Maha Kumbh delivers Rs 500 crore windfall to UP, fuel sales soar amid pilgrim surge

An aerial view of devotees taking a holy dip at Sangam on the occasion of Maha Shivratri during the Maha Kumbh in Prayagraj on Wednesday. (Courtesy: PTI photo)

The 45-day Maha Kumbh in Prayagraj, which witnessed an unprecedented footfall of 66 crore pilgrims, has emerged not just as a monumental religious gathering but also as a major economic catalyst for Uttar Pradesh. According to official figures, the event added approximately Rs 500 crore to the state exchequer through increased Goods and Services Tax (GST) and Value Added Tax (VAT) collections, alongside a notable surge in fuel sales.

Government records show that just in January and February 2025, tax collections from sectors directly connected to the Maha Kumbh amounted to Rs 239.47 crore. Prayagraj alone contributed Rs 146.4 crore during this period, emerging as the top revenue-generating zone. The financial boost was not confined to the host city—major pilgrim destinations such as Varanasi, Ayodhya and Noida also saw notable upticks in tax receipts.

A senior official from the state tax department confirmed that the Maha Kumbh led to an estimated Rs 500 crore increase in GST and VAT collections across various sectors. "The Maha Kumbh has contributed around Rs 500 crore in additional GST/VAT to the state exchequer, clearly reflecting the scale and reach of this religious and cultural phenomenon," the official said.

Sector-wise data reveals that the Indian Railways was among the biggest contributors, adding Rs 124.6 crore in taxes. The tent house and advertising sectors generated Rs 9.38 crore, while the hotel industry contributed Rs 7.12 crore. Air travel-related tax revenue from across the state stood at Rs 68.37 crore. From Prayagraj-based entities, Rs 2.15 crore was collected as tax deducted at source (TDS), with another Rs 9.3 crore expected to be cleared shortly. The Public Works Department (PWD) and Nagar Nigam also added to the revenue flow.

The ripple effects extended well beyond Prayagraj. Noida reported Rs 12 crore in tax collections, largely from hotels and online booking platforms. Varanasi brought in Rs 8.42 crore and Ayodhya Rs 2.28 crore. Officials noted that religious tourism, hospitality, and digital services such as travel bookings surged significantly during the Kumbh period.

Fuel consumption figures mirrored the economic surge. Data from Indian Oil Corporation (IOC) revealed that overall petrol and diesel sales in Prayagraj during January and February jumped by 36.25% compared to the same period last year. Petrol sales in January rose from 5,253 kilolitres to 7,157 kilolitres, and in February from 6,058 kilolitres to 11,022.5 kilolitres—an 81.95% increase for that month alone. Diesel sales, too, climbed from 10,204 kilolitres to 12,428 kilolitres in January and from 11,061 kilolitres to 13,777.5 kilolitres in February.

"To meet the surge in demand, Indian Oil operated 123 retail outlets round the clock in and around Prayagraj and along the key routes leading to the Kumbh venue," said a senior IOC official. "These outlets saw a 59.4% rise in petrol sales and 14.8% growth in diesel sales. Every retail outlet was equipped with clean restrooms, drinking water, air facilities, and first-aid kits to accommodate the massive inflow of pilgrims."

According to Dr Narendra Nath Mehrotra, an economist in Allahabad University, the sharp rise in petrol sales—up by 81.95% in February alone—is a strong indicator that a significant number of pilgrims travelled to Prayagraj in their own vehicles from across India. Unlike diesel, which is more commonly used in commercial and transport vehicles, the jump in petrol usage suggests increased personal car travel, pointing to the expanding reach and middle-class participation in the Maha Kumbh.

"This spike in petrol sales clearly shows that many devotees preferred to travel by their own cars. It was not just public transport or buses. Families came in personal vehicles from states as far as Maharashtra, Gujarat, and Delhi," he said.

This self-driven travel pattern had wider economic impacts—boosting roadside dhabas, eateries, small hotels, and fuel stations, particularly around Prayagraj, Ayodhya, Varanasi, and along national highways. Much of this informal economic activity, though substantial, goes unaccounted in official tax data, further underscoring the Maha Kumbh’s broader economic footprint.

UP officials emphasized that the combined increase in tax collections and fuel consumption demonstrates the enormous economic ripple effect of the Maha Kumbh. Beyond being a spiritual milestone, the event has reaffirmed the viability of religious tourism as a pillar of economic development in Uttar Pradesh. It has also validated the government's significant investment in infrastructure, logistics, and civic amenities to support such mega-events.

A senior official from the state planning department said, "The Maha Kumbh is not only a matter of faith but also a driver of economic and infrastructural transformation. It has showcased Uttar Pradesh’s ability to host events of global magnitude—and deliver measurable economic returns."

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