Fuel prices in India held largely steady on August 7, 2026, with no significant alterations in major metropolitan areas. This consistency comes despite a recent dip in international crude oil prices last week, influenced by developments in the US-Iran situation and renewed hopes for shipping through the Strait of Hormuz.
State-owned Oil Marketing Companies (OMCs) have maintained current rates since May 25, when a previous adjustment saw petrol prices rise by ₹2.61 per litre and diesel by ₹2.71 per litre.
Current Fuel Rates in Key Indian Cities (August 7, 2026)
- 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 ₹97.83 per litre for diesel.
- Hyderabad: Petrol stands at ₹115.43 per litre, and diesel is ₹103.58 per litre.
- Kolkata: Petrol is available at ₹113.51 per litre, with diesel at ₹99.82 per litre.
- Bengaluru: Petrol costs ₹111.68 per litre, and diesel is ₹99.56 per litre.
- Chennai: Petrol is priced at ₹107.76 per litre, and diesel at ₹99.55 per litre.
Notably, petrol prices remain above ₹110 per litre in cities like Bengaluru, Hyderabad, and Kolkata. Diesel prices are generally below ₹100 in these cities, with the exception of Hyderabad.
Understanding Fuel Price Dynamics in India
Several critical factors converge to determine the retail price of petrol and diesel at the pump across India:
Global Crude Oil Prices
The international price of crude oil is the most significant determinant. As the primary raw material, fluctuations in global crude markets directly impact the cost for Indian OMCs.
Rupee-Dollar Exchange Rate
Given India's substantial reliance on imported crude oil, the exchange rate between the Indian Rupee and the US Dollar plays a crucial role. A weaker Rupee makes crude imports more expensive, which can translate to higher retail fuel prices.
Government Taxes and Duties
Both the central and state governments levy various taxes and duties on fuel, constituting a considerable portion of the final consumer price. This multi-layered taxation structure is a primary reason for price disparities between different states and cities.
Logistics and Demand-Supply
Additional factors like transportation costs from refineries to retail outlets, along with local demand-supply conditions, also contribute to the final price consumers pay.