA or Left parties. Same parties make a show of protest when central government increases duties but keep quiet about what their state governments are doing.
There is no subsidy to people on petrol, diesel, LPG or kerosene. People are paying more and more every year so that oil companies can make more profit and government can give more tax rebates to the rich.
This presentation takes on the question of who subsidizes petroleum, the government or the people. To view the Presentation, download the attachment.