Top 10 States With Cheapest Petrol, Diesel Prices In India: Check The List

Fuel prices in India are revised everyday at 6 am since 2017 and the method of revising fuel prices is known as dynamic fuel prices. Because of this method, even the slightest changes in the world oil prices are shifted to fuel buyers and suppliers. The oil marketing companies have received nod of Indian Government to decide the retail cost of fuel on the basis of variations in global oil prices and currency exchange rate.

Before dynamic price method came into effect, fuel prices used to get revised every fortnight. India has a strong dependence of 85% on imports to fulfill its oil requirements.

1. Factors that cause an impact on fuel prices

There are several factors that unleash their impact on fuel prices that may include US Dollar exchange rate, global cues, fuel demand, etc. Amid the surging prices of international crude oil prices, fuel prices are rising in India too thus making it difficult for buyers. When you pay the final cost to purchase a litre of petrol/diesel, you also pay others costs that may include excise duty, value added tax (VAT), and dealer commission. After addition of VAT, dealer commission, and excise duty, there is a rise of almost 40% to 50% in the retail selling prices of fuel.

2. Recent slash in excise duty

Amid the surging fuel prices and inflation, the central government often takes initiative to control the prices by slashing excise duty. Earlier this year on May 21, 2022, government has introduced a cut in excise duty on petrol by Rs 8/litre and on diesel Rs 6/litre and the new rates became effective from May 22 onwards. It led to a fall in the retail selling prices of petrol and diesel.

3. Which state is offering cheapest fuel prices?

Fuel rates do not remain the same from state to state because of implementation of local taxation. Prices of fuel in India are directly linked to international rates. Check the table below to find which state is offering cheapest fuel in India:

Petrol Prices:

States	Petrol Prices
Uttar Pradesh	96.53/L
NCT of Delhi	96.72/L
Uttarakhand	95.28/L
Assam	96.01/L
Gujarat	96.31/L
Punjab	96.50/L
Himachal Pradesh	97.58/L
Haryana	97.34/L
Jammu And Kashmir	99.81/L
Jharkhand	99.81/L

Diesel Prices

States	Diesel Prices
Himachal Pradesh	83.36/L
Jammu And Kashmir	85.15/L
Assam	83.94/L
Karnataka	87.49/L
Punjabt	85.71/L
Uttar Pradesh	89.71/L
NCT of Delhi	89.62/L
Uttarakhand	90.29/L
Gujarat	92.06/L
Madhya Pradesh	93.93/L