India's Fuel Prices Remain Steady on July 31, 2026
Fuel prices across major Indian cities, including Delhi, Mumbai, and Chennai, showed little change on July 31, 2026. This period of stability follows a previous adjustment on May 25, when state-owned Oil Marketing Companies (OMCs) raised petrol prices by ₹2.61 per litre and diesel by ₹2.71 per litre.
Despite fluctuations in global oil markets, retail fuel rates at the pump have largely held firm for weeks, providing a consistent outlook for consumers at the end of July.
City-Wise Petrol and Diesel Rates on July 31
Consumers in various metropolitan areas observed the following approximate fuel prices:
- Delhi: Petrol retailed at ₹102.12 per litre, while diesel was priced at ₹95.20 per litre.
- Mumbai: Petrol remained above the ₹110 mark at ₹111.21 per litre, with diesel at ₹97.83 per litre.
- Chennai: Petrol was available for ₹107.78 per litre, and diesel for ₹99.56 per litre.
- Kolkata: Residents paid approximately ₹113.51 for petrol and ₹99.82 for diesel per litre.
- Hyderabad: Petrol stood at ₹115.73 per litre, and diesel at ₹103.82 per litre.
- Bengaluru: Petrol was priced at ₹110.93 per litre, and diesel at ₹98.80 per litre.
It's noteworthy that petrol prices in several major cities, including Bengaluru, Hyderabad, and Kolkata, continued to hover above ₹110 per litre, while diesel generally stayed below ₹100, with Hyderabad being an exception.
Understanding What Drives Fuel Costs in India
The retail prices of petrol and diesel in India are determined by a complex interplay of global, economic, and domestic factors. These elements collectively contribute to the final amount consumers pay at the pump.
International Crude Oil Prices
At the core of fuel pricing is the international price of crude oil. As the primary raw material for both petrol and diesel, global crude rates have the most significant impact on retail prices. Geopolitical events, supply-demand dynamics, and production decisions by major oil-producing nations constantly influence these international benchmarks.
Rupee-Dollar Exchange Rate
India is a significant importer of crude oil, making the rupee-dollar exchange rate a crucial variable. A weaker rupee against the US dollar increases the cost of procuring crude, which can directly translate into higher retail fuel prices domestically.
Central and State Taxes
Taxes levied by both the central and state governments constitute a substantial portion of the final retail price of fuel. These excise duties and Value Added Taxes (VAT) vary from state to state, explaining why petrol and diesel rates differ significantly across different cities and regions within India.
Local Logistics and Demand
Other factors, such as transportation costs from refineries to retail outlets and local demand-supply conditions, also play a role in shaping the final price consumers see at the fuel station. These localized elements contribute to the micro-variations observed across different markets.