As of August 31, 2025, fuel prices across major Indian cities remain unchanged. Oil Marketing Companies (OMCs) have announced the latest petrol and diesel rates, providing some stability at the pump for consumers. Meanwhile, in Pakistan, petrol and diesel prices are expected to decrease slightly from September 1, 2025.
Current Prices in Major Indian Cities
In Delhi, petrol is priced at ₹94.72 per liter, and diesel at ₹87.62 per liter. Mumbai has slightly higher rates, with petrol at ₹104.21 per liter and diesel at ₹92.15 per liter. In Kolkata, petrol costs ₹103.94 per liter, and diesel is at ₹90.76 per liter. Chennai’s prices are ₹100.75 for petrol and ₹92.34 for diesel. These rates reflect the dynamic fuel pricing mechanism, which is updated daily at 6 AM.
Factors Influencing Fuel Prices in India
Several factors influence diesel prices in India, including the price of Brent crude oil, government levies, and the Rupee to US dollar exchange rate. State taxes also vary, causing price differences across states. A rise in diesel prices can increase transportation costs and potentially lead to inflation, which may prompt the Reserve Bank of India (RBI) to increase interest rates, affecting borrowing costs.
Regional Price Variations in India
Among state capitals, Hyderabad has the highest diesel price at ₹95.70 per liter, while Itanagar has the lowest at ₹80.21 per liter. Across all states, Andhra Pradesh has the highest diesel price at ₹97.32 per liter, and Arunachal Pradesh has the lowest at ₹81.88 per liter.
Expected Price Adjustments in Pakistan
In Pakistan, starting September 1, 2025, petrol prices are expected to decrease by Rs0.61 per liter, from Rs264.61 to Rs264.00 per liter. Diesel prices are projected to drop by Rs3.13 per liter, from Rs272.99 to Rs269.86 per liter. Kerosene prices may fall by Rs1.78 per liter to Rs176.70, and light diesel oil (LDO) could decrease by Rs2.61 per liter to Rs159.55 per liter. These adjustments are attributed to downward trends in international crude oil benchmarks and a strengthening of the local currency against the US dollar.
Global Market Impact
International oil market trends, refining margins, and import premiums influence these price adjustments. The Inland Freight Equalization Margin (IFEM), Petroleum Levy (PL), and Climate Support Levy (CSL) also play a role in domestic pricing. However, potential foreign exchange adjustments could impact the final prices. The Ministry of Finance is expected to announce the final decision on these prices.
Other Regional Updates
In Fiji, the Fijian Competition and Consumer Commission announced new fuel and LPG prices effective tomorrow. The price of unleaded petrol will decrease by five cents to $2.56 a liter, and premix will also drop by five cents to $2.40. However, kerosene will rise by four cents to $1.76, and diesel will increase by seven cents to $2.30 a liter. LPG prices are decreasing, with a 12-kilogram cylinder now costing $38.05, down by $1.14.
