Fuel prices remain a significant factor in the household budgets and economic stability of India. As of August 11, 2025, petrol and diesel prices in major Indian cities have seen relative stability, with only minor fluctuations in some areas. This stability is attributed to steady global crude oil prices and the absence of significant changes in government tax policies.
Metro City Prices Today
- New Delhi: Petrol is priced at ₹94.77 per litre, and diesel at ₹87.67 per litre. The petrol rate has remained unchanged for the past seven months.
- Mumbai: Petrol costs ₹103.50 per litre, while diesel is at ₹90.03 per litre. Diesel prices have remained constant for the past seven months.
- Chennai: Petrol is retailing at ₹100.80 per litre. Diesel prices in Chennai were not found in the search results.
- Kolkata: Petrol is priced at ₹103.94 per litre and diesel at ₹92.02 per litre. Diesel rates have remained steady for the past three months.
Factors Influencing Fuel Prices
Several factors contribute to the daily pricing of petrol and diesel in India:
- Global Crude Oil Prices: The cost of crude oil in the international market is a primary driver of domestic fuel prices.
- Rupee-Dollar Exchange Rate: Since crude oil is globally traded in US dollars, the exchange rate between the rupee and the dollar impacts the import cost.
- Taxes and Duties: Central excise duty and state Value Added Tax (VAT) constitute a significant portion of the retail price. These taxes vary across states, causing price differences.
- Transportation Costs: The cost of transporting fuel from refineries or import terminals to various cities also affects the final price.
- Supply and Demand: The demand and supply dynamics in the global and domestic markets play a crucial role in determining fuel prices.
Trends and Analysis
Across the four major metropolitan cities, petrol prices are ranging from ₹94.77 to ₹103.94 per litre, while diesel prices are between ₹87.67 and ₹92.02 per litre. These prices reflect a period of relative stability, with minimal changes observed in recent months.
Impact of Stable Fuel Prices
Stable fuel prices can have several positive effects:
- Household Budgets: Consistent prices help households manage their monthly expenses better.
- Inflation Control: Stable fuel costs can prevent inflationary pressures on the economy.
- Business Planning: Businesses, especially those reliant on transportation, benefit from predictable fuel expenses.
Regional Price Variations
Even with overall stability, regional price variations exist due to differing VAT rates and transportation costs. For instance, different states may have varying tax rates, leading to price disparities even within the same country.
Historical Context
It's worth noting that the dynamic fuel pricing method was introduced in India in June 2017. Under this system, fuel prices are revised daily at 6:00 AM, reflecting changes in global crude oil prices and currency exchange rates. This mechanism aims to enhance transparency and reduce speculative practices in the market.
