Petrol and diesel prices across India saw no significant changes on August 30, 2026, maintaining the rates established since May 25. This stability comes despite international oil prices settling lower last week, influenced by hopes of resumed shipping via the Strait of Hormuz following recent US-Iran discussions.
The last adjustment to fuel prices by state-owned Oil Marketing Companies (OMCs) occurred on May 25, when petrol rates were increased by ₹2.61 per litre and diesel by ₹2.71 per litre.
Current Fuel Prices in Major Indian Cities (August 30, 2026)
- Delhi: Petrol ₹102.12 per litre, Diesel ₹95.56 per litre
- Mumbai: Petrol ₹112.48 per litre, Diesel ₹99.13 per litre
- Hyderabad: Petrol ₹117.07 per litre, Diesel ₹105.24 per litre
- Kolkata: Petrol ₹113.51 per litre, Diesel ₹99.82 per litre
- Bengaluru: Petrol ₹112.02 per litre, Diesel ₹100.00 per litre
- Chennai: Petrol ₹107.87 per litre, Diesel ₹99.65 per litre
Factors Influencing Petrol and Diesel Prices in India
The retail price of petrol and diesel at the pump in India is determined by a complex interplay of several global and domestic economic factors:
Global Crude Oil Prices
The international price of crude oil is the single most significant factor, as it is the primary raw material for both petrol and diesel. Fluctuations in global supply and demand, geopolitical events, and production decisions by oil-producing nations directly impact these base costs.
Rupee-Dollar Exchange Rate
Given India's heavy reliance on imported crude oil, the exchange rate between the Indian Rupee and the US Dollar plays a crucial role. A weaker Rupee makes crude oil imports more expensive, which can lead to higher retail fuel prices.
Government Taxes and Levies
Both the central and state governments levy various taxes, including excise duty and Value Added Tax (VAT), on petrol and diesel. These taxes constitute a substantial portion of the final retail price and are a primary reason why fuel rates differ across various states and cities.
Transportation Costs and Demand-Supply Dynamics
Additional factors like transportation costs from refineries to distribution points, as well as local demand-supply conditions, also contribute to the final price consumers pay at the pump.