Fuel prices rose for the third time during the past eight days, with gasoline and diesel witnessing a rise of about 100%. $1 per litre. In Delhi, the price of petrol is now $99.51 per litre, while diesel was $92.49 litres.
However, petrol and diesel prices differed between metro cities and states, with Mumbai witnessing lower petrol prices $108.49 per liter and Delhi sees it at $99.51.
Fuel prices are set to rise gradually over time in small doses as oil marketing companies continue to see revenue losses of approx $8-10 per liter of petrol and diesel due to the ongoing crisis in West Asia.
Different fuel prices across India
On Saturday, Hyderabad recorded the highest petrol prices in $112.81 per litre, while Thiruvananthapuram’s record follows closely behind at $112.64. Hyderabad and Thiruvananthapuram also remained the only cities where the diesel price crossed $100.
Below is a list of cities and their gasoline prices (per litre):
- Hyderabad- $112.81
- Thiruvananthapuram- $112.64
- Patna- $111
- Kolkata- $110.64
- jaipur- $109.84
- Mumbai- $108.49
- Bengaluru- $108.09
- Bhubaneswar- $106.18
- Chennai- $105.31
- Guwahati- $105.1
- Delhi- $99.51
Why do fuel prices differ between states?
Petrol and diesel prices vary across states, depending on various factors such as Value Added Tax (VAT) and additional local taxes levied by different state governments.
While the central excise duty charged by the Center remains the same across the country, the final price paid by consumers at the pump depends on the state’s tax policies.
The amount of VAT and local taxes levied by the state government determines final fuel prices. In general, opposition-governed states have higher prices due to significantly higher duties on retail consumers.
The highest fuel prices were seen in the states of Andhra Pradesh and Telangana, where gasoline prices reached about 20%. $116 per liter, paid for by heavy state taxes.
Andhra has imposed a VAT of 31% plus an additional tax $4 pounds per liter and road development fees, pushing the tax burden to nearly 35%.
In Kerala, prices were higher $113 per liter in several cities, due to the state government’s decision to maintain a high VAT base and an additional social security tax.
Meanwhile, the lowest petrol prices were seen in BJP-ruled states like Gujarat, Uttar Pradesh and Haryana. Gasoline prices remained between $95-98 per liter due to moderate government tax brackets and absence of local restrictions. Delhi, Goa and Assam also witnessed relatively lower consumer prices.
