2025 Diesel Prices Across India: A Comprehensive Overview
Find out which Indian states have the highest diesel prices in 2025. Get the latest rankings and data on fuel costs here.
As of August 2, 2025, diesel prices throughout India’s 36 states and Union Territories (UTs) present a fascinating narrative of economic policies, geographical influences, and regional inequalities.
From the economical fuel stations in the Andaman and Nicobar Islands to the expensive outlets in Andhra Pradesh, diesel prices significantly impact transportation, agriculture, and industrial expenses.
Utilizing the ranked diesel price table, this article emphasizes essential facts, captivating insights, and the explanations for the disparity in diesel prices, where some states endure high costs while others benefit from lower prices.
Diesel Price in Every Indian State in 2025
| Rank | State/Union Territory | Diesel Price (₹/Litre) |
|---|---|---|
| 1 | Andhra Pradesh | 97.39 |
| 2 | Telangana | 95.65 |
| 3 | Kerala | 94.00 |
| 4 | Tamil Nadu | 93.37 |
| 5 | Bihar | 92.87 |
| 6 | Maharashtra | 92.15 |
| 7 | Odisha | 92.00 |
| 8 | Jharkhand | 92.00 |
| 9 | West Bengal | 91.67 |
| 10 | Madhya Pradesh | 91.50 |
| 11 | Rajasthan | 90.36 |
| 12 | Assam | 88.97 |
| 13 | Goa | 88.97 |
| 14 | Gujarat | 88.97 |
| 15 | Meghalaya | 88.97 |
| 16 | Nagaland | 88.97 |
| 17 | Sikkim | 88.97 |
| 18 | Tripura | 88.97 |
| 19 | Haryana | 88.40 |
| 20 | Uttar Pradesh | 87.76 |
| 21 | Uttarakhand | 87.76 |
| 22 | Delhi | 87.62 |
| 23 | Punjab | 87.50 |
| 24 | Jammu and Kashmir | 87.00 |
| 25 | Ladakh | 87.00 |
| 26 | Chhattisgarh | 86.31 |
| 27 | Karnataka | 86.28 |
| 28 | Manipur | 85.50 |
| 29 | Dadra and Nagar Haveli and Daman and Diu | 85.00 |
| 30 | Himachal Pradesh | 85.00 |
| 31 | Puducherry | 84.00 |
| 32 | Chandigarh | 82.83 |
| 33 | Mizoram | 81.31 |
| 34 | Arunachal Pradesh | 80.16 |
| 35 | Andaman and Nicobar Islands | 78.05 |
| 36 | Lakshadweep | 78.05 |
Key Information Regarding Diesel Prices in India
Price Range: Diesel prices range from ₹78.05 per litre in the Andaman and Nicobar Islands and Lakshadweep to ₹97.39 per litre in Andhra Pradesh, resulting in a difference of ₹19.34.
National Average: The average diesel price across the 36 states and Union Territories is roughly ₹89.35 per litre, which is lower than the petrol average of ₹97.69, indicating the impact of lower taxation and demand factors on diesel pricing.
Cheapest Regions: The Andaman and Nicobar Islands (₹78.05), Lakshadweep (₹78.05), Arunachal Pradesh (₹80.16), Mizoram (₹81.31), and Chandigarh (₹82.83) provide diesel at prices below ₹83 per litre.
Most Expensive Regions: Andhra Pradesh (₹97.39), Telangana (₹95.65), Kerala (₹94.00), Tamil Nadu (₹93.37), and Bihar (₹92.87) are the highest priced regions, with diesel costs exceeding ₹92 per litre.
Dynamic Pricing: Since June 2017, India has implemented a daily revision of fuel prices at 6 AM, linking diesel prices to global crude oil rates, currency exchange rates, and local taxation.
Interesting Insights
Union Territories Excel in Affordability: Union Territories such as the Andaman and Nicobar Islands, Lakshadweep, Puducherry (₹84.00), and Chandigarh are among the most economical, showcasing low VAT and subsidized logistics, despite their varied geographical landscapes.
Southern States Incur Higher Expenses: The southern states are prominent in the high-cost category, with Andhra Pradesh, Telangana, Kerala, and Tamil Nadu occupying the top four positions. This is in stark contrast to their economic dynamism, which underscores significant tax liabilities.
Northeastern Price Consistency: Assam, Goa, Meghalaya, Nagaland, Sikkim, and Tripura exhibit uniform diesel pricing (₹88.97, ranks 12–18), indicating either harmonized tax regulations or common logistics in these areas.
Rajasthan’s Elevated Position: Although classified as a northern state, Rajasthan (₹90.36, rank 11) has higher diesel prices compared to neighboring states like Haryana (₹88.40, rank 19) and Gujarat (₹88.97, rank 14), primarily due to its elevated VAT rate.
