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Arbitrary management of states on Petrol-Diesel? 1 rupee in Andaman and 35 rupees in Telangana Tax
Samira Vishwas | May 17, 2026 9:24 AM CST

  • Inflation flared up in India too
  • Which states levy the highest taxes on petrol?
  • Which states have the lowest taxes?

India Petrol Tax Rate: Other countries are being hit hard by the global situation. Therefore, inflation has flared up in our India as well. Along with this, the price of petrol and diesel in India is increasing drastically. Petrol – Diesel does not come under the ambit of GST; As a result, each state determines its own rate of ‘VAT’ i.e. value added tax. Due to this very reason, fuel prices vary widely across the country. In some areas the amount of taxes is very low, while in other areas it is significantly higher and this situation is directly affecting the pocket of common consumers. Let’s know exactly why and how much difference there is in the prices.

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Which states levy the highest taxes on petrol?

In India, Telangana levies the highest VAT on petrol at 35.20 percent. This is the highest rate in the entire country. After this, many other states also see higher tax rates. Exactly how much tax is levied in which states? Let’s find out…

Andhra Pradesh: 31 percent + ₹4 per liter + Road Development Cess (Cess)
Kerala: 30.08 percent + ₹1 per liter + other cesses
Karnataka: 29.84 percent
Rajasthan: 29.04 percent + road development cess
Madhya Pradesh: 29 percent + ₹2.50 per liter + 1 percent cess
Odisha: 28 percent
Maharashtra: 25 percent + ₹5.12 per liter (additional tax)
West Bengal: 25 percent + cess
Manipur: 25 percent

Which states have moderate tax rates?

Assam: 24.77 per cent or ₹18.80 per litre
Chhattisgarh: 24 percent + ₹2 per litre
Bihar: 23.58 percent + Surcharge
Nagaland: 21.75 percent
Goa: 21.5 percent + Green Cess
Delhi: 19.40 percent
Uttar Pradesh: 19.36 per cent or ₹14.85 per litre
Haryana: 18.20 percent + additional tax

Which states have the lowest taxes?

Tamil Nadu: 13 percent + ₹11.52 per litre
Gujarat: 13.7 percent + Cess
Arunachal Pradesh: 14.50 percent
Lakshadweep: 10 percent
Andaman and Nicobar: 1 percent (lowest in the country)
Thus there is a huge variation in taxes from state to state.

Petrol and DieselThe above taxes vary considerably from state to state. The difference between the states with the highest VAT and the states with the lowest is more than 34 percent. This means that if the base price of petrol is ₹100 in one area, the tax amount may reach ₹35 in another area; While in some other areas the amount remains around ₹1 only. Accordingly the price of petrol that we get varies. As a result, there is a difference in the prices due to the tax levied in this way.

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