As of September 24, 2025, petrol and diesel prices across Indian cities remain dynamic, reflecting a combination of international crude oil prices, currency exchange rates, and state-level taxes. These factors contribute to variations in fuel costs from one city to another.

Current Fuel Prices in Major Cities

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

• New Delhi: ₹94.77 per litre.
• Mumbai: ₹103.50 per litre.
• Chennai: ₹100.80 per litre.
• Kolkata: ₹105.41 per litre.
• Hyderabad: ₹107.46 per litre.
• Bangalore: ₹102.92 per litre.
• Ahmedabad: ₹94.3 per litre.
• Chandigarh: ₹94.30 per litre.
• Trivandrum: ₹107.48 per litre.

Diesel prices also vary. For example, in Delhi, the diesel price is ₹87.67 per litre. In Mumbai, the diesel price is ₹90.03 per litre.

It is worth noting that Hyderabad has the highest petrol price among the top cities, while Itanagar has the lowest.

Factors Influencing Fuel Prices

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

• Crude Oil Prices: The cost of crude oil, which India imports, is a primary determinant.
• Rupee-Dollar Exchange Rate: Fluctuations in the exchange rate affect the cost of importing crude oil.
• Government Taxes: Excise duty levied by the central government and Value Added Tax (VAT) imposed by state governments contribute significantly to the retail prices.
• Dealer Commission: The commission charged by fuel dealers also impacts the final price.
• Transportation Costs: The cost of transporting fuel from refineries to retail outlets adds to the price.
• Global Cues and Demand: Global events and the demand for fuel also play a role in price determination.

Dynamic Fuel Pricing

Since June 2017, India has adopted a dynamic fuel pricing mechanism, where prices are revised daily at 6 a.m.. This system aims to reflect real-time changes in crude oil prices and currency exchange rates, increasing transparency and reducing speculative practices.

Regional Price Differences

Variations in VAT across states lead to price differences. States with higher VAT rates generally have higher fuel prices. Transportation costs and other local levies also contribute to these regional disparities.

Global Market Trends

Globally, gasoline prices are influenced by factors such as refining capacity, geopolitical tensions, and inventory levels. Recently, US gasoline futures have been affected by higher crude oil benchmarks and tight refining capacity.

Impact of Fuel Prices

Changes in fuel prices can have a cascading effect on the economy. Rising diesel prices, in particular, can increase transportation costs, leading to inflationary pressures on commodity prices. The Reserve Bank of India (RBI) may then modulate interest rates to mitigate the impact of inflation.