Petrol Prices Across India in 2026:
Why Delhi Pays ₹15 Less Than Andhra Pradesh

Every time you fill up your tank, the price on the meter feels arbitrary. Your friend in Delhi fills up at ₹94.72 while you in Hyderabad pay ₹107.41 for the exact same fuel. Same crude oil imported from Saudi Arabia. Same Indian refineries. Same tanker trucks. Yet a ₹12+ difference per litre. On a 40-litre tank, that's ₹500 more per fill-up.

This piece breaks down exactly why — with real numbers, interactive charts, and zero economics jargon.

State-wise Petrol Prices — May 2026

The chart below shows current petrol prices in major cities (one per state). Hover or tap any bar for exact figures. Sorted cheapest to costliest.

Why Are Prices So Different State to State?

Every litre of petrol you buy has four layers of cost baked in. The first three are identical across India. Only the fourth one varies — and that's what causes the entire gap.

Layer 1 — Base price (same everywhere)

This is the actual cost of the fuel: crude oil import cost, refinery processing, freight to your city, and oil marketing company (OMC) margin. For May 2026, this is approximately ₹56–58 per litre across India.

Layer 2 — Central Excise Duty (same everywhere)

The central government charges a fixed excise duty on every litre: ₹19.90/litre (as of 2024–25). This is the same in Kerala and Himachal Pradesh alike. There's also a road and infrastructure cess of ₹18/litre embedded in this.

Layer 3 — Dealer commission (same everywhere)

Your local petrol pump dealer gets a fixed commission of approximately ₹3.77 per litre. This is regulated and uniform nationwide.

Layer 4 — State VAT + Cess (THIS is the gap)

Every state government levies its own Value Added Tax (VAT) on petrol. Some also add a cess on top. This is 100% in state hands and varies from under 20% to over 35%.

Uttarakhand charges ~18% VAT. Andhra Pradesh charges ~31% VAT + additional cess. On a ₹57 base + ₹19.90 excise, that extra 13 percentage points alone accounts for most of the ₹15+ price gap.

Full State-wise Data Table

All 25 major states/UTs below. Click any column header to sort. Use the search box to find your state.

Where Does Your Tax Money Go?

State VAT on fuel is a discretionary revenue — states can set it freely and they're not required to spend it on roads or transport. In practice, fuel taxes go into the state's consolidated fund and get allocated across health, education, welfare schemes, and debt repayment.

States with higher development spending (like Andhra Pradesh rebuilding its capital Amaravati, or Kerala maintaining strong public health) tend to rely more on this revenue stream. States with large central transfers (like Uttarakhand and Himachal Pradesh, which get special hill-state packages) can afford lower VAT.

What Can You Actually Do About It?

If you live near a state border

Millions of Indians already do this — fill up in the cheaper neighbouring state. Delhi residents near Uttarakhand or UP borders save ₹1–5/litre. Residents of expensive states like Telangana and Andhra Pradesh near Karnataka borders save ₹4–7/litre. On a 50-litre bike tank, a 20 km detour can save ₹200–350.

CNG is the real escape valve

Compressed Natural Gas (CNG) is currently priced at ₹73–79/kg in Delhi (1 kg ≈ 1.3 litres of petrol equivalent). With better fuel efficiency, running cost drops to ₹3–4/km vs ₹7–9/km on petrol. If your city has CNG infrastructure, the conversion cost (₹15,000–25,000) typically pays off in 8–12 months.

Electric vehicles — the 10-year view

At current electricity tariffs (~₹6–8/unit), an EV costs roughly ₹1–1.5/km. Even accounting for higher purchase price, the 5-year TCO is often lower than petrol if you drive 15,000+ km/year. The state-wise price gap becomes irrelevant entirely.

Frequently Asked Questions