Cheapest Petrol in India: Why Fuel Prices Vary So Much State-Wise?

• Andaman and Nicobar Islands offer the cheapest petrol at ₹82.46/liter and diesel at ₹78.05/liter due to low local taxes and smooth supply.
• Other regions like Daman and Diu, Dadra and Nagar Haveli, Arunachal Pradesh, and Uttarakhand also have comparatively cheaper fuel.
• The primary reason for price differences is that petrol and diesel are outside GST, allowing states to levy varying VAT (15% to 35%).
• Transportation and freight costs from refineries also contribute to price variations, especially in remote or hilly areas.
• Dealer commissions and additional state-imposed cesses (pollution, road development, social welfare) further impact the final fuel price.