Petrol prices in India continue to remain above ₹100 per litre in several cities, but some states and Union Territories still offer cheaper fuel.
According to the latest fuel price data published by LiveMint, NDTV Profit and Trade Brains, the Union Territory of Andaman and Nicobar Islands currently has the cheapest petrol in India.
Petrol in Andaman and Nicobar Islands is priced at around ₹82.46 per litre, making it the lowest fuel rate in the country and well below the ₹100-per-litre mark. The comparison is based on the latest retail selling price of petrol per litre charged to consumers across states and Union Territories.
State-wise petrol prices are determined after adding the base fuel price, central excise duty, dealer commission, transportation charges and state-level VAT. Since every state imposes different taxes on fuel, petrol prices vary sharply across India.
According to Trade Brains’ latest fuel price comparison, several northeastern states and smaller Union Territories continue to maintain petrol prices below ₹100 per litre. Arunachal Pradesh currently sells petrol at around ₹90-91 per litre, while Dadra and Nagar Haveli and Daman and Diu have rates close to ₹92-93 per litre. Himachal Pradesh also remains below the ₹100 mark, with petrol prices hovering around ₹94-95 per litre.
Why petrol prices vary across Indian states
On the other hand, several major states and metro cities continue to witness significantly higher fuel prices. According to Reuters, petrol prices in New Delhi crossed ₹102 per litre after oil marketing companies revised rates upward following rising international crude oil prices and geopolitical tensions in West Asia.
Mumbai remains one of the costliest fuel markets in India, with petrol prices staying above ₹107 per litre. Andhra Pradesh and Kerala also continue to record some of the highest fuel prices in the country, with rates touching nearly ₹110 per litre in some cities, according to Trade Brains and NDTV Profit.
LiveMint and NDTV Profit have noted that India follows a dynamic fuel pricing system under which petrol and diesel prices are revised daily at 6 AM. Introduced in 2017, the system links domestic fuel prices to global crude oil rates and currency exchange fluctuations.
Experts cited by several publications have pointed out that state VAT remains the single biggest reason behind fuel price differences across India. Regions with lower local taxes, such as the Andaman and Nicobar Islands, continue to benefit from comparatively cheaper petrol rates.
While fuel prices remain elevated in most Indian metros, the latest comparison confirms that petrol is still available below ₹100 per litre in several smaller states and Union Territories, with Andaman and Nicobar Islands remaining the cheapest place in India to buy petrol.