RTI shocker: Hyderabad records India’s costliest Petrol and Diesel due to high VAT
HYDERABAD: Even as political leaders from the BRS and Congress engage in a war of words over jagir and corruption, a staggering truth about the country’s fuel pricing has emerged from an RTI reply. The people of Telangana are not just paying more at the pump, they are being taxed the heaviest.
An RTI reply obtained by Right to Information(RTI) Robin Zaccheus from Hindustan Petroleum Corporation Limited (HPCL) shows Hyderabad has the highest Retail Selling Price (RSP) for petrol and diesel among all major Indian cities. The main reason is the high Value Added Tax (VAT) imposed by the Telangana State government.
In detail, HPCL data from June 1, 2026, breaks down fuel prices in Hyderabad. Petrol costs Rs 115.68 per litre. The base price to dealers is Rs 82.14. VAT at 35.2% adds Rs 28.99. The dealer commission is Rs 4.55. Similarly, diesel costs Rs 103.81 per litre. The base price to dealers is Rs 79.28. VAT at 27% adds Rs 21.46. The dealer commission is Rs 3.07.
Compared to other cities, Delhi has the lowest VAT, with petrol at rs 102.15 and diesel at Rs 95.24. In Mumbai, petrol costs Rs 111.17 and diesel Rs 97.81. In Chennai, petrol is Rs 107.73 and diesel Rs 99.55. In Bengaluru, petrol is Rs 110.88 and diesel Rs 98.79. Hyderabad records the highest RSP, with petrol at Rs 115.68 and diesel at Rs 103.81.
Despite this, the central government reduced central excise duty in March 2026. Petrol excise dropped from Rs 21.90 to Rs 11.90 per litre. However, the Telangana government did not pass this benefit to consumers and kept state VAT rates high.
Activist Robin Zaccheus criticized both the previous BRS administration and the current Congress government. He said both used fuel taxes to collect money while claiming to support the public. Further Zaccheus said, “The hypocrisy is clear. KTR and the BRS did not reduce VAT when they were in power. Now, Ponnam Prabhakar and Congress are in power, but VAT is still 35%. All the speeches and drama are just political theatre to make people angry.” In addition, he said that cutting VAT by 5–10% would give immediate relief to families, farmers, and small businesses in Telangana. However, he believes neither party is willing to do this.
Furthermore, the RTI reply also showed HPCL’s payments to the central government, including customs duties and central excise. Activists say that while central excise duties are uniform across India and have been reduced, Telangana’s VAT remains the highest among all states.
Many people on social media are calling for lower fuel taxes. Zaccheus has demanded that the Telangana government hold a cabinet meeting and cut VAT by at least 10%. He added, “Enough of this drama. The Telangana government must reduce VAT on fuel now. Stop taking money from ordinary people to fill government coffers.”
