Fuel prices across India remained stable on May 7, 2026, with no significant changes observed in major metropolitan areas. This comes as global crude oil markets continue to experience volatility, influenced by geopolitical tensions in West Asia and ongoing disruptions to key shipping routes.
Current Fuel Rates in Major Indian Cities (May 7, 2026)
As of May 7, petrol and diesel rates held steady across the country. In the capital, Delhi, petrol was priced at ₹94.77 per litre, while diesel retailed at ₹87.67 per litre.
Mumbai residents continued to pay higher rates, with petrol costing ₹103.54 per litre and diesel at approximately ₹90.03 per litre.
Other major cities also saw consistent pricing:
- Hyderabad: Petrol ₹107.50, Diesel ₹95.70
- Kolkata: Petrol ₹105.45, Diesel ₹92.02
- Bengaluru: Petrol ₹102.96, Diesel ₹91.06
- Chennai: Petrol ₹100.90, Diesel ₹92.39
Across cities like Bengaluru, Hyderabad, and Kolkata, petrol prices remained above the ₹100 mark, while diesel prices stayed below ₹100 per litre.
Factors Influencing Petrol and Diesel Prices in India
The retail price of petrol and diesel at the pump is determined by a complex interplay of global, economic, and domestic factors. The most significant component is the international price of crude oil, which serves as the primary raw material for both fuels. Fluctuations in crude oil prices directly impact what consumers pay.
Another crucial element is the rupee-dollar exchange rate. Given India's substantial reliance on imported crude oil, a weakening rupee against the US dollar increases the cost of procurement, which can lead to higher retail fuel prices domestically.
Why Fuel Prices Vary Across States
Beyond global and economic factors, domestic taxation plays a substantial role in the differing fuel prices across Indian states. Both the central and state governments levy various taxes, including excise duty and Value Added Tax (VAT), which constitute a significant portion of the final retail price. These varying tax structures are the primary reason for price disparities between states.
Additionally, transportation costs from refineries to distribution points and the prevailing demand-supply dynamics within specific regions also contribute to the final price consumers observe at the pump.