On October 3, 2026, petrol and diesel prices across major Indian cities remained largely unchanged, offering a temporary reprieve to consumers despite a significant rise in global crude oil benchmarks. Brent crude, a key international marker, climbed above $102 per barrel, while WTI crude reached $91.11 per barrel.
Refiners Absorb Rising Costs to Stabilize Fuel Prices
The stability in domestic fuel prices comes at a considerable cost to India's state-run oil marketing companies. These refiners are reportedly incurring daily losses of approximately ₹530 crore, absorbing the full impact of the international price surge for petrol, diesel, and LPG without adjusting retail rates. This widening gap between increasing import costs and stagnant pump prices is eroding their profit margins.
City-Wise Petrol and Diesel Rates on October 3
Retail fuel prices continue to vary across India due to differing state and central government taxes, as well as local transportation charges. Here's a snapshot of rates in major metropolitan areas:
- 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 ₹107.76/litre, Diesel ₹99.55/litre
- Bengaluru: Petrol ₹111.68/litre, Diesel ₹99.56/litre
- Hyderabad: Petrol ₹116.15/litre, Diesel ₹104.23/litre
Factors Influencing Fuel Price Volatility
Several factors contribute to the volatility of global crude oil prices, which directly impact India's significant oil import bill. Geopolitical tensions, such as Saudi Arabia's reported offensive plans against Iran-backed Houthis in Yemen, are adding to market uncertainty. Furthermore, the upcoming US midterm elections in November are expected to contribute to price fluctuations.
For Indian consumers, the rupee-dollar exchange rate is another critical variable. A weaker rupee increases the cost of crude procurement, potentially leading to higher retail fuel prices in the future. While commuters currently face no major shocks at the pump, prices remain elevated compared to previous years. Monitoring local rates is advisable, as city-specific taxes ensure prices differ even within the same state.
Why Fuel Prices Differ Across Cities
The primary reason for varying fuel prices across different cities lies in the taxes levied by both central and state governments, alongside transportation costs and dealer commissions. While the base price of petrol and diesel from oil refineries is uniform nationwide, these local variables significantly influence the final retail price consumers pay at the pump. Prevailing demand-supply conditions also play a role in determining city-specific rates.