Why Fuel Prices Vary Across India: Andaman & Nicobar Has Lowest Rates

• Petrol and diesel prices vary significantly across Indian states, with Andaman and Nicobar Islands having the lowest rates.
• In Andaman and Nicobar, petrol costs ₹82.46/liter and diesel ₹78.05/liter due to lower local taxation and efficient supply.
• Daman and Diu, Dadra and Nagar Haveli, Arunachal Pradesh, and Uttarakhand also offer relatively lower fuel prices.
• The primary reason for price differences is Value Added Tax (VAT), which varies from 15% to 35% across states as fuel is outside GST.
• Transportation costs from oil refineries to different regions also contribute to price variations, especially in remote areas.