Petrol and diesel prices are the costliest in the country in Andhra Pradesh, Telangana and Kerala while it is cheapest in smaller states and UTs like Andaman & Nicobar Islands, Delhi and those in the North East, mainly due to differential in local sales tax or VAT rates, oil industry data showed. The three state-owned fuel retailers – Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) – last week cut petrol and diesel prices by Rs 2 a litre each, ending a nearly two-year hiatus in price revision.
That reduction brought relief to fuel users but rates continue to be above Rs 100 a litre mark in some states due to higher Value Added Tax (VAT).
