Where in India do you get fuel at the lowest prices?

Petrol and Diesel prices differ from state to state. Thanks to various taxes imposed by the central and the state authorities concerned. Let us find out in which city of India you can get fuel at the lowest price.

cheapest petrol diesel price in india placesPrices of diesel and petrol, which are currently at a record high, differ from one place to another due to differences in local sales tax or VAT and transport price. Across all states and Union Territories, the purchase price of petrol is highest in Maharashtra and the cheapest is in the Andaman and Nicobar Islands. Diesel car owners pay the most for fuel in Hyderabad at Rs 90.73 (as on 5th May, 2021) for one litre of diesel.

The following three cities have the lowest petrol price in India

lowest petrol price in india

  • Port Blair (Andaman and Nicobar Islands) – Rs 62.30 per litre
  • Panjim (Goa) – Rs 88.45 per litre
  • Agartala (Tripura) – Rs 90.64 per litre

If you are in Port Blair, Andaman and Nicobar Islands, you will be paying just Rs 78 to get one litre of petrol, but the same petrol will make you spend Rs at 99.99 at Parbhani Maharashtra; a stark gap of over Rs 21.99. Maharashtra includes two VAT slabs. Petrol pumps in Mumbai, Thane, and Navi Mumbai need to shell out a VAT of 47.94%, a percentage point less than the rest of the state.

In Mumbai, people pay the highest price for petrol which is around Rs 98.88 and for diesel it is Rs 90.40 which is way higher in comparison to all state capitals such as Patna (Bihar) – Rs 94.99 (Petrol) and Bhopal (Madhya Pradesh) – Rs 98.78 (Petrol).

*Note – Fuel prices as on 5th May, 2021 mentioned above.

The following three cities have the lowest diesel price in India 

lowest diesel price in india

  • Port Blair (Andaman and Nicobar Islands) – Rs 77 per litre
  • Itanagar (Arunachal Pradesh) – Rs 78.80 per litre
  • Gulbarga (Karnataka) – Rs 86.69 per litre 

Prices of diesel across India

In a state, if the VAT on petrol is high, it does not necessarily mean the VAT on diesel is also high. Telangana levies the maximum VAT on diesel at 27 %. Consequently, Hyderabad fetches the costliest price for diesel. Places like Chhattisgarh, Gujarat, Telangana, Kerala are different states where diesel is the costliest. Diesel price is Rs 89.82 for one litre at Amaravati (Maharashtra), Rs 88.88 at Thiruvananthapuram (Kerala), Rs 70.49 per litre at Raipur (Chhattisgarh), and Rs 89.31 at Ahmedabad (Gujarat).

The Union Territory levies the lowest percentage of VAT on the petrol as well as diesel fuel type, which makes it the lowest priced across India. Certainly, Union Territories residents have a big advantage of owning a car because both petrol and diesel prices there are considerably low.  

*Note – Fuel prices as on 5th May, 2021 mentioned above.

What do diesel and petrol retail costs include? 

Between refinery gate along with your vehicle’s fuel tank, the purchase price of fuel nearly doubles because of central excise duty, state sales tax or VAT, transport cost, and trader or dealer commission.

You will find more expensive petrol and diesel at private fuel retailers such as Reliance Petroleum, Nayara Energy (previously Essar Oil), and Shell. Companies like Indian Oil, HPCL, and BPCL control roughly 90 percent of this marketplace.

India imports all its petroleum needs but is significantly more than self-explanatory in petrol and diesel production. So, the transaction parity pricing mechanism has frequently been criticized, particularly considering that petrol and diesel are ‘decontrolled’ fuels. The complaints include allegations of cartelization together with all the three PSU oil companies charging the same cost, despite different price efficiencies and structures. Transparent pricing, according to market fundamentals, will probably help customers.

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