As of January 10, 2026, fuel prices in India are subject to daily revisions by state-owned oil companies. These revisions are influenced by international crude oil prices and the exchange rate between the rupee and the dollar. While the daily price revisions had been temporarily suspended, the current price adjustments are impacted by state taxes, including Value Added Tax (VAT).

Current Petrol and Diesel Prices in Major Cities:

While specific price changes vary regionally, here are the approximate current rates for petrol and diesel in major Indian cities:

• Delhi: Petrol is ₹96.72 per liter, and diesel is ₹89.62 per liter.
• Mumbai: Petrol is ₹106.31 per liter, and diesel is ₹94.27 per liter.
• Kolkata: Petrol is ₹106.31 per liter, and diesel is ₹92.76 per liter.
• Chennai: Petrol is ₹102.63 per liter, and diesel is ₹94.24 per liter.

It's important to note that these prices are indicative and may vary slightly depending on the specific petrol pump and location within the city.

Factors Influencing Fuel Prices:

Several factors contribute to the fluctuating prices of petrol and diesel in India:

• International Crude Oil Prices: The cost of crude oil in the international market is a primary driver of domestic fuel prices.
• Rupee-Dollar Exchange Rate: Fluctuations in the exchange rate affect the cost of importing crude oil.
• Excise Duty: The central government levies an excise duty on petrol and diesel. The last nationwide revision to excise duty occurred on May 21, 2022, when the Finance Minister reduced the excise duty on petrol by ₹8 per liter and on diesel by ₹6 per liter.
• VAT: State governments impose a Value Added Tax (VAT) on fuel, which varies from state to state, leading to price differences across the country.
• Global events: Tensions in several countries remain elevated. "Both diesel and gasoline MOPS prices have declined this week due to rising availability of refined products and crude oil oversupply concerns, despite geopolitical risks following recent events in Venezuela, increasing tensions between Russia and Ukraine and heightened worries of a military escalation between US, Israel and Iran,” according to Jetti Petroleum president Leo Bellas.

Recent Trends and Market Analysis:

Recently fuel prices were increased in some states such as Gujarat, Chhattisgarh, Madhya Pradesh, Rajasthan, Bihar, and West Bengal, while they were decreased in Maharashtra, Jharkhand, Kerala, Goa, and Assam.

Industry experts are closely monitoring global developments, including geopolitical tensions and supply-demand dynamics, which could impact fuel prices in the coming weeks. According to Jetti Petroleum president Leo Bellas, "the possible further worsening of geopolitical and policy developments can swiftly overturn the current bearish market sentiment and push prices higher, potentially reducing or wiping out the potential rollback on domestic prices next week".

Impact of US Inflation Reports

Investors are closely watching the US consumer and producer inflation reports, anticipating a deceleration in price rises for December. Rahul Kalantri, VP Commodities, Mehta Equities Ltd, expects crude oil prices to remain volatile.