As of December 23, 2025, fuel prices across India remain varied, reflecting the impact of local supply and demand dynamics. While prices are subject to change, today's rates provide a snapshot of the current fuel landscape in major cities.

Current Petrol Prices in Major Cities:

• Delhi: ₹96.72 per liter
• Kolkata: ₹106.03 per liter
• Mumbai: ₹106.31 per liter
• Chennai: ₹102.74 per liter

These prices highlight the variations that exist across different metropolitan areas. Several factors contribute to these differences, including local taxes, transportation costs, and the competitive landscape of fuel retailers.

Factors Influencing Fuel Prices in India:

• Crude Oil Prices: India imports a significant portion of its crude oil, making it susceptible to fluctuations in the international market.
• Taxes and Duties: Both central and state governments levy taxes on fuel, which can significantly impact the final price for consumers.
• Demand and Supply: Local demand-supply dynamics play a crucial role in determining prices in specific cities.
• Refining Costs: The cost of refining crude oil into usable petrol and diesel also contributes to the overall price.
• Dealer Commissions: Commissions paid to fuel dealers are factored into the retail price.

Global Context and Recent Trends:

Global oil prices have shown signs of softening due to oversupply concerns and anticipation of a potential Russia-Ukraine ceasefire, which could restore disrupted Russian oil flows. Refineries returning from maintenance have also eased tight supply conditions. Moreover, expectations of increased exports from China and weaker global gasoline demand during the winter season have contributed to the downward pressure on prices.

Impact on Consumers:

Fuel prices directly affect household budgets and transportation costs. Stable or decreasing fuel prices can provide relief to consumers, especially during peak travel periods like the Christmas season. Conversely, rising prices can strain household finances and potentially contribute to inflationary pressures.

Government Policies and Market Dynamics:

The Indian government plays a crucial role in influencing fuel prices through taxation and regulation. Stable taxation policies can help maintain price stability, while adjustments to excise duties and VAT can have a direct impact on retail prices. The government also monitors the market to ensure fair competition and prevent price gouging.

Future Outlook:

Experts anticipate that international oil prices will continue to fluctuate, influenced by factors such as geopolitical events, production levels, and global demand. The Energy Information Administration (EIA) projects that Brent crude oil spot prices will average $74 per barrel in 2025, compared to $80 per barrel in 2024, indicating a potential for continued price moderation.

Note: Fuel prices are dynamic and subject to change based on various market factors. Consumers are advised to check with local fuel retailers for the most up-to-date prices in their respective cities.