Petrol, Diesel Prices Stable in India on January 5, 2026
Fuel prices in India remained largely stable on January 5, 2026, providing some respite to consumers after a period of volatility. This stability is attributed to a combination of factors, including stable taxation policies by the central government and a relative flattening of global crude oil prices.
Current Prices in Major Cities
As of today, petrol prices across major Indian cities are averaging between ₹94.25 and ₹107.5 per liter. Here's a quick look at the petrol prices in some key metropolitan areas:
- Delhi: ₹96.72 per liter
- Mumbai: ₹106.3 per liter
- Kolkata: ₹106.03 per liter
- Chennai: ₹102.74 per liter
- Bangalore: ₹102.86 per liter
These prices reflect the inclusion of state taxes, which contribute to the variations observed across different regions. Diesel prices also reflect a similar stability, mirroring the trends seen in petrol rates.
Factors Influencing Fuel Prices in India
Several factors play a crucial role in determining the price of petrol and diesel in India. These include:
- Global Crude Oil Prices: The cost of crude oil that India imports significantly impacts domestic fuel prices.
- Excise Duty: Levied by the central government, this tax remains uniform across all states.
- Value Added Tax (VAT): VAT varies from state to state, causing price differences across regions.
- Dealer Commission: The commission charged by fuel dealers also contributes to the final price.
- Currency Exchange Rates: Fluctuations in exchange rates affect the cost of importing crude oil.
Global Market Trends
In the international market, the WTI crude index is currently trading around $77.10 per barrel in the Asian session, marking a 0.08% increase since yesterday's closing. Brent crude is trading higher at $75.24 per barrel. These movements reflect a complex interplay of factors, including anticipated U.S. fuel consumption and potential delays in planned output hikes.
Historical Price Trends
Over the years, petrol prices in India have generally seen an upward trend, influenced by government policies, global prices, taxation, and inflation. Recently, the rise of renewable energy in vehicles has begun to impact consumer demand for petrol.
Geopolitical Impacts
Geopolitical events can also have a significant impact on fuel prices. For instance, recent attacks on oil producer Venezuela have raised concerns about potential supply disruptions, which could lead to price spikes.
Impact on Consumers
Stable fuel prices are crucial for managing inflation and providing economic relief to consumers. Fluctuations in fuel costs can affect household budgets and transportation expenses, making price stability a welcome sign for the start of 2026.
