Fuel Price Puzzle: Why Petrol is Cheaper in Andaman & Costlier in Mumbai

• Petrol prices vary widely across India, with Andaman and Nicobar Islands offering the lowest rates (petrol Rs 82.46/litre, diesel Rs 78.05/litre) due to low local taxation and efficient supply.
• Regions like Daman and Diu, Dadra and Nagar Haveli, Arunachal Pradesh, and Uttarakhand also have comparatively lower fuel prices.
• The primary reason for price variation is Value Added Tax (VAT), as petrol and diesel are outside GST; states impose VAT ranging from 15% to 35%.
• Transportation and freight costs also contribute, with higher logistical expenses for regions far from refineries or in hilly terrains passed on to consumers.
• Dealer commission and additional government cesses (pollution cess, road development tax, social welfare cess) further increase retail prices in certain states.