Residents across Maharashtra are now facing higher fuel costs as petrol and diesel prices have been revised upward by ₹3 per litre. This significant increase, effective May 15, 2026, marks the first such hike since March 21, 2025, ending a prolonged period of stable rates.
New Fuel Prices in Major Maharashtra Cities
Following the statewide revision, specific rates in key cities are as follows:
- Mumbai: Petrol will now cost ₹106.68/litre, and diesel will be ₹93.14/litre.
- Pune: Petrol rates match Mumbai at ₹106.68/litre, with diesel also at ₹93.14/litre.
- Nashik: Consumers in Nashik will also pay ₹106.68/litre for petrol and ₹93.14/litre for diesel.
While the base hike is uniform across India, the final retail price can vary by city due to local taxes and transportation expenses.
Why the Price Hike Now?
The timing of this fuel price adjustment is closely tied to the recent conclusion of state assembly elections. Historically, fuel prices in India have often been kept constant or even reduced in the lead-up to elections to avoid potential voter dissatisfaction. With polling now complete, the government and state-owned oil marketing companies (OMCs) have begun to pass on accumulated cost pressures to consumers.
Key Factors Driving the Increase:
- Elevated Global Crude Oil Prices: International crude prices have remained high in recent months, exacerbated by disruptions to shipping routes in West Asia and ongoing geopolitical tensions, particularly around the Strait of Hormuz. India, importing a substantial portion of its crude, is highly susceptible to these global fluctuations.
- Weakening Rupee Against the Dollar: The depreciation of the Indian Rupee against the US Dollar directly increases the cost of importing crude oil. Since crude is primarily traded in dollars, a weaker rupee means OMCs pay more in local currency for the same amount of oil, squeezing their profit margins.
- Under-Recoveries by OMCs: According to the Ministry of Petroleum and Natural Gas, OMCs have been absorbing significant "under-recoveries" – the difference between the cost of crude and the retail price – which amounted to approximately ₹26 per litre on petrol and ₹81.90 per litre on diesel last month. The combined daily under-recovery was estimated at ₹2,400 crore, making a price correction inevitable.
Understanding Fuel Price Variations Across Cities
The difference in petrol and diesel prices from one city or state to another is primarily due to the varying tax structures. Both the central and state governments levy taxes (excise duty, VAT) on fuel, which can constitute more than half of the final retail price. State-specific Value Added Tax (VAT) rates are a major reason for price disparities. Additionally, transportation costs from refineries to different distribution points and local demand-supply dynamics can also influence the final price at the pump.