Fuel Prices Largely Unchanged Across India on August 12
Petrol and diesel prices across major Indian cities saw minimal changes on August 12, 2026, continuing a trend of stability that has been largely in place since May 25. This steady pricing comes despite recent fluctuations in global oil markets, where prices settled lower last week amid hopes for resumed shipping via the Strait of Hormuz.
Key City Fuel Rates
Consumers in Delhi continue to pay above the ₹100 mark for petrol, with rates at ₹102.12 per litre. Diesel in the capital is priced at ₹95.20 per litre. Mumbai maintains some of the highest fuel costs, with petrol at ₹111.21 per litre and diesel at ₹97.83 per litre.
Other major metropolitan areas also show varying rates:
- Hyderabad: Petrol ₹115.69, Diesel ₹103.82
- Kolkata: Petrol ₹113.51, Diesel ₹99.82
- Bengaluru: Petrol ₹111.68, Diesel ₹99.56
- Chennai: Petrol ₹107.76, Diesel ₹99.55
Understanding Fuel Price Dynamics in India
Several critical factors converge to determine the final price consumers pay at the pump. The most significant influence is the international price of crude oil, which serves as the fundamental raw material for both petrol and diesel. Fluctuations in global supply and demand directly impact this base cost.
Another crucial element is the exchange rate between the Indian Rupee and the US Dollar. As India heavily relies on imported crude, a weaker rupee makes crude oil purchases more expensive, which can translate into higher retail fuel prices domestically.
Why Prices Vary Across States
Beyond global and economic factors, domestic taxation plays a substantial role in the differing fuel prices across various Indian states. Both the central and state governments levy taxes, which constitute a significant portion of the final retail price. These varying tax structures directly contribute to the price discrepancies observed between cities like Delhi and Mumbai.
Additionally, transportation costs from refineries to distribution points, along with local demand-supply conditions, also factor into the ultimate price consumers encounter at their local fuel stations.