As of July 5, 2025, fuel prices across India continue to be updated daily, reflecting the dynamic pricing system implemented in June 2017. This system ensures that petrol and diesel prices are revised every morning at 6:00 AM, based on international crude oil prices, exchange rates, and taxes. While prices are updated daily, they have remained relatively stable for the past seven months due to stable taxation policies by the central government.

Current Petrol Prices in Major Cities

Petrol prices vary across major Indian cities due to factors such as state taxes, transportation costs, and local regulations. Here's a look at the current petrol prices in some metropolitan cities:

• New Delhi: ₹94.77 per liter
• Mumbai: ₹103.50 per liter
• Chennai: ₹100.83 per liter
• Kolkata: ₹105.41 per liter
• Bangalore: ₹99.84 per liter
• Hyderabad: ₹107.41 per liter
• Patna: ₹105.18 per liter
• Itanagar: ₹90.62 per liter

Andhra Pradesh continues to have the highest petrol price in India, at ₹109.62 per liter. The lowest petrol price is in Andaman & Nicobar Islands, at ₹82.46 per liter.

Current Diesel Prices in Major Cities

Diesel prices also vary significantly between cities due to similar factors affecting petrol prices:

• New Delhi: ₹87.67 per liter
• Mumbai: ₹90.03 per liter
• Chennai: ₹92.41 per liter
• Kolkata: ₹92.02 per liter
• Bangalore: ₹85.93 per liter

Andhra Pradesh has the highest diesel price at ₹97.44 per liter, while Andaman & Nicobar Islands has the lowest at ₹78.05 per liter.

Factors Influencing Fuel Prices

Several factors influence the retail selling price of petrol and diesel in India:

• Crude Oil Prices: India imports approximately 80% of its oil needs, making it susceptible to international price fluctuations.
• Exchange Rate: The rupee to US dollar exchange rate impacts fuel prices.
• Taxes: Central excise duty and state value-added tax (VAT) are significant components of the final price. The excise duty on petrol is the same across all states.
• OMC Costs: Oil marketing companies (OMCs) refine crude oil into petrol and diesel and then sell it to dealers.
• Dealer Commission: Dealer commissions also factor into the price.
• Transportation Costs: Transportation and freight charges contribute to price variations.

Dynamic Pricing Mechanism

The dynamic pricing mechanism allows for daily revisions that reflect changes in global oil prices and currency exchange rates. This system aims to enhance transparency and limit speculative practices in the fuel market.

Regional Variations and Government Influence

Fuel prices differ from state to state due to variations in VAT and other local taxes. The central government's stable taxation policies have helped maintain price stability in recent months.

Understanding these factors helps consumers stay informed about the fuel prices and their fluctuations across the country.