Petrol and diesel prices vary across India due to state VAT. Andhra Pradesh has the highest rates, Andaman & Nicobar the lowest. Check latest rates today.

According to data presented to the Rajya Sabha, smaller states and Union Territories, such the Andaman & Nicobar Islands, have the lowest fuel prices, while Andhra Pradesh has the highest rates for gasoline and diesel, primarily due to the state’s highest VAT.

In a written response to a query about gasoline price differences, Minister of State for Petroleum and Natural Gas Suresh Gopi stated that a liter of petrol costs Rs 109.74 in Amaravati, the capital of Andhra Pradesh, while it costs Rs 82.46 in the Andaman & Nicobar Islands.

“The final selling prices of petrol and diesel include excise duty fixed by the Central Government and Value Added Tax (VAT)/Taxes fixed by the respective State/UT Governments,” he stated, noting that the rates differ nationwide as a result of state-by-state variations in freight rates and VAT/local levies.

While the Andaman & Nicobar Islands only charge Rs 0.82 per litre for petrol, NDA-ruled Andhra Pradesh has the highest VAT at Rs 29.06 per litre.

The national government charges an excise fee of Rs 21.90 per litre, which is topped off by the VAT.

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In Andhra Pradesh, diesel is priced at Rs 97.57 a litre after VAT of Rs 21.56 per litre. Due to the lowest VAT (Rs 0.77 per litre), the fuel price in the Andaman and Nicobar Islands is Rs 78.05 per litre.

Kerala, which is ruled by the Left Democratic Front and has a petrol price of Rs 107.48 a litre, is keeping Andhra Pradesh company. Telangana, which is governed by the Congress, is not far behind, with petrol costs Rs 107.46 per litre.

Several BJP-ruled states also have high gas costs, such as Bhopal, the capital of Madhya Pradesh, at Rs 106.52 per litre; Patna, where the BJP rules in alliance with JD(U), at Rs 105.23; Jaipur, Rajasthan, at Rs 104.72; and Mumbai, at Rs 103.54 per litre. In Kolkata, petrol costs Rs 105.41 a litre in West Bengal, which is ruled by the Trinamool Congress.

Due to its reduced taxes, Delhi consistently had the cheapest fuel among the metro areas. Due to the Rs 15.40 per litre VAT, petrol costs Rs 94.77 per litre.

According to the response, other states with petrol prices above Rs 100 per litre include Tamil Nadu (Rs 100.80 in Chennai), Karnataka (Rs 102.92 in Bengaluru), Odisha (Rs 101.11 per litre in Bhubaneswar), and Jammu & Kashmir (Rs 100.71 in Srinagar).

On the other hand, gasoline costs Rs 92.44 a litre in Daman. Gas prices are also lower in smaller states and union territories (UTs) with lower VAT rates, such as Chandigarh (Rs 94.30) and Panaji (Rs 96.43).

Prices for diesel exhibit a similar pattern. Diesel prices in Andhra Pradesh are Rs 97.57 per litre in Amaravati, Rs 96.48 in Thiruvananthapuram, Rs 95.70 in Hyderabad, and Rs 93.39 in Raipur.

In BJP-ruled Bihar and Odisha, diesel costs between Rs 91 and Rs 93 a litre. At Rs 78.05 per litre, the fuel is the most affordable in the Andaman and Nicobar Islands. Diesel costs Rs 87.67 per litre in Delhi, which has the lowest VAT of any metropolis, and Rs 87.81 per litre in Goa.

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According to Gopi, the central government lowered the excise tax on gasoline and diesel by a total of Rs 13 and Rs 16 per litre, respectively, in two installments in November 2021 and May 2022. These reductions were entirely passed on to customers.

This reversed a comparable excise fee hike during the COVID-19 pandemic.

Oil marketing firms lowered the retail prices of gasoline and diesel by Rs 2 per litre in March 2024. “In April 2025, excise duty on petrol and diesel was increased by Rs 2 per litre each, but this was not passed on to consumers,” he stated.