Why Andhra Pradesh tops the fuel price charts
Petrol and diesel are priciest in Andhra Pradesh right now—petrol is around ₹110/liter and diesel is nearly ₹98/liter in the capital Amaravati.
The main reason? The state charges some of the highest fuel taxes in India, with VAT alone adding over ₹29 to each liter of petrol.
Where fuel is cheapest—and why
On the flip side, Andaman & Nicobar Islands have the lowest prices: petrol at just ₹82.46/liter and diesel at ₹78.05.
Their secret? Super low local taxes—VAT here is less than a rupee per liter.
What drives these differences
Fuel prices change from state to state mostly because of different local taxes (VAT), plus central government duties, dealer margins, and transport costs.
For example, Delhi keeps its VAT lower (about ₹15/liter), so prices there are more wallet-friendly.
Other states with high rates
Kerala and Telangana also see petrol above ₹107/liter, again thanks to higher state taxes.
Basically, where you fill up can make a big difference for your budget.
Recent tax tweaks matter too
The central government cut excise duty on fuel in 2021 and 2022—which helped bring prices down a bit—and oil companies dropped retail rates by another ₹2/liter this March.
A new excise hike set for April 2025 hasn't hit pump prices yet, so things haven't spiked further...for now.