Fuel prices in India saw little movement on August 2, 2026, maintaining the rates that have been largely stable since a significant increase on May 25. This stability follows a period where state-owned Oil Marketing Companies (OMCs) raised petrol prices by ₹2.61 per litre and diesel by ₹2.71 per litre. The current equilibrium is partly attributed to global oil prices settling lower last week, driven by renewed hopes for unimpeded shipping through the Strait of Hormuz amidst reports of a US-Iran war.
Current Fuel Rates in Major Indian Cities
Here’s a snapshot of petrol and diesel prices across key Indian metropolitan areas:
- Delhi: Petrol continues to be priced above ₹100, retailing at ₹102.12 per litre. Diesel is available at ₹95.20 per litre.
- Mumbai: Petrol prices remain above the ₹110 mark at ₹111.21 per litre. Diesel is priced at ₹97.83 per litre, reflecting a slight adjustment from previous rates.
- Hyderabad: Consumers face the highest rates among major cities, with petrol at ₹115.73 per litre and diesel at ₹103.82 per litre.
- Kolkata: Petrol is sold at ₹113.51 per litre, while diesel is just under the ₹100 mark at ₹99.82 per litre.
- Bengaluru: Petrol stands at ₹111.68 per litre, and diesel is priced at ₹99.56 per litre.
- Chennai: Petrol is available at ₹107.77 per litre, with diesel retailing at ₹99.55 per litre.
What Drives Fuel Prices in India?
Several interconnected factors contribute to the final price consumers pay at the pump:
- International Crude Oil Prices: As India heavily relies on imported crude, global oil prices are the single most significant determinant. Fluctuations in the international market directly impact procurement costs.
- Rupee-Dollar Exchange Rate: Since crude oil is traded in US dollars, a weakening Indian Rupee against the dollar makes imports more expensive, which can translate to higher retail fuel prices.
- Government Taxes: Both central and state governments levy various taxes, including excise duty and Value Added Tax (VAT), on petrol and diesel. These taxes constitute a substantial portion of the retail price and are a primary reason for price variations across different states.
- Transportation Costs: The cost of transporting fuel from refineries to distribution points and then to retail outlets also factors into the final price.
- Demand and Supply: Local demand-supply dynamics can also influence pricing, though to a lesser extent than the other major factors.