As of September 29, 2025, fuel prices continue to fluctuate, influenced by a complex interplay of international crude oil prices, currency exchange rates, and government policies. Recent developments show variations in petrol and diesel prices across different cities and regions.
Global and Domestic Factors
Fuel prices in India are affected by several factors. These include the cost of crude oil imports, the expenses of oil marketing companies (OMC), value-added tax (VAT), excise duty, and dealer commissions. Crude oil prices have softened internationally due to easing geopolitical tensions and a better supply-demand balance, with some oil-producing countries increasing production to stabilize prices. A stronger Indian rupee against the US dollar has also made imports cheaper. The central government may also adjust excise duties to ease the burden on consumers, and states may lower VAT on fuels, contributing to price declines.
City-Specific Rates
The petrol price in New Delhi is ₹94.77 per liter. In Mumbai, it costs ₹103.5 per liter, while in Bangalore, the rate is ₹102.92 per liter. Hyderabad has a petrol price of ₹107.46 per liter, and Chennai's rate is ₹101.23 per liter. Other cities include Ahmedabad at ₹94.29 per liter and Kolkata at ₹105.41 per liter. Diesel price in Delhi stands at ₹87.67. Chandigarh saw petrol rates at Rs 94.30 per litre.
Price Revisions and Trends
Fuel prices in India generally revise daily at 6 a.m. This revision considers factors such as global oil prices, currency exchange rates, taxes, and local market conditions.
In Delhi, the diesel price remained unchanged from the previous day, holding steady at ₹87.67. Throughout September 2025, diesel prices in Delhi have fluctuated, with a high of ₹87.68 and a low of ₹87.61.
Economic Impact
Changes in fuel prices have a cascading effect on the economy. A rise in diesel prices, for instance, can increase transportation costs, which in turn puts upward pressure on commodity prices. To mitigate inflationary pressures, the Reserve Bank of India (RBI) may adjust interest rates, leading to a higher cost of borrowing.
Long-Term Considerations
While fluctuations in fuel prices can provide immediate relief or pose challenges, there is an increasing focus on renewable energy and alternative fuels to reduce dependency on petroleum products. Investments in cleaner and more sustainable energy sources by governments and industries worldwide are crucial for navigating future energy needs.
