- By Pawan Mishra
- Fri, 12 Jun 2026 11:29 AM (IST)
- Source:JND
Fuel Price Comparison Indian Cities: Due to the conflict between the US and Iran, the global crude oil prices skyrocketed, and as a result, the prices of petrol and diesel were hiked by four times in India. Notably, India imports more than 85 per cent of its fuel needs, and the blockade of the Strait of Hormuz ended up hitting the margins of oil manufacturing companies in the country. The petrol prices are trading above the Rs 100 mark per litre, whereas diesel is priced over Rs 95/litre in India. But do you know, there’s a city in India where petrol is priced at Rs 88.66 per litre? Let’s take a look at the Indian city that has the cheapest petrol prices.
Indian City With The Cheapest Petrol Prices
Many might believe that one of the major metro cities has the cheapest petrol in India. But that’s not the case. While petrol is priced at Rs 102.12 per litre in the national capital Delhi, it is priced at Rs 111.21 per litre in the financial capital of the country, Mumbai, and even in Bangalore, it is priced at Rs 110.93 per litre. So which Indian city has the cheapest petrol prices? Well, the Indian city with the cheapest petrol prices is 2,485 kilometres away from the national capital, and it is situated in the Andaman and Nicobar Islands. Port Blair offers the cheapest petrol in India, and while petrol costs more than Rs 100 in almost every major city in the country, it is priced at Rs 88.66/litre in Port Blair.
Also Read: 2027 Hyundai i20 Leaked Ahead Of Global Debut; Check Expected Features And Specs
Why Petrol Is Cheaper In Port Blair?
Petrol prices in India are decided by the public sector’s oil manufacturing companies, and it comprises of several factors, including Value Added Tax (VAT) levied by the state governments. While the majority of the Indian cities levy around 30-40 per cent of VAT on petrol, the Andaman and Nicobar Islands levy only around 6 per cent VAT, and this is the reason why petrol prices are the cheapest in Port Blair. Additionally, the government provides subsidised fuel to the residents of the Andaman and Nicobar Islands as they face geographical and logistical challenges.