Petrol, diesel costliest in Andhra Pradesh; lowest rates in Andaman & Nicobar

Petrol and diesel are costliest in Andhra Pradesh largely because the state imposes the highest VAT, while smaller states and Union Territories such as the Andaman & Nicobar Islands have the lowest fuel prices, according to information tabled in the Rajya Sabha on Monday (December 15).

Petrol VAT differs across states

A litre of petrol in Amaravati — the capital of Andhra Pradesh — costs Rs 109.74, whereas in the Andaman & Nicobar Islands it is priced at Rs 82.46, Minister of State for Petroleum and Natural Gas Suresh Gopi said in a written reply to a question on disparities in fuel prices.

“The final selling prices of petrol and diesel include excise duty fixed by the Central Government and VAT/taxes determined by the respective State/UT Governments,” he explained, adding that the rates differ nationwide due to varying freight charges and VAT/local levies, across different states.

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Andhra Pradesh charges the highest VAT of Rs 29.06 per litre on petrol, while the same in Andaman & Nicobar Islands is just Rs 0.82 per litre.

The VAT is levied on top of Rs 21.90 a litre charged by the central government as excise duty.

Differing fuel prices

Similarly, diesel in Andhra Pradesh is priced at Rs 97.57 per litre after accounting for Rs 21.56 a litre VAT. The rate for the fuel in Andaman & Nicobar Islands is Rs 78.05 per litre, as the VAT is the least (Rs 0.77 per litre).

Keeping Andhra Pradesh company is Left Democratic Front-ruled Kerala, where petrol is at Rs 107.48 per litre. Congress-ruled Telangana ranks close behind, with petrol priced at Rs 107.46 per litre.

Petrol prices are also high in several BJP-ruled states, including Madhya Pradesh's capital Bhopal at Rs 106.52 per litre, Patna at Rs 105.23 (where the BJP governs in coalition with JD(U)), Jaipur in Rajasthan at Rs 104.72, and Mumbai at Rs 103.54 per litre. In Trinamool Congress-ruled West Bengal, petrol costs Rs 105.41 per litre in Kolkata.

Cheaper petrol in UTs

Among the metros, Delhi always had the cheapest fuel as it levied lower taxes. Petrol is priced at Rs 94.77 a litre as it levies Rs 15.40 per litre VAT.

Other states where petrol prices exceed Rs 100 per litre include Odisha (Rs 101.11 per litre in Bhubaneswar), Karnataka (Rs 102.92 in Bengaluru), Tamil Nadu (Rs 100.80 in Chennai) and Jammu & Kashmir (Rs 100.71 in Srinagar), according to the reply.

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In contrast, petrol is cheaper in Daman at Rs 92.44 per litre. Smaller states and UTs with lower VAT rates also record cheaper petrol prices, including Panaji (Rs 96.43) and Chandigarh (Rs 94.30).

Diesel prices show a similar trend. Amaravati in Andhra Pradesh sells diesel at Rs 97.57 per litre, followed by Thiruvananthapuram in Kerala at Rs 96.48, Hyderabad at Rs 95.70 and Raipur at Rs 93.39 per litre.

Diesel prices are in the Rs 91–93 per litre range in BJP-ruled Bihar and Odisha. The fuel is cheapest in the Andaman & Nicobar Islands at Rs 78.05 per litre. Delhi, which has the lowest VAT among metro cities, sells diesel at Rs 87.67 per litre, while Goa's price stands at Rs 87.81 per litre.

COVID-era excise duty hikes rolled back

Gopi said the Central excise duty was reduced by the central government by a total of Rs 13 per litre and Rs 16 per litre on petrol and diesel, respectively, in two tranches in November 2021 and May 2022, which was fully passed on to consumers.

Also Read: How a Rs 2 hike in excise duty on petrol and diesel may impact you

This rolled back a similar measure of excise duty increase during the COVID-19 wave.

In March 2024, oil marketing companies reduced the retail prices of petrol and diesel by Rs 2 per litre each. "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 said.