On June 8, 2026, retail fuel prices across India's major cities largely held steady after a series of increases that began on May 25. This stability follows a period of significant volatility in global energy markets, influenced by geopolitical tensions and rising crude oil prices.
Oil marketing companies had previously implemented four hikes within two weeks, pushing prices up by ₹2.61 per litre for petrol and ₹2.71 per litre for diesel. These adjustments were made to help companies recover losses incurred while global crude prices consistently remained above $100 per barrel.
Current Fuel Prices in Key Indian Cities (June 8, 2026)
- Delhi: Petrol ₹102.12/litre, Diesel ₹95.20/litre
- Mumbai: Petrol ₹111.21/litre, Diesel ₹97.83/litre
- Kolkata: Petrol ₹113.51/litre, Diesel ₹99.82/litre
- Chennai: Petrol ₹107.88/litre, Diesel ₹99.56/litre
- Hyderabad: Petrol ₹115.72/litre, Diesel ₹103.82/litre
- Bengaluru: Petrol ₹110.61/litre, Diesel ₹98.54/litre
Factors Influencing India's Fuel Prices
The retail price of petrol and diesel in India is a complex interplay of several global and domestic economic factors:
Global Crude Oil Prices
The international price of crude oil is the primary determinant. As India imports a significant portion of its crude, fluctuations in global commodity markets directly impact the base cost of fuel.
Rupee-Dollar Exchange Rate
Since 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 imports more expensive, contributing to higher domestic fuel prices.
Central and State Taxes
Both the central and state governments levy various taxes, including excise duty and Value Added Tax (VAT), which constitute a substantial portion of the final retail price. The differing VAT rates across states are a key reason for the variation in fuel prices from one city to another.
Transportation Costs and Demand-Supply
Additional factors like transportation costs from refineries to retail outlets and local demand-supply dynamics also contribute to the final price consumers pay at the pump.