As of August 2, 2025, petrol prices throughout the states and Union Territories (UTs) of India illustrate a compelling narrative of economic and policy-induced disparities.
Ranging from the unspoiled beaches of the Andaman and Nicobar Islands to the vibrant urban centers of Andhra Pradesh, fuel prices differ markedly, affecting commuters, businesses, and the overall economy.
This article utilizes data from an extensive table of petrol prices to examine essential facts, captivating insights, and the factors contributing to the pronounced variations in fuel costs across India.
Petrol Price in every Indian state 2025
| State/Union Territory | Petrol Price (₹/Litre) |
|---|---|
| Andaman and Nicobar Islands | 82.46 |
| Andhra Pradesh | 109.57 |
| Arunachal Pradesh | 92.51 |
| Assam | 96.47 |
| Bihar | 105.18 |
| Chandigarh | 94.72 |
| Chhattisgarh | 100.29 |
| Dadra and Nagar Haveli and Daman and Diu | 92.51 |
| Delhi | 94.72 |
| Goa | 96.47 |
| Gujarat | 94.53 |
| Haryana | 95.19 |
| Himachal Pradesh | 94.51 |
| Jammu and Kashmir | 99.12 |
| Jharkhand | 97.81 |
| Karnataka | 99.84 |
| Kerala | 105.72 |
| Ladakh | 99.12 |
| Lakshadweep | 82.46 |
| Madhya Pradesh | 104.27 |
| Maharashtra | 103.50 |
| Manipur | 99.04 |
| Meghalaya | 96.47 |
| Mizoram | 93.93 |
| Nagaland | 96.47 |
| Odisha | 100.92 |
| Puducherry | 94.03 |
| Punjab | 96.47 |
| Rajasthan | 104.88 |
| Sikkim | 96.47 |
| Tamil Nadu | 100.75 |
| Telangana | 107.41 |
| Tripura | 96.47 |
| Uttar Pradesh | 94.72 |
| Uttarakhand | 94.72 |
| West Bengal | 103.94 |
Key Insights on Petrol Pricing in India
Price Spectrum: Petrol prices vary from a minimum of ₹82.46 per litre in the Andaman and Nicobar Islands and Lakshadweep to a maximum of ₹109.57 per litre in Andhra Pradesh.
National Average: The mean petrol price across the 36 listed states and Union Territories is roughly ₹97.69 per litre, indicating a compromise between regions with high and low taxes.
Least Expensive Areas: The Andaman and Nicobar Islands, Lakshadweep, Puducherry (₹94.03), Delhi (₹94.72), Chandigarh (₹94.72), and Uttarakhand (₹94.72) present the most affordable petrol prices, all below ₹95 per litre.
Highest Priced Areas: Andhra Pradesh (₹109.57), Telangana (₹107.41), Kerala (₹105.72), Bihar (₹105.18), Rajasthan (₹104.88), and Madhya Pradesh (₹104.27) feature prices surpassing ₹104 per litre.
Daily Price Adjustments: Since June 2017, India’s flexible pricing system modifies fuel prices every day at 6 AM, influenced by global crude oil rates, currency exchange rates, and local conditions.
Interesting Insights
Geographical Concentration of Low Prices: Union Territories such as Andaman and Nicobar, Lakshadweep, Puducherry, and Chandigarh consistently exhibit lower petrol prices.
This is particularly noteworthy given the geographical diversity of these areas—from remote islands to urban centers—yet they all benefit from low-tax policies.
Elevated Prices in Southern States: The southern states, including Andhra Pradesh, Telangana, Kerala, and Tamil Nadu (₹100.75), rank among the highest for petrol prices. This stands in contrast to the common perception of southern India as economically advanced, emphasizing the influence of state-level taxation.
Consistency in Certain Areas: States like Assam, Goa, Meghalaya, Nagaland, Sikkim, and Tripura maintain uniform petrol prices (₹96.47).
This indicates the presence of similar tax frameworks or coordinated policies among these states, many of which are located in the Northeast.
Rajasthan’s Distinct Position: Rajasthan is notable for its petrol price of ₹104.88, which is considerably higher than that of neighboring states such as Gujarat (₹94.53) and Haryana (₹95.19).
This highlights the significance of state-specific policies in creating price variations.
Delhi’s Competitive Advantage: As a prominent metropolitan area, Delhi’s petrol price of ₹94.72 is unexpectedly low, especially when compared to Mumbai (₹104.21) or Kolkata (₹103.94).
This situation reflects Delhi’s moderate VAT rate and its strategic significance as the capital.
Why Do Petrol Prices Vary Across States?
