As of July 26, 2025, fuel prices across India remain largely stable, with no significant changes observed in major cities. This stability follows the trend of daily price revisions that were introduced in June 2017 to enhance transparency and curb speculative practices.

Current Fuel Prices in Major Cities:

• Delhi: Petrol is priced at ₹94.72 per liter and diesel at ₹87.62 per liter.
• Mumbai: Petrol costs ₹104.21 per liter and diesel ₹92.15 per liter.
• Chennai: Petrol is selling at ₹100.80 per liter, while diesel is at ₹92.39 per liter.
• Shillong: Petrol price is ₹96.36 per liter.

Factors Influencing Fuel Prices in India:

Several factors contribute to the daily fluctuations in petrol and diesel prices in India:

• Global Crude Oil Prices: The price of crude oil in the international market is a primary determinant.
• Rupee-Dollar Exchange Rate: The value of the Indian rupee against the US dollar impacts import costs. A weaker rupee can lead to higher fuel prices.
• Taxes and Duties: Central and state government taxes, including excise duty and Value Added Tax (VAT), constitute a significant portion of the retail price.
• Supply and Demand: Market disequilibrium caused by geopolitical risks, wars, or supply-chain issues can also affect prices.
• Dynamic Fuel Pricing: The dynamic fuel pricing system, implemented in June 2017, allows for daily revisions based on these factors.

Impact of Fuel Prices on the Economy:

Diesel prices, in particular, have a cascading effect on the economy. A rise in diesel prices typically leads to increased transportation costs, which in turn puts upward pressure on commodity prices. To manage inflationary pressures, the Reserve Bank of India (RBI) may adjust interest rates, influencing the cost of borrowing.

Global Context:

In the United States, the average retail diesel price is $3.812 per gallon as of July 21, 2025. This represents a slight increase from the previous week but a decrease compared to the same time last year. These prices are closely monitored due to the significant consumption of diesel by the trucking, freight, and construction industries.

Regional Price Variations:

Fuel prices can vary significantly even within the same country due to local taxes, transportation costs, and competition among fuel retailers. For example, in India, the price of petrol in Sambalpur, Odisha is ₹102.37 per liter, while in Malkangiri, Odisha, it is ₹102.94 per liter. Itanagar currently has the lowest petrol and diesel prices.

Fuel Price Trends and Inflation:

Fuel prices and inflation are closely linked. Higher fuel prices can contribute to higher levels of inflation, while falling fuel prices can help reduce the inflation rate. Governments may also implement measures such as adjusting fuel duty to mitigate the impact of rising prices, as seen in the UK where the fuel duty rate was cut to 52.95p per liter in 2022.

Conclusion:

As of July 26, 2025, petrol and diesel prices remain stable across major Indian cities. These prices are influenced by a complex interplay of global crude oil prices, the rupee-dollar exchange rate, and government taxes. Monitoring these factors is crucial for understanding and predicting future fluctuations in fuel prices and their impact on the broader economy.