On August 19, 2025, fuel prices across India are experiencing mixed trends, influenced by a complex interplay of international market dynamics, government policies, and local factors. Consumers are seeing changes at the pump, reflecting the fluctuations in crude oil prices and the ডলার-Rupee exchange rate.

Current Prices in Major Cities

As of today, August 19, 2025, the diesel price in Mumbai is ₹90.03 per liter. While prices can vary, recent data indicates that the diesel rates in India are currently ranging between ₹78.05 and ₹97.57 per liter. For petrol, the price in Mumbai stands at ₹103.50 per liter. These prices reflect the current market conditions and local taxes.

In Delhi, diesel is priced at ₹87.67 per liter. The petrol rates in Delhi are at Rs 96.72 per litre.

Factors Influencing Fuel Prices

Several factors contribute to the daily fluctuations in petrol and diesel prices in India:

• Crude Oil Prices: The cost of crude oil, which India imports, is a primary driver of fuel prices. Global events, geopolitical tensions, and decisions by oil-producing nations significantly impact crude oil prices.
• Exchange Rate: The Rupee-Dollar exchange rate also plays a crucial role, as a weaker rupee can lead to higher import costs for crude oil.
• Taxes and Duties: Central and state government taxes, including excise duty and Value Added Tax (VAT), constitute a significant portion of the retail price of petrol and diesel. VAT varies from state to state, causing price differences across regions.
• Refining and Distribution Costs: The costs associated with refining crude oil and transporting fuel to retail outlets also influence the final price.
• Dealer Margins: Dealer commissions are factored into the price, though a recent decision by Indian Oil to revise dealer margins is not expected to impact consumer prices.
• Supply and Demand: The fundamental principle of supply and demand affects fuel costs, with prices tending to rise when demand outpaces supply and vice versa.

Regional Price Variations

Fuel prices vary significantly across states due to differences in VAT and other local levies. As of today, August 19, 2025:

• Andaman & Nicobar Islands (Port Blair) have the lowest diesel price in India at ₹78.05 per litre.
• Andhra Pradesh (Sri Sathya Sai) has the highest diesel price in India at ₹98.22 per litre.
• Andaman & Nicobar (South Andaman) have the lowest petrol price in India at ₹82.46 per litre.
• Andhra Pradesh (Tirupati) has the highest petrol price in India at ₹110.34 per litre.

Global Market Trends

Global factors continue to exert pressure on domestic fuel prices. International oil market dynamics, geopolitical tensions, and production decisions by OPEC+ nations all play a role. For instance, aggressive supply growth from OPEC+ is expected to increase global inventory, potentially pulling down prices.

Impact on Consumers and the Economy

Rising fuel prices can have a cascading effect on the economy. Higher transportation costs can lead to increased prices for essential commodities, contributing to inflationary pressures. The Reserve Bank of India (RBI) may respond by modulating interest rates to mitigate the impact of inflation.

Other News

In related news, pump prices of gasoline in the Philippines will be hiked while those of diesel and kerosene will be rolled back for the second straight week on Tuesday, August 19.