Fuel prices across major Indian cities remained largely stable on May 23, 2026, experiencing only minor fluctuations. This period of relative calm follows a second significant price hike implemented earlier this week, driven by ongoing volatility in global crude oil markets.
The persistent conflict in West Asia and disruptions to shipping traffic, particularly at the Strait of Hormuz, continue to exert upward pressure on international crude prices. Oil companies had previously revised retail rates upwards on Monday, marking the second increase within a single week.
City-Wise Fuel Prices on May 23, 2026
As of May 23, 2026, petrol in New Delhi was priced at ₹98.64 per litre, with diesel at ₹91.58 per litre, following a rise of 87 paise and 91 paise respectively. Mumbai continues to report higher fuel costs, with petrol retailing at ₹107.59 per litre and diesel at approximately ₹94.08 per litre.
Residents in Hyderabad are seeing petrol prices exceed the ₹111 per litre mark, reaching ₹111.84, while diesel is nearing ₹100, currently at ₹99.95. Kolkata recorded petrol at ₹109.66 and diesel at ₹96.07. Other major cities also reflect these trends:
- Bengaluru: Petrol ₹107.14, Diesel ₹95.04
- Chennai: Petrol ₹104.51, Diesel ₹96.13
Factors Influencing Fuel Costs in India
The retail price of petrol and diesel at the pump is a complex interplay of several global, economic, and domestic factors. The most significant determinant is the international price of crude oil, which serves as the fundamental raw material for both fuels.
Another crucial variable is the rupee-dollar exchange rate. Given India's substantial reliance on imported crude oil, a weakening rupee against the dollar directly increases the cost of procurement, subsequently translating into higher retail fuel prices for consumers.
Additionally, both central and state governments levy various taxes, which form a substantial portion of the final price. This taxation structure is a primary reason why fuel rates can differ significantly from one state to another. Transportation costs and the prevailing demand-supply dynamics within different regions also contribute to the final price consumers pay at the fuel station.