As of August 21, 2025, petrol and diesel prices in India continue to be dynamic, varying across cities and states due to factors such as crude oil costs, state taxes, and transportation expenses. These prices are typically revised daily at 6 a.m. by oil marketing companies (OMCs) to reflect fluctuations in international crude oil prices and exchange rates.

Current Prices in Major Cities

Here's a snapshot of petrol and diesel prices in some of India's major metropolitan areas as of today:

• Delhi: Petrol is priced at ₹94.77 per liter, while diesel stands at ₹87.67 per liter.
• Mumbai: Petrol costs ₹103.50 per liter, and diesel is priced at ₹90.03 per liter.
• Chennai: Petrol is available at ₹100.80 per liter, while diesel costs ₹92.39 per liter.
• Kolkata: Petrol is priced at ₹105.41 per liter, and diesel at ₹92.02 per liter.
• Bangalore: Petrol is at ₹102.92 per liter, with diesel costing ₹90.99 per liter.

It's important to note that these prices are subject to change and may vary slightly between different fuel stations within the same city.

Factors Influencing Fuel Prices in India

Several elements contribute to the retail selling price of petrol and diesel in India:

• Crude Oil Cost: The price of crude oil that India imports from other countries is a primary determinant.
• OMC Costs: The expenses incurred by oil companies in refining crude oil into usable petrol and diesel, along with their profit margins, are factored in.
• Excise Duty: The central government levies excise duty, which remains consistent across all states.
• Value Added Tax (VAT): VAT varies from state to state, causing price differences between locations.
• Dealer Commission: The commission charged by fuel dealers also contributes to the final price.

Impact of Fuel Prices

Rising petrol and diesel prices can have a cascading effect on the economy. Increased transportation costs, driven by higher fuel prices, can lead to inflationary pressures and increased commodity prices. The Reserve Bank of India (RBI) may then modulate interest rates to manage inflation, which in turn can increase borrowing costs.

Dynamic Pricing Mechanism

Since June 2017, India has been following a dynamic pricing mechanism for petrol and diesel, allowing for daily price revisions. This system enables OMCs to promptly adjust prices in response to changes in international crude oil rates, currency exchange rates, and market conditions.

Regional Price Variations

Fuel prices differ across states due to variations in state taxes, transportation costs, and local regulations. For example, Andhra Pradesh currently has the highest diesel price at ₹98.22 per liter, while Andaman & Nicobar (North & Middle Andaman) has the lowest at ₹78.05 per liter.

Global Context

Geopolitical tensions and events in oil-exporting regions can also impact fuel prices. India imports a significant amount of crude oil to meet domestic demand, making it vulnerable to global supply and pricing fluctuations.