New Delhi: Prices of petrol and diesel, which are now at all-time record highs, vary from one city to another because of differences in local sales tax or VAT and transportation cost. 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.
If you are in Port Blair you will be paying only Rs 69.97 for a litre of petrol but the same fuel will make you poorer by Rs 90.45 in Maharashtra’s Parbhani—a stark difference of Rs 20. Maharashtra has two 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 the state.
If all state capitals are taken into account, then Mumbai pays the highest price for petrol—Rs 88.67, followed by Patna Rs 87.46 and Bhopal Rs 87.03.
Top 3 cities with cheapest petrol rates:
Port Blair Rs 69.97
Panjim Rs 74.97
Agartala Rs 79.71
Among all major cities of India, Delhi has the lowest fuel rates—Rs 81.28 for petrol, Rs 73.30 for diesel.
Prices of diesel across India
In a state if the VAT on petrol is high it does not mean that the VAT on diesel will also be high. Telangana levies the highest VAT on diesel at 26.01%.
As a result, Hyderabad fetches the highest price for diesel—Rs 79.73. Chhattisgarh, Gujarat, Telangana, Kerala are other states where diesel is the most expensive. Diesel costs Rs 78.81 a litre in Amaravati, Rs 78.47 in Thiruvananthapuram, Rs 79.12 in Raipur and Rs 78.66 in Ahmedabad.
Andhra Pradesh had the highest VAT on diesel at 28.08% until the state government reduced the VAT by Rs 2.
Top 3 cities with cheapest diesel prices:
Port Blair Rs 68.58
Itanagar Rs 70.44
Aizawl Rs 70.53
The Andaman and Nicobar islands are the best place to own a vehicle if petrol/diesel cost is taken into account. The Union Territory levies only 6% VAT on both fuels, making it the cheapest across India.
What does petrol, diesel retail price comprise of
Between refinery gate and your vehicle tank, the price of fuel almost doubles due to central excise duty, state sales tax or VAT, transportation cost and dealer commission.
Petrol and diesel prices are also likely to be costlier by a few paise if you buy them from private fuel retailers like Reliance Petroleum, Nayara Energy (formerly Essar Oil) and Shell. State-run oil marketing companies like Indian Oil, HPCL and BPCL control about 90% of the market.