Indian consumers saw no change in petrol and diesel prices on September 5, 2026, as state-owned Oil Marketing Companies (OMCs) maintained current rates. This marks a continued period of stability since May 25, when a significant price hike of ₹2.61 per litre for petrol and ₹2.71 per litre for diesel was implemented.
The static domestic fuel prices come against a backdrop of increasing volatility in the international oil market. Global crude oil prices are reportedly heading for their largest weekly gain since July, fueled by renewed hostilities between the US and Iran and concerns over potential disruptions in the critical Strait of Hormuz.
Current Fuel Rates in Key Indian Cities
- Delhi: Petrol is priced at ₹102.12 per litre, while diesel retails for ₹95.20 per litre.
- Mumbai: Residents continue to pay ₹111.21 per litre for petrol and ₹99.82 per litre for diesel.
- Bengaluru, Hyderabad, Kolkata, and Chennai: Petrol prices in these major metropolitan areas remain above ₹110 per litre.
- Diesel Prices: Diesel is below ₹100 per litre in Bengaluru, Kolkata, and Chennai. However, Hyderabad stands out with diesel priced at ₹103.73 per litre.
Factors Influencing Indian Fuel Prices
Several critical factors converge to determine the final price consumers pay at the pump across India:
- International Crude Oil Prices: As India heavily relies on crude oil imports, global price fluctuations have the most significant impact on domestic fuel rates.
- Rupee-Dollar Exchange Rate: A weaker Indian Rupee against the US Dollar increases the cost of importing crude oil, directly affecting retail prices.
- Government Taxes: Both central and state governments levy various taxes, including excise duty and VAT, which constitute a substantial portion of the final price, leading to regional variations.
- Transportation Costs: The cost of transporting fuel from refineries to distribution points also adds to the retail price.
- Demand-Supply Dynamics: Local demand and supply conditions can also play a role in minor price adjustments.
Despite the current stability, the ongoing geopolitical tensions and the upward trend in international oil prices suggest that future adjustments to domestic fuel rates remain a possibility.