Why petrol prices in Hyderabad are higher than Delhi
Petrol in Hyderabad has shot up from ₹87.06 per liter in 2021 to ₹107.46 at present—a 23% hike.
That's higher than Delhi's ₹94.77 per liter, making Hyderabad the third most expensive city for petrol after Pune and Jalandhar.
What is the reason for high fuel costs?
Even though the central government cut excise duty by ₹13 on petrol in November 2021 and May 2022, Telangana hasn't changed its Value Added Tax (VAT), so local prices stayed high.
Union Petroleum Minister Hardeep Singh Puri said the central relief was fully passed on to consumers. However, Telangana's VAT policy has kept fuel costs steep.
Impact on consumers and state economy
With petrol about ₹12 per liter costlier than in neighboring Karnataka, many bulk buyers are heading out of state for fuel—costing Telangana around ₹2,000 crore a year in lost revenue.
Higher diesel prices are also pushing up costs for transport and logistics companies across the state.