Which Indian state or union territory has the cheapest petrol? Here are the prices under ₹100/litre | Today’s news
Petrol prices in India remain above par ₹100 per liter 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 costs approx ₹82.46 per liter which is the lowest fuel economy in the country and well below that rate ₹100 per liter mark. The comparison is based on the latest retail selling price of petrol per liter charged to consumers across states and union territories.
National petrol prices are determined after adding the basic price of fuel, central excise duty, dealer commission, transport charge and state VAT. Since each state imposes different taxes on fuel, petrol prices vary widely in India.
According to the latest fuel price comparison by Trade Brains, several northeastern states and smaller union territories continue to keep petrol prices below ₹100 per litre. Arunachal Pradesh is currently selling petrol around ₹90-91 per litre, while Dadra and Nagar Haveli and Daman and Diu have the prices close ₹92-93 per liter. Himachal Pradesh also remains under it ₹100 marks, with petrol prices hovering around ₹94-95 per liter.
Why petrol prices vary in different Indian states
On the other hand, several major states and metro cities continue to see significantly higher fuel prices. According to Reuters, petrol prices have crossed in Delhi ₹102 per liter after oil companies revised rates upwards following rising international oil prices and geopolitical tensions in West Asia.
Mumbai remains one of the most expensive fuel markets in India, with petrol prices remaining higher ₹107 per liter. Andhra Pradesh and Kerala also continue to see some of the highest fuel prices in the country, with rates almost touching ₹110 per liter in some cities, according to Trade Brains and NDTV Profit.
LiveMint and NDTV Profit noted that India follows a dynamic fuel pricing system whereby petrol and diesel prices are revised daily at 6am. The system was introduced in 2017 and links domestic fuel prices to global oil rates and currency fluctuations.
Experts cited by several publications pointed out that state VAT remains the single biggest reason for fuel price disparity in 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 at lower prices ₹100 per liter in several smaller states and union territories, with Andaman and Nicobar Islands remaining the cheapest place in India to buy petrol.