Hyderabad Motorists Bear India’s Heaviest Petrol Tax Burden

Hyderabad, June 6, 2026: Motorists in Hyderabad are paying the highest fuel taxes among India’s major metropolitan cities, according to fresh data obtained through the Right to Information (RTI) Act from Hindustan Petroleum Corporation Limited (HPCL).

The report reveals that the Telangana government collects a Value Added Tax (VAT) of ₹28.99 per litre on petrol sold in Hyderabad, significantly higher than other major metros. Delhi collects ₹16.60 per litre, Mumbai ₹25.51, Chennai ₹22.12, and Bengaluru ₹24.54.

The impact of these taxes is substantial. For every 1,000 litres of petrol sold, the state earns nearly ₹28,990, while sales of one lakh litres generate approximately ₹28.99 lakh in tax revenue.

Diesel users are also facing a similar burden. Hyderabad records the highest diesel VAT collection at ₹21.46 per litre, surpassing Delhi (₹13.91), Mumbai (₹16.53), Chennai (₹18.27), and Bengaluru (₹16.81).

As a result, Hyderabad has emerged as one of the costliest cities for fuel consumers. Petrol prices in the city have reached ₹115.68 per litre, higher than Mumbai (₹111.17), Bengaluru (₹110.88), Chennai (₹107.73), and Delhi (₹102.15). Diesel prices have also remained among the highest in the country.

The findings have reignited discussions on fuel taxation policies and the growing financial burden on commuters, transport operators, and businesses dependent on fuel consumption. Industry observers suggest that reducing fuel taxes could provide relief to consumers and help curb transportation-related inflation.