Fuel prices in India saw little movement on August 25, 2026, maintaining the rates set after a notable increase three months prior. State-owned Oil Marketing Companies (OMCs) last adjusted prices on May 25, when petrol rose by ₹2.61 per litre and diesel by ₹2.71 per litre across the nation. This recent stability comes despite a slight dip in global oil prices last week, influenced by developments in US-Iran relations and renewed hopes for smoother shipping via the Strait of Hormuz.
Current Fuel Rates in Major Indian Cities
As of August 25, 2026, fuel prices in key metropolitan areas are as follows:
- Delhi: Petrol is priced at ₹102.12 per litre, while diesel retails for ₹95.20 per litre.
- Mumbai: Consumers in Mumbai are paying ₹111.21 per litre for petrol and ₹97.83 per litre for diesel.
- Hyderabad: Petrol stands at ₹115.69 per litre, with diesel at ₹103.82 per litre.
- Kolkata: The price for petrol is ₹113.51 per litre, and diesel is ₹99.82 per litre.
- Bengaluru: Petrol costs ₹111.68 per litre, and diesel is available at ₹99.56 per litre.
- Chennai: Petrol is priced at ₹107.76 per litre, and diesel at ₹99.55 per litre.
Factors Influencing Petrol and Diesel Prices in India
Several interconnected global and domestic factors determine the final retail price of petrol and diesel at the pump in India:
International Crude Oil Prices
The most significant determinant is the international price of crude oil. India, being a major importer, is highly susceptible to fluctuations in global crude markets. The cost of raw material directly impacts what OMCs pay, which is then passed on to consumers.
Rupee-Dollar Exchange Rate
Given that crude oil is traded in US dollars, the exchange rate between the Indian Rupee and the US Dollar plays a crucial role. A weaker rupee makes crude oil imports more expensive, leading to higher retail fuel prices in India.
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 price and are a primary reason why fuel rates vary significantly from one state to another.
Transportation Costs and Demand-Supply Dynamics
Additional factors like the cost of transporting refined fuel from refineries to distribution points, along with local demand-supply conditions, also contribute to the final price consumers encounter at the fuel station.