As of August 30, 2025, fuel prices in India remain a crucial aspect of the daily lives of citizens and a key factor in the country's economic landscape. Petrol and diesel rates are updated daily at 6 a.m. , reflecting fluctuations in the global crude oil market and the value of the Indian rupee against the US dollar. These revisions are influenced by a combination of factors, making the fuel market dynamic and responsive to both international and domestic conditions.

Current Fuel Prices in Major Cities

Here’s a snapshot of petrol prices in some of India's major cities as of today:

• Delhi: ₹96.72 per litre
• Kolkata: ₹106.03 per litre
• Mumbai: ₹103.50 - ₹106.31 per litre
• Chennai: ₹100.75 - ₹102.74 per litre
• Bangalore: ₹102.86 per litre
• Jaipur: ₹104.88 - ₹105.4 per litre
• Lucknow: ₹94.73 per litre

It's important to note that these prices may vary slightly depending on the fuel station and location within the city.

Factors Influencing Fuel Prices

Several elements contribute to the final price consumers pay at the pump:

• Crude Oil Costs: India relies heavily on crude oil imports, making international crude oil prices a primary determinant of domestic fuel prices.
• OMC Costs: Oil companies refine crude oil into petrol and diesel and then sell it to dealers.
• 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 across different regions.
• Dealer Commission: Dealer commissions also factor into the final price.
• Rupee-Dollar Exchange Rate: Fluctuations in the exchange rate impact the cost of importing crude oil.

Regional Price Variations

Fuel prices differ from state to state due to variations in state taxes, transportation costs, and local regulations. State governments impose different taxes on fuels, leading to price variations. For instance, prices in Kolkata are notably higher than in Delhi.

Stability and Recent Trends

In recent months, petrol prices in India have remained relatively stable. For example, Mumbai's petrol price has remained unchanged for the past eight months. However, global events and market dynamics can still influence price adjustments.

International Market Influences

The international commodity markets play a crucial role. Recently, there have been strong fund inflows in the Natural Gas segment, with a significant rise in prices. The WTI (West Texas Intermediate) oil index is currently trading around $76.48 per barrel, reflecting a slight decrease. Investors worldwide are closely monitoring factors such as the US Dollar index and upcoming Federal Open Market Committee (FOMC) minutes for directional cues on crude oil demand.

Government Initiatives and Future Outlook

The Indian government's push towards electric vehicles (EVs) is expected to reduce domestic fuel consumption in the long term. However, for the foreseeable future, India will continue to depend on global crude oil markets to meet its energy needs.

Potential Price Drop in Pakistan

In Pakistan, there is anticipation of a decrease in petrol and diesel prices starting September 1, 2025. The price of petrol is expected to drop by Re0.61, while high-speed diesel (HSD) may decrease by Rs3.13 per litre. Kerosene prices are also likely to decrease by Rs1.57 per litre, and light diesel oil (LDO) may become cheaper by Rs2.61 per litre. The Oil and Gas Regulatory Authority (OGRA) will finalize pricing calculations and forward the working paper to the Ministry of Petroleum, which will then share it with the Finance Division. The final decision will be made after consultation with the Prime Minister, and the revised prices will be implemented following an official notification.