Fuel prices across major Indian cities saw minimal changes on August 18, 2026, with state-owned Oil Marketing Companies (OMCs) maintaining rates that have largely been steady since May 25. This comes amidst global oil markets settling lower last week, influenced by hopes for resumed shipping via the Strait of Hormuz following the latest round of the US-Iran situation.
Current Fuel Rates in Key Indian Cities
As of August 18, petrol and diesel prices in India's metropolitan areas continue to reflect a combination of international crude oil costs, the rupee-dollar exchange rate, and various taxes.
- Delhi: Petrol is priced at ₹102.12 per litre, while diesel retails for ₹95.20 per litre.
- Mumbai: Petrol stands at ₹111.21 per litre, with diesel at ₹97.83 per litre.
- Kolkata: Consumers pay ₹113.51 per litre for petrol and ₹99.82 per litre for diesel.
- Chennai: Petrol is ₹107.76 per litre, and diesel is ₹99.55 per litre.
- Bengaluru: Petrol costs ₹111.68 per litre, and diesel is ₹99.56 per litre.
- Hyderabad: Petrol is the highest among these cities at ₹115.69 per litre, and diesel is ₹103.82 per litre.
Many major cities, including Bengaluru, Hyderabad, and Kolkata, continue to see petrol prices above ₹110 per litre. Diesel prices largely remain below ₹100 per litre in most regions, with the notable exception of Hyderabad.
Factors Influencing India's Fuel Prices
The retail price of petrol and diesel in India is a complex calculation, shaped by several interdependent factors:
Global Crude Oil Prices
The international price of crude oil is the single most significant determinant, as it is the primary raw material for both fuels. Fluctuations in global supply and demand, geopolitical events, and output decisions by major oil-producing nations directly impact what India pays for its imports.
Rupee-Dollar Exchange Rate
Given India's heavy reliance on imported crude, the strength of the Indian Rupee against the US Dollar is crucial. A weaker rupee makes crude oil imports more expensive, which can translate into higher retail fuel prices for consumers.
Government Taxes and Levies
Both the central and state governments levy significant taxes on petrol and diesel. These taxes, which include excise duty and Value Added Tax (VAT), constitute a substantial portion of the final retail price and are a primary reason why fuel prices vary considerably from one state to another.
Operational and Transportation Costs
Additional costs, such as freight charges, dealer commissions, and other operational expenses, also factor into the final price consumers pay at the pump. Local demand-supply dynamics can further influence prices in specific regions.