Reasons Behind Different Prices of Petrol and Diesel in Different Cities
The major variation in petrol and diesel prices springs up in all cities in India, even if they are being noticed by different people. It is the same price in Delhi as in Mumbai, Jaipur, or Patna. Have you ever wondered why this happens? There are a number of reasons behind it—taxes, transportation costs, dealer commissions, and international crude oil price. Let’s understand this in detail.
State-wise Tax Differences – The Real Reason
Petrol and diesel prices in India are determined by two different taxes:
- Central Government Excise Duty
- VAT or Sales Tax by State Government
Though all states have the same central excise tax for petrol and diesel, every state government taxes individually.
For example: Rajasthan, Maharashtra, and Madhya Pradesh have higher taxes, and hence, petrol is relatively costlier here. On the other hand, some states like Goa or Arunachal Pradesh have lower taxes, which again makes the fuel cheaper. In addition to that, dealer commissions and transportation costs are also different from state to state.
For example: Petrol pumps in a state with a greater distance from refineries have higher transportation costs for transporting the oil; the consumer eventually pays such expense.
Effect of International Market and Dollar Rate
Over 85% of the crude oil is imported into India. Therefore, any increase in international oil prices would naturally impact fuel prices in India as well. Also, as the rupee gets weaker against the dollar, fuel prices rise for petrol and diesel. That’s why you always hear, “oil became cheaper internationally, but India didn’t benefit” — because the rupee has also weakened or state taxes have not decreased.
However, there is no answer to this much-discussed question: why hasn’t GST been imposed on petrol and diesel yet?
Now, when GST has been imposed for so many things, why not on petrol and diesel?
Reason: These petroleum products are a major source of revenue for both the central and state governments. If they bring petrol and diesel under GST, then states can’t levy taxes as per their wish and thus would suffer revenue loss.
There is, however, talk on a regular basis that under GST, prices would become uniform across the country, relieving consumers. Estimates by experts say that this would reduce petrol prices by around ₹10–₹15 per litre.
Petrol Prices in Major Cities (October 2025)
As far as petrol prices are concerned, they differ considerably from one city to another in India.
| City | Petrol Price (₹/Litre) |
|---|---|
| Delhi | ₹96.72 |
| Mumbai | ₹106.31 |
| Chennai | ₹100.65 |
| Lucknow | ₹94.54 |
| Patna | ₹105.43 |
| Jaipur | ₹107.80 |
| Bhopal | ₹108.15 |
| Guwahati | ₹98.22 |
| Arunachal Pradesh | ₹90.65 |
Clearly, petrol is most expensive in states like Madhya Pradesh and Rajasthan, while it is much cheaper in the Northeast.
Diesel Prices Also Change
Diesel rates also vary from city to city.
| City | Price of Diesel (₹/Litre) |
|---|---|
| Chennai | 92.35 |
| Lucknow | 87.86 |
| Patna | 92.37 |
| Jaipur | 93.05 |
| Bhopal | 93.50 |
| Guwahati | 90.05 |
| Arunachal Pradesh | 80.25 |
Diesel prices are important for transportation and industry, so any hikes would directly affect freight rates and commodity prices.
How to Find Out the Latest Rates in Your City?
Oil companies now let customers send their requests for petrol-diesel prices through SMS and online.
By SMS:
- Indian Oil: Send
RSP <space> city codeto 9224992249 - Bharat Petroleum (BPCL): Send
RSP <space> city codeto 9223112222 - Hindustan Petroleum (HPCL): Send
HPPRICE <space> city codeto 9222201122
You will receive the price for your city in a few seconds — totally free!
Online:
You can check prices by visiting indianoil.in, bharatpetroleum.in, or hindustanpetroleum.com, or by using their mobile apps. These sites update the new rates every day at 6 am.
Fuel Prices and Their Effects on Common Man
The increase in petrol and diesel prices reflects changes in daily life.
- As transport costs go up, so do prices for vegetables, fruits, grains, and some medicines.
- Taxi, auto, and bus fares increase.
- The overall monthly budget gets affected.
For instance: The long-distance commuter ends up spending an additional ₹400–₹800 per month when petrol is hiked by ₹5 per litre. However, if petrol prices come down, then some relief is given to the people. Governments often reduce certain taxes during festivals or election times to give the public a feel of relief.
Conclusion
Petrol and diesel prices in India are subject to daily changes, and these differences hold between states. From taxation to transportation to international market fluctuations, several factors influence these rates. So before refueling your vehicle, know the latest rates in your city — whether through SMS or online apps. Fuel prices are not limited to vehicles; they directly and indirectly affect household expenses, goods, and overall cost of living. If ever brought under GST, petrol and diesel prices could become uniform nationwide, potentially bringing them down further.
Disclaimer
This article is for informational and awareness purposes only. Petrol and diesel prices are variable and change daily, including the example prices mentioned here. For accurate and updated prices, please check at your nearest petrol pump or visit the respective oil company website. This article should not be considered financial advice.