Fuel prices in India saw little change on July 28, 2026, with state-owned Oil Marketing Companies (OMCs) maintaining rates that have been largely stable since a significant increase on May 25. This comes despite a recent dip in international oil prices, influenced by developments related to the US-Iran conflict and hopes for resumed shipping via the Strait of Hormuz.
On May 25, OMCs had raised petrol prices by ₹2.61 per litre and diesel prices by ₹2.71 per litre, setting the current benchmarks.
Key City Fuel Prices on July 28, 2026
Consumers in major metropolitan areas continued to face high fuel costs, with petrol consistently priced above ₹100 per litre in most cities. Diesel rates generally remained below the ₹100 mark, with a few exceptions.
- Delhi: Petrol retailed at ₹102.12 per litre, while diesel was priced at ₹95.20 per litre.
- Mumbai: Petrol remained above the ₹110 threshold at ₹111.21 per litre, with diesel at ₹97.83 per litre.
- Hyderabad: Petrol was the highest among listed cities at ₹116.77 per litre, and diesel at ₹104.82 per litre.
- Kolkata: Residents paid ₹114.01 per litre for petrol and ₹100.32 per litre for diesel.
- Bengaluru: Petrol stood at ₹110.93 per litre, and diesel at ₹98.80 per litre.
- Chennai: Petrol was priced at ₹107.76 per litre, with diesel at ₹99.55 per litre.
Factors Influencing Fuel Costs in India
The retail price of petrol and diesel in India is a complex calculation, driven by a blend of global, economic, and domestic elements:
- International Crude Oil Prices: As India imports a significant portion of its crude oil, global market rates are the primary determinant of base fuel costs.
- Rupee-Dollar Exchange Rate: Fluctuations in the Indian Rupee against the US Dollar directly impact the cost of crude oil imports, subsequently influencing retail prices.
- Government Taxes: Both central and state governments levy various taxes, including excise duty and Value Added Tax (VAT). These taxes constitute a substantial portion of the final price and are a key reason for price disparities across different states.
- Transportation Costs: The expenses involved in transporting refined fuel from refineries to distribution points also contribute to the final retail price.
- Demand and Supply: Local demand-supply dynamics can also play a role in minor price adjustments within specific regions.