As of August 20, 2025, petrol and diesel prices continue to be dynamic, influenced by a combination of international crude oil prices, currency exchange rates, and domestic tax structures. Daily revisions, a practice known as dynamic fuel pricing introduced in June 2017, aim to enhance transparency and curb speculation.

Factors Influencing Fuel Prices

Several factors contribute to the fluctuations in petrol and diesel rates across India:

• Crude Oil Prices: The cost of crude oil in the international market remains the primary determinant of petrol prices, as petrol is produced through crude oil refining.
• Rupee-Dollar Exchange Rate: The exchange rate between the Indian rupee and the US dollar also plays a crucial role. A stronger dollar typically leads to higher fuel prices in India.
• Taxes and Duties: Central and state government taxes, including excise duty and Value Added Tax (VAT), significantly impact the retail prices of petrol and diesel.
• Global Cues and Demand: Geopolitical events, supply-chain disruptions, and overall fuel demand also influence price revisions.

Metro City Prices

Here's a snapshot of petrol prices in major metro cities as of August 20, 2025:

• Delhi: ₹94.77 per litre
• Mumbai: ₹103.50 per litre
• Kolkata: ₹105.41 per litre
• Chennai: ₹100.80 per litre
• Bangalore: ₹102.92 per litre

It is important to note that these prices may vary slightly depending on the source and location within the city.

Diesel Prices

In Delhi, the diesel price is INR 87.67 per liter as of August 20, 2025. In Mumbai, the diesel price is INR 90.03 per liter. Diesel prices in other major cities include:

• Bangalore: ₹90.99 per litre
• Chennai: ₹92.39 per litre
• Kolkata: ₹92.02 per litre

Regional Price Variations

Fuel prices vary across states due to factors like state taxes, transportation costs, and local regulations. For instance, on August 20, 2025, the highest petrol price among top 28 capital cities was in Patna at Rs 105.60 per litre, while the lowest was in Itanagar at Rs 90.66 per litre. Similarly, the highest diesel price was in Bhubaneshwar at Rs 92.69 per litre, and the lowest was in Itanagar at Rs 80.21 per litre.

Global Market Trends

In the United States, the average gasoline price fell to $2.09 per gallon on August 20, 2025. The U.S. Energy Information Administration (EIA) reported the U.S. average regular gasoline price as $3.125 per gallon on August 18, 2025.

Impact of Fuel Prices

Rising fuel prices can have a cascading effect on the economy. Increased transportation costs, driven by higher diesel prices, can lead to inflationary pressures on commodity prices. This, in turn, may prompt the Reserve Bank of India (RBI) to adjust interest rates to manage inflation.

Tracking Fuel Prices

Consumers can stay updated on the latest fuel prices through various sources, including the websites of oil marketing companies and news sources. These prices are typically revised daily at 6:00 A.M..