Delhi’s Competitive Rates: The diesel price in Delhi stands at ₹87.62 (rank 22), which is significantly lower than that of other metropolitan areas such as Mumbai (Maharashtra, ₹92.15, rank 6) or Kolkata (West Bengal, ₹91.67, rank 9), reflecting the moderate tax regime in the capital.
Why Do Diesel Prices Differ Among States?
The variations in diesel prices arise from a combination of state regulations, logistical challenges, and economic conditions. Below are the primary factors, based on an analysis of India’s fuel pricing framework and state-specific statistics:
State-Level Value Added Tax (VAT)
Key Factor: The VAT imposed by states is the main contributor to price discrepancies. In Andhra Pradesh, the elevated VAT (~28% + ₹4/litre cess) drives diesel prices up to ₹97.39, whereas Telangana’s VAT of approximately 27% results in a price of ₹95.65.
In contrast, Union Territories such as the Andaman and Nicobar Islands and Lakshadweep impose little to no VAT, maintaining prices at ₹78.05.
Illustrations: Kerala’s VAT of around 25% along with additional cesses leads to a price of ₹94.00, while Delhi’s lower VAT of about 17% results in a price of ₹87.62.
The high VAT in Rajasthan, approximately 26%, accounts for its diesel price of ₹90.36, compared to Gujarat’s lower VAT of around 15%, which results in a price of ₹88.97.
Transportation and Logistics Costs
Geographical Impact: States that are located further from refineries experience increased transportation costs, which elevate prices.
Despite having coastal access, Andhra Pradesh and Telangana face higher logistics expenses than Gujarat, a refining center where prices are at ₹88.97.
Island Benefit: Remote Union Territories such as Andaman and Lakshadweep enjoy subsidized transportation or reduced demand, allowing them to keep diesel prices low despite their geographical isolation.
Local Policies and Cess
Additional Charges: States like Andhra Pradesh and Tamil Nadu impose supplementary cesses (for example, road development or environmental fees), which raise prices.
For example, Andhra Pradesh adds a cess of ₹4/litre, which contributes to its leading position in pricing.
Policy Focus: Union Territories such as Puducherry and Chandigarh maintain lower VAT rates to bolster tourism or urban economies, resulting in prices of ₹84.00 and ₹82.83, respectively.
Conversely, states like Kerala focus on revenue generation, leading to elevated prices.
Global Crude Oil and Exchange Rates
Uniform Impact: The prices of global crude oil and the rupee-dollar exchange rate have a uniform effect on all states, given that India imports approximately 80% of its oil.
Nevertheless, states with high VAT rates experience an intensified effect from fluctuations in crude prices.
For instance, a depreciated rupee raises import expenses, which are further aggravated by the elevated taxes in Andhra Pradesh compared to the more moderate tax rates in Delhi.
Ethanol Blending: Unlike petrol, which mandates a 10% ethanol blend, diesel does not have such a requirement, leading states to depend entirely on the base fuel costs, which are modified by taxes.
Demand and Supply Dynamics
Regional Demand: States exhibiting high diesel consumption (such as Maharashtra for industrial use and Bihar for agricultural purposes) encounter slight upward pressure on prices; however, taxation remains the primary influencing factor.
The low price in Delhi, despite its high demand, highlights the significant role of VAT.
Dealer Commissions: Set at approximately 3.9% (₹2–3/litre), dealer commissions are standardized and exert minimal influence on variations between states.
Why Some States Are Expensive and Others Cheap
Expensive States (for example, Andhra Pradesh, Telangana, Kerala): Elevated VAT rates (ranging from 25% to 31%), additional cesses, and a heavy reliance on fuel taxes for revenue contribute to higher prices.
These states frequently prioritize fiscal recovery, particularly following economic setbacks such as COVID, over providing relief to consumers.
Cheap States (such as Andaman and Nicobar, Lakshadweep, Chandigarh): With minimal or no VAT, subsidized logistics, and a lower dependence on fuel taxes for revenue, these states maintain lower prices.
Union Territories, with their limited budgets, often opt to minimize fuel taxation to bolster local economies or promote tourism.
Broader Implications
Fluctuations in diesel prices have a profound effect on the economy of India:
Transport and Agriculture: Elevated prices in regions such as Andhra Pradesh and Bihar escalate expenses for trucking and farming, which are significant consumers of diesel, consequently driving up the prices of goods and food.
Consumer Impact: Rural communities in states with high prices endure a greater strain, as diesel fuels agricultural machinery and public transportation.
Policy Tensions: States are hesitant to lower VAT due to their revenue requirements, while the Centre’s excise duty (₹15.80/litre for diesel) imposes a consistent burden, igniting discussions on tax reform.
Conclusion
The landscape of diesel pricing in India illustrates a complicated relationship between taxation, logistics, and regional interests.
The price of ₹97.39 in Andhra Pradesh highlights the impact of high VAT, whereas the ₹78.05 in Andaman and Lakshadweep showcases the advantages of lower taxes.
These variations influence everything from everyday travel to industrial productivity, prompting policymakers to find a balance between revenue generation and consumer support.
