Fuel prices in India are subject to daily revisions, influenced by a complex interplay of international crude oil prices, currency exchange rates, and local taxes. Effective June 2017, petrol and diesel rates are revised every morning at 6 a.m. based on the dynamic fuel pricing method. This system considers factors such as global crude prices, the rupee-dollar exchange rate, demand, and global crude market trade flow. These factors, combined with central excise duty, state value-added tax (VAT), and retailer commissions, determine the final retail price at the pump.
Current Prices in Major Cities
As of today, October 2, 2025, petrol prices in major Indian cities are as follows:
- New Delhi: ₹94.77 per litre
- Mumbai: ₹103.50 per litre
- Kolkata: ₹105.41 per litre
- Chennai: ₹100.80 per litre
- Bangalore: ₹102.92 per litre
- Hyderabad: ₹107.46 per litre
- Ahmedabad: ₹94.49 per litre
Diesel prices are also fluctuating daily. Recent data indicates that diesel prices in India range between ₹78.05 and ₹97.57 per liter.
Factors Influencing Price Variations
Petrol and diesel prices vary across states due to several factors:
- State Taxes: Different states have varying VAT rates on fuel.
- Transportation Costs: The distance fuel travels from refineries to dealers impacts the final price.
- Local Regulations: Varying local regulations also contribute to price differences.
₹5 Cut in Fuel Prices
In a welcome relief to consumers, petrol and diesel prices have been cut by ₹5 across the country. This reduction comes at a time when inflationary pressures have been straining household budgets. The price cut is attributed to the stabilization of global crude oil prices and a relatively strong performance by the rupee.
Following the ₹5 cut, revised prices in some major cities are:
- Delhi: Petrol ₹95 per litre, Diesel ₹88 per litre
- Mumbai: Petrol ₹104 per litre, Diesel ₹95 per litre
Similar price adjustments have been observed in Bengaluru, Chennai, and Kolkata, depending on local tax structures.
Impact of Daily Price Revisions
The daily revision of fuel prices aims to reduce speculative buying and align with global fuel pricing standards. This dynamic pricing method is used in countries like the US, Australia, Japan, and Germany. The Indian government's deregulation of petrol and diesel prices in recent years has given oil marketing companies the freedom to determine prices based on international crude oil prices.
City with the Lowest Prices
Chandigarh currently has the lowest petrol and diesel prices among major cities, with petrol at ₹94.30 per litre and diesel at ₹82.45 per litre.
Conclusion
The ₹5 reduction in petrol and diesel prices offers a respite from rising living costs. While seemingly small, its cumulative effect on household budgets, transportation, and inflation is significant. Daily price revisions reflect the dynamic nature of the fuel market, influenced by global factors and local conditions.