Petrol prices in India are influenced by a mix of global and local factors, with state-level policies playing a pivotal role. Here’s a breakdown of why some states have expensive petrol while others are more affordable:
1. State-Level Value Added Tax (VAT)
Primary Driver: The most significant factor behind price variations is the VAT imposed by state governments. Unlike the central excise duty (₹19.90 per litre for petrol), which is uniform nationwide, VAT rates vary widely.
For instance, Andhra Pradesh levies a high VAT of 31% plus additional cesses, pushing prices to ₹109.57 per litre. In contrast, Andaman and Nicobar Islands and Lakshadweep have minimal or no VAT, resulting in prices as low as ₹82.46.
Examples: Rajasthan’s VAT exceeds 30%, contributing to its high price of ₹104.88. Maharashtra applies a 26% VAT in Mumbai plus a ₹5.12 per litre surcharge, making it one of the costlier states at ₹103.50. Meanwhile, Delhi’s VAT of 19.4% keeps prices lower at ₹94.72.
2. Transportation and Logistics Costs
Geographical Impact: States farther from oil refineries or depots incur higher transportation costs, which inflate retail prices.
For example, Andhra Pradesh and Telangana, despite being coastal, face higher logistics costs due to their distance from major refineries compared to Gujarat, which hosts significant refining capacity and enjoys lower prices (₹94.53).
Island Advantage: Remote UTs like Andaman and Nicobar and Lakshadweep benefit from subsidized transport or lower demand, keeping costs down despite their isolation.
3. Local Regulations and Policies
Cess and Surcharges: Certain states impose extra charges, such as road development cess or environmental fees, which lead to increased prices.
For example, Andhra Pradesh levies a ₹4 per litre VAT along with a ₹1 per litre road development cess, which considerably raises costs.
Policy Choices: Regions like Goa and Puducherry maintain lower VAT rates to enhance tourism and stimulate local economies, resulting in prices of ₹96.47 and ₹94.03, respectively.
In contrast, states such as Kerala and Tamil Nadu, which have higher VAT and cess, focus on revenue generation rather than consumer relief.
4. Global Crude Oil Prices and Exchange Rates
Uniform Impact: The global crude oil prices and the rupee-dollar exchange rate influence all states uniformly, as India imports 80% of its oil. Nevertheless, states with elevated VAT rates magnify the effects of crude price increases.
For instance, a depreciated rupee raises import expenses, which is further intensified by Andhra Pradesh’s high VAT in comparison to Delhi’s moderate VAT.
Ethanol Blending: Since 2017, petrol in India has been blended with 10% ethanol, which is less expensive and slightly lowers costs. However, this advantage is consistent across the board and does not account for variations among states.
5. Demand and Supply Dynamics
Regional Demand: States with a higher density of vehicles, such as Maharashtra or Karnataka, may experience upward pressure on prices due to demand.
However, this factor is less impactful than taxation, as evidenced by Delhi’s low prices despite high demand.
Dealer Commissions: Set at 3.9% for petrol, dealer commissions introduce a minor, uniform cost (₹3-4 per litre) but do not significantly affect state-wise differences.
Why Certain States Are Costly While Others Remain Affordable
Costly States (e.g., Andhra Pradesh, Telangana, Rajasthan): Elevated VAT rates (frequently surpassing 30%), supplementary cesses, and a dependence on fuel taxes for state income contribute to increased prices.
These states typically prioritize fiscal requirements over consumer relief, particularly in the aftermath of COVID, when revenues were under pressure.
Affordable States (e.g., Andaman and Nicobar, Lakshadweep, Delhi): Reduced or nonexistent VAT, minimal additional charges, and strategic initiatives (e.g., promoting tourism or enhancing urban competitiveness) help maintain lower prices.
Union Territories, with limited budgets, often depend less on fuel taxes, allowing for reduced rates.
Wider Consequences
The disparity in petrol prices has extensive repercussions:
Economic Consequences: Elevated prices in states such as Andhra Pradesh and Kerala escalate transportation expenses, contributing to inflation and increasing the cost of goods and services.
Consumer Impact: States with a high number of two-wheelers, like Rajasthan, experience considerable effects, as 60% of India’s petrol demand is generated by two-wheelers, impacting daily commuters.
Policy Discussions: The central government and states frequently disagree over tax reductions, with states like Maharashtra and Telangana opposing VAT cuts due to revenue necessities, while the central government’s excise duty continues to impose a significant burden.
Conclusion
The petrol pricing structure in India is influenced by a myriad of factors including taxation, logistics, and governmental policies.
While regions such as the Andaman and Nicobar Islands and Lakshadweep enjoy lower prices at approximately ₹82.46, states like Andhra Pradesh and Telangana face significantly higher costs due to elevated VAT and cesses, resulting in prices exceeding ₹107.
Gaining insight into these discrepancies enables consumers to better manage fuel expenses and underscores the necessity for equitable tax regulations to alleviate the financial strain on the general populace.
You must be logged in to post a comment.