Cheapest Petrol In India: Consumers across India are keeping a close eye on petrol and diesel prices amid growing concerns over fuel supply and price fluctuations due to ongoing tensions in the Middle East. What many people do not know is that fuel prices can vary greatly from one state to another. Let us know where the cheapest petrol is available in India and why there is this difference in prices.

cheapest fuel in india

The lowest prices of petrol in the country are found in Andaman and Nicobar Islands. The price of petrol here is around ₹ 82.46 per liter. With this, the price of diesel is around ₹ 78.05 per liter. The main reason behind these low prices is the reduction in local taxes and better supply system.

Other states with low petrol prices

Petrol prices are also very low in areas like Daman and Diu, Dadar and Nagar Haveli. The price here is around ₹92-₹93 per litre. Similarly, Arunachal Pradesh and Uttarakhand are also included in those states where fuel is cheap. At the same time, prices remain normal to a large extent in areas like Haryana, Chandigarh and Punjab.

The biggest reason for the difference in prices

The main reason for the difference in prices is value added tax. Because petrol and diesel do not come under the purview of GST, every state imposes tax accordingly. Some states levy value added tax as low as 15% to 20% and some states levy value added tax as high as 35%. Because of this there is a huge difference in prices.

Transport and freight

Fuel is transported from refineries to different parts of the country. In states which are far from the refinery or where the terrain is difficult, the cost of transportation is higher. This ultimately gets added to the retail price of petrol and diesel.

dealer’s commission

Petrol pump dealers earn commission on every liter sold. Although this difference is not much. But despite this, slight differences in prices in different states and areas can affect the final price at the pump.

Apart from all this, some states also impose additional fees. Like pollution cess, road development tax or social welfare cess. Due to these additional charges, the retail price of fuel increases in some areas.

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