On May 5, 2026, fuel prices across India's major metropolitan areas held steady, defying ongoing volatility in global crude oil markets. Tensions in West Asia and disruptions to critical shipping routes continue to keep international oil prices on edge, yet domestic retail rates for petrol and diesel saw no upward revision.
Current Fuel Rates in Major Indian Cities
Consumers in Delhi continued to pay ₹94.77 per litre for petrol and ₹87.67 per litre for diesel. Meanwhile, Mumbai experienced higher rates, with petrol retailing at ₹103.54 per litre and diesel at approximately ₹90.03 per litre.
Other key cities also maintained their existing price structures:
- Hyderabad: Petrol at ₹107.50, Diesel at ₹95.70
- Kolkata: Petrol at ₹105.41, Diesel at ₹92.02
- Bengaluru: Petrol at ₹102.96, Diesel at ₹91.06
- Chennai: Petrol at ₹100.84, Diesel at ₹92.39
It's notable that petrol prices remain above the ₹100 per litre mark in several major cities including Mumbai, Hyderabad, Kolkata, Bengaluru, and Chennai, while diesel generally stays below this threshold nationwide.
Factors Influencing India's Fuel Prices
The retail price of petrol and diesel in India is a complex interplay of various global, economic, and domestic elements. The most significant determinant is the international price of crude oil, which serves as the fundamental raw material for both fuels. Fluctuations in global crude prices directly impact the procurement cost for Indian oil companies.
Another crucial factor 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 these imports. This higher acquisition cost is often passed on to consumers through increased retail fuel prices.
Why Prices Vary Across States
Beyond international and national economic factors, domestic taxation plays a substantial role in the final price consumers pay. Both the central and state governments levy various taxes, including excise duty and Value Added Tax (VAT), on petrol and diesel. These taxes constitute a significant portion of the retail price and are a primary reason for the differing fuel rates across various Indian states.
Furthermore, transportation costs, which include freight charges from refineries to distribution points, and the prevailing demand-supply dynamics within specific regions also contribute to the final retail price observed at the pump.