Fuel prices in India held steady on May 26, 2026, after a recent hike on Monday. This latest increase marked the fourth revision in two weeks, pushing petrol and diesel rates higher across the country.
Recent Price Movements and Global Factors
The recent adjustments saw petrol prices rise by ₹2.61 per litre and diesel by ₹2.71 per litre. These revisions are attributed to oil marketing companies working to recover losses accumulated over months, amidst a volatile global energy market. International crude oil prices have surpassed $100 per barrel, further exacerbated by the ongoing US-Iran conflict and the closure of the Strait of Hormuz.
City-wise Fuel Prices on May 26
As of May 26, 2026, the latest fuel prices in key Indian cities are:
- New Delhi: Petrol ₹102.12/litre, Diesel ₹95.20/litre (Petrol crossed the ₹100 mark).
- Mumbai: Petrol ₹111.21/litre, Diesel ₹97.83/litre (Petrol crossed the ₹110 mark).
- Hyderabad: Petrol ₹115.73/litre, Diesel ₹103.82/litre.
- Kolkata: Petrol ₹113.47/litre, Diesel ₹99.82/litre.
- Bengaluru: Petrol ₹110.93/litre, Diesel ₹98.80/litre.
- Chennai: Petrol ₹107.87/litre, Diesel ₹99.66/litre.
Understanding Fuel Price Determinants in India
Several critical factors influence the retail price of petrol and diesel at the pump in India:
- International Crude Oil Prices: As the primary raw material, global crude oil rates have the most significant impact on domestic fuel prices.
- Rupee-Dollar Exchange Rate: India heavily relies on imported crude. A weakening rupee against the US dollar increases the cost of crude procurement, which can lead to higher retail prices.
- Central and State Taxes: Both the central and state governments levy substantial taxes, including excise duty and VAT, on fuel. These taxes constitute a significant portion of the final price, explaining why rates differ across states.
- Transportation Costs and Demand-Supply: Logistics expenses for transporting fuel from refineries to distribution points, along with local demand-supply dynamics, also play a role in determining the final retail price consumers pay.