Fuel prices in India have largely held steady across major cities as of August 28, 2026. State-owned Oil Marketing Companies (OMCs) have maintained rates since the last adjustment on May 25, when petrol saw an increase of ₹2.61 per litre and diesel rose by ₹2.71 per litre.
Despite some fluctuations in global oil markets, with prices settling lower last week amidst hopes for resumed shipping via the Strait of Hormuz after US-Iran discussions, domestic fuel costs have remained consistent.
Current Fuel Prices in Key Indian Cities (August 28, 2026)
- Delhi: Petrol ₹102.12/litre, Diesel ₹95.20/litre
- Mumbai: Petrol ₹111.21/litre, Diesel ₹97.83/litre
- Hyderabad: Petrol ₹115.69/litre, Diesel ₹103.82/litre
- Kolkata: Petrol ₹113.51/litre, Diesel ₹99.82/litre
- Bengaluru: Petrol ₹110.82/litre, Diesel ₹98.77/litre
- Chennai: Petrol ₹107.76/litre, Diesel ₹99.55/litre
These figures show petrol continuing to trade above ₹100 per litre in Delhi and exceeding ₹110 per litre in cities like Mumbai, Bengaluru, and Kolkata. Diesel prices generally remain below ₹100 per litre, with Hyderabad being an exception.
Factors Influencing India's Fuel Costs
The retail price of petrol and diesel in India is a complex interplay of several global, economic, and domestic factors. The primary driver is the international price of crude oil, which forms the fundamental raw material for both fuels.
Global Crude Oil Dynamics
Fluctuations in global crude oil prices have the most significant impact on what consumers ultimately pay at the pump. Geopolitical events, supply and demand imbalances, and production decisions by major oil-producing nations all contribute to these international price movements.
Currency Exchange Rates
As India is a major importer of crude oil, the rupee-dollar exchange rate plays a crucial role. A weakening rupee against the US dollar increases the cost of purchasing crude, directly influencing retail fuel prices.
Taxation and Local Variances
Both the central and state governments levy various taxes on fuel, which constitute a substantial portion of the final price. These varying tax structures are the primary reason why petrol and diesel rates differ from one state to another across India.
Logistics and Market Forces
Additional factors like transportation costs from refineries to distribution points, dealer commissions, and local demand-supply conditions also contribute to the final retail price consumers encounter.