Fuel prices for petrol and diesel across major Indian cities remained largely stable on August 23, 2026, continuing a trend of minimal change since a significant adjustment in May. State-owned Oil Marketing Companies (OMCs) had last altered prices on May 25, when petrol saw an increase of ₹2.61 per litre and diesel rose by ₹2.71 per litre.
The current stability in fuel costs is partly attributed to international crude oil prices settling lower last week. Hopes for the resumption of shipping via the Strait of Hormuz, following the latest round of US-Iran talks, contributed to this decline in global oil benchmarks.
Latest Petrol and Diesel Rates on August 23
Consumers in key metropolitan areas experienced consistent prices:
- Delhi: Petrol was priced at ₹102.12 per litre, with diesel at ₹95.20 per litre.
- Mumbai: Petrol retailed at ₹111.31 per litre, and diesel at ₹97.97 per litre.
- Kolkata: Residents paid ₹113.51 for petrol and ₹99.82 for diesel per litre.
- Chennai: Petrol stood at ₹107.78 per litre, and diesel at ₹99.56 per litre.
- Bengaluru: Petrol was ₹110.82 per litre, while diesel was ₹98.77 per litre.
- Hyderabad: Petrol reached ₹115.69 per litre, and diesel ₹103.82 per litre.
Several major cities, including Bengaluru, Hyderabad, and Kolkata, continued to see petrol prices above the ₹110 per litre mark. Diesel prices, however, remained below ₹100 per litre in most regions, with Hyderabad being an exception where it exceeded ₹103.
Understanding Fuel Price Dynamics in India
A complex interplay of global, economic, and domestic factors determines the final price consumers pay at the pump. The most significant influence is the international price of crude oil, which serves as the primary raw material for both petrol and diesel.
Another crucial variable is the rupee-dollar exchange rate. Since India relies heavily on crude oil imports, a weaker rupee makes these imports more expensive, directly impacting retail fuel prices. Furthermore, taxes levied by both the central and state governments constitute a substantial portion of the final cost, explaining why fuel rates can vary significantly from one state to another. Local transportation costs and prevailing demand-supply conditions also contribute to these regional differences.