On September 29, 2026, Indian consumers saw stable petrol and diesel prices across major cities, even as global crude oil benchmarks continued their upward trajectory. This stability comes despite a challenging environment for state-run oil marketing companies (OMCs), which are reportedly incurring substantial daily losses.
OMCs Absorb Rising Costs
India's OMCs are facing a severe financial squeeze. According to rating agency ICRA, these fuel retailers are losing approximately ₹530 crore every day because pump prices for petrol, diesel, and cooking gas have not been adjusted to reflect the rising international crude rates. Fresh tensions in West Asia and Houthi attacks on key oil facilities have contributed to the global energy supply concerns, pushing crude prices higher.
As of September 29, Brent crude was trading at $106.8 per barrel, while WTI crude stood at $93.60 per barrel. The widening gap between increasing import costs and stagnant domestic retail rates is eroding retail margins, forcing state refiners to absorb the full impact of the price surge.
City-Wise Fuel Rates Today
Here are the latest petrol and diesel prices in major Indian metropolitan areas on September 29, 2026:
- Mumbai: Petrol ₹111.21/litre, Diesel ₹97.83/litre
- Delhi: Petrol ₹102.12/litre, Diesel ₹95.20/litre
- Kolkata: Petrol ₹113.51/litre, Diesel ₹99.82/litre
- Chennai: Petrol ₹107.77/litre, Diesel ₹99.55/litre
- Bengaluru: Petrol ₹111.68/litre, Diesel ₹99.56/litre
- Hyderabad: Petrol ₹116.15/litre, Diesel ₹104.23/litre
These prices highlight the variation across cities, largely due to differing state and local taxes, as well as transportation costs.
Factors Influencing Retail Fuel Prices
Fuel prices in India are a complex mix of several components. While the base price of refined petrol or diesel is uniform across the country, local variables significantly influence the final retail price:
- Government Taxes: Both central and state governments levy taxes, which constitute a substantial portion of the final price. State-specific taxes are the primary reason for price disparities between cities and states.
- Transportation Costs: The cost of transporting fuel from refineries to distribution points and then to retail outlets adds to the final price.
- Dealer Commissions: Fuel station dealers receive a commission on each litre sold.
- Demand-Supply Dynamics: Local demand and supply conditions can also play a role, though their impact is often less pronounced than taxes.
Another critical factor is the Rupee-Dollar exchange rate. Since India heavily relies on imported crude oil, a weakening Rupee against the Dollar directly increases the cost of procurement, potentially leading to higher retail fuel prices in the future.
Outlook for Commuters
For daily commuters, the current stability means no immediate shock at the pump, though prices remain elevated compared to previous years. Consumers are advised to monitor local rates, as city-specific taxes can cause prices to fluctuate even within the same state.