Fuel prices across India's major cities held steady on April 21, 2026, maintaining the rates observed on April 20. This pause comes despite ongoing volatility in global crude oil markets, driven by geopolitical tensions in West Asia and disruptions to critical shipping routes. The stability in domestic fuel prices also coincides with heightened political sensitivities ahead of state elections.
In the capital city, Delhi, petrol continues to retail at Rs 94.77 per litre, while diesel is priced at Rs 87.67 per litre. Consumers in Mumbai face higher rates, with petrol selling at Rs 103.50 per litre and diesel at approximately Rs 90.03 per litre.
Other major metropolitan areas, including Bengaluru, Hyderabad, and Kolkata, continue to see petrol prices above the Rs 100 per litre mark. Diesel, however, remains below Rs 100 per litre across these cities. Chennai also recorded petrol at Rs 101.06 per litre and diesel at Rs 92.61 per litre on April 20.
What Influences Fuel Prices in India?
The retail prices of petrol and diesel at the pump are determined by a complex interplay of international, economic, and domestic factors. The most significant driver is the international price of crude oil, which serves as the fundamental raw material for both fuels. Fluctuations in global crude rates directly impact the cost of procurement for Indian oil companies.
Another crucial economic variable is the rupee-dollar exchange rate. Since India relies heavily on imported crude oil, a weakening rupee against the dollar increases the cost of purchasing crude, which can subsequently lead to higher retail fuel prices for consumers.
Why Do Prices Vary Across States?
Beyond global and economic factors, domestic taxation plays a substantial role in the final price of fuel. Both the central and state governments levy various taxes, including excise duty and Value Added Tax (VAT), which account for a significant portion of the retail price. The differing VAT rates and local levies imposed by individual state governments are the primary reason why petrol and diesel prices vary from one state to another.
Additionally, transportation costs from refineries to retail outlets, along with local demand and supply dynamics, also contribute to the final price consumers pay at the fuel pump.