On July 24, 2026, petrol and diesel prices across India's major metropolitan areas largely held steady. This stability follows a period of significant volatility in international crude oil markets, driven by geopolitical tensions in the Middle East.
Current Fuel Rates in Major Indian Cities
Residents in Delhi continue to pay above ₹100 for petrol, with the rate at ₹102.12 per litre, and diesel retailing at ₹95.20 per litre. Mumbai recorded petrol prices at ₹111.21 per litre and diesel at ₹97.83 per litre, maintaining rates above the ₹110 and ₹97 marks respectively.
Other key cities also saw stable prices:
- Hyderabad: Petrol ₹115.73, Diesel ₹103.82
- Kolkata: Petrol ₹113.51, Diesel ₹99.82
- Bengaluru: Petrol ₹110.44, Diesel ₹99.39
- Chennai: Petrol ₹107.76, Diesel ₹99.55
Notably, petrol prices in Hyderabad, Kolkata, Bengaluru, and Chennai all remained above ₹110 per litre, while diesel prices in these cities were below ₹100, with the exception of Hyderabad.
Global Factors Influencing Fuel Prices
The stability in domestic fuel prices comes despite recent fluctuations in global oil markets. Brent crude oil prices had seen a notable increase earlier in the week, reaching $100.69 per barrel and briefly touching $102, the highest in nearly two months. This surge was primarily attributed to escalating tensions in Iran, which sparked concerns about potential disruptions to the global energy supply, particularly regarding shipping through the Strait of Hormuz.
Despite this, oil prices had settled lower last week amidst hopes for a resumption of normal shipping activities. Domestic petrol and diesel prices have remained unchanged since May 25, when state-owned Oil Marketing Companies (OMCs) last revised rates, increasing petrol by ₹2.61 per litre and diesel by ₹2.71 per litre.
Understanding Fuel Price Determination in India
Several critical factors contribute to the final retail price of petrol and diesel in India:
- International Crude Oil Prices: As India heavily relies on imported crude, global oil rates form the largest component of domestic fuel costs.
- Rupee-Dollar Exchange Rate: Fluctuations in the exchange rate directly impact the cost of importing crude oil. A weaker rupee makes imports more expensive.
- Government Taxes: Both central and state governments levy significant taxes, including excise duty and Value Added Tax (VAT). These taxes vary by state, explaining the price differences across cities.
- Transportation Costs: The cost of transporting fuel from refineries to distribution points also adds to the retail price.
- Demand-Supply Dynamics: Local and regional demand and supply conditions can also play a role in minor price adjustments.
These combined factors determine the rates consumers pay at the pump, making domestic fuel prices susceptible to both international market movements and domestic fiscal policies.