Petrol and Diesel Prices: Where is it Cheapest and the Costliest?

New Delhi: Even though the price of petrol and diesel has been rapidly escalating, the ground prices vary from one city to another because of differences in local sales tax or VAT and transportation cost.

While the rate of per litre of petrol recorded to be the most expensive in Maharashtra, diesel is costliest in Hyderabad. But interesting, the prices of both petrol and diesel are the cheapest in the Andaman and Nicobar islands.

Let us check out which cities of India are paying more or less for the essentially required petrol and diesel.

Across all states and Union Territories, the price of petrol is the highest in Maharashtra and the lowest in the Andaman and Nicobar islands. Diesel vehicle owners pay the most for fuel in Hyderabad at Rs 79.73 for a litre of diesel.

But if you are lucky wnough to stay in Port Blair, you will be paying only Rs 69.97 for a litre of petrol but the same fuel will burn a hole to the pocket for the people of Maharashtra as you have to shell Rs 90.45 in Maharashtra’s Parbhani. It is a major difference of Rs 20.

The reason being, the state of Maharashtra has double VAT slabs. Petrol pumps in Mumbai, Thane and Navi Mumbai have to shell out a VAT of 39.12%, a percentage point less than the rest of Maharashtra.

Reports say that out of all state capitals, Mumbai pays the highest price for petrol—Rs 88.67, followed by Patna Rs 87.46 and Bhopal Rs 87.03.

Top 3 cities where Petrol Rates are Cheaper:

In India, Delhi has the lowest fuel rates—Rs 81.28 for petrol, Rs 73.30 for diesel.

Price Check: Diesel Costs Across India

Telangana levies the highest VAT on diesel at 26.01%.

Resultantly, due to high VAT rates levied, Hyderabad ends up paying the highest price for diesel—Rs 79.73. Chhattisgarh, Gujarat, Telangana, Kerala are amongst the other states where diesel is the most expensive.

Andhra Pradesh had the highest VAT on diesel at 28.08% until the state government reduced the VAT by Rs 2.

Where is Diesel the cheapest?

According to recent survey, amongst all other cities of India, Andaman and Nicobar islands are the most feasible destination to own a vehicle if petrol/diesel cost is taken into account. The Union Territory levies only 6% VAT on both fuels, which makes it the cheapest in whole of the country.

The price of fuel remarkably hits a double fold while on its journey from the refinery gate and vehicle tank mostly due to central excise duty, state sales tax or VAT, transportation cost and dealer commission.