Why LPG prices are lower in Maharashtra but skyrocket in Manipur?

Western and northern states have lower oil prices due to infrastructure; northeastern and island regions face higher costs.

average lpg price in india
RankRegion NameValue (₹)
1Maharashtra912
2Goa912
3Delhi913
4Gujarat920
5Haryana916
6Rajasthan916
7Madhya Pradesh918
8Chandigarh863
9Karnataka916
10Kerala922
11Tamil Nadu929
12Andhra Pradesh930
13Telangana965
14Punjab964
15Uttarakhand941
16Himachal Pradesh958
17Uttar Pradesh950
18Odisha955
19Jharkhand970
20West Bengal985
21Bihar996
22Andaman and Nicobar Islands999
23Chhattisgarh950
24Assam970
25Meghalaya919
26Arunachal Pradesh978
27Nagaland980
28Tripura980
29Sikkim1065
30Manipur1066
31Mizoram1065
32Jammu and Kashmir950
33Ladakh958
34Puducherry929
35Lakshadweep1000
36DNHDD920

Western and northern core states lead the rankings due to their proximity to major refineries and bottling facilities, which helps reduce freight costs that oil marketing companies directly pass on to consumers.

Maharashtra and Goa are at the forefront with prices at ₹912, followed closely by Delhi at ₹913, while Gujarat, Haryana, and Rajasthan remain below ₹920.

These areas benefit from extensive pipeline networks and short-haul transport, which keep distribution costs low.

High-ranking regions sometimes trade off higher state VAT for the benefits of dense infrastructure, accepting manageable fiscal burdens in return for consistently low landed costs.

In contrast, northeastern states are at the bottom of the rankings, with Manipur at ₹1066, and Mizoram and Sikkim at ₹1065.

Their remote locations necessitate long-distance trucking across challenging terrain, leading to cost increases of 15-20% compared to their western counterparts.

Island territories experience similar issues: Andaman and Nicobar are around ₹999, while Lakshadweep approaches ₹1000. These regions are constrained by sea freight challenges and limited bottling capacity, resulting in persistently higher prices.

Bihar at ₹996 and West Bengal at ₹985 demonstrate how dense populations complicate last-mile delivery even in flat areas, exacerbating minor transport costs.

A surprising ranking has emerged in Meghalaya, with prices around ₹919, which is better than anticipated for the northeast.

Local bottling agreements and reduced state taxes help mitigate the effects of remoteness, but these benefits are tenuous and do not extend to neighboring states such as Manipur or Mizoram.

Regions with high rankings face a distinct trade-off: substantial investment in infrastructure secures low prices but links future affordability to the expansion of central refineries.

If global supply disruptions persist, these states may experience greater volatility due to their reliance on imports, despite their logistical advantages.

Conversely, lower-ranked regions struggle with ongoing structural challenges. Poor road connectivity and a lack of bottling facilities lead to persistent cost premiums that policy measures seldom fully alleviate.

If current trends continue, households in the northeast and on islands may face widening access disparities, potentially undoing the benefits of Ujjwala as rising refill costs diminish subsidy advantages.

Western and northern regions are likely to retain their leading positions unless there is a concerted effort to decentralize bottling infrastructure.

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