Fuel prices in India continue to be a topic of keen interest for commuters and businesses alike. As of October 5, 2025, petrol and diesel rates in major cities reflect a recent change, with a reduction of ₹5 per liter being implemented across the country. This adjustment comes as a welcome relief amidst rising inflationary pressures.

Current Prices in Metropolitan Cities

Here’s a look at the current prices in some of the major metropolitan areas:

• Delhi: Petrol is now approximately ₹95 per liter, and diesel is around ₹88 per liter.
• Mumbai: Petrol rates have decreased to about ₹104 per liter, while diesel is priced near ₹95.
• Kolkata: The price of petrol is ₹104.95, while diesel is trending at ₹91.76 per liter.
• Chennai: Petrol is being sold at ₹101.03 per liter. Diesel prices are trending at ₹92.61 per liter.

It's important to note that these prices may vary slightly depending on local taxes and other factors.

Factors Influencing Fuel Prices

Several factors influence the retail prices of petrol and diesel in India. These include:

• International Crude Oil Prices: Fluctuations in the global crude oil market directly impact domestic fuel prices.
• Exchange Rate: The exchange rate between the Indian rupee and the US dollar plays a crucial role, as crude oil is typically purchased in US dollars.
• Excise Duties and Taxes: The central and state governments impose excise duties and taxes on fuel, which contribute significantly to the final retail price.
• Other Costs: Transportation costs and dealer commissions are also factored into the price.

Recent ₹5 Reduction

The recent reduction of ₹5 in petrol and diesel prices comes after growing public and political pressure to address high fuel costs. With global crude oil prices showing signs of stabilization and a relatively strong performance by the rupee, oil companies found an opportunity to pass on some benefits to consumers. The last time the prices were revised before this cut was in March 2024, when prices fell by ₹2 per litre.

Stability in Fuel Prices

Notably, petrol and diesel prices remained largely stable since May 2022, following tax cuts by the central government and various states. Despite fluctuations in the international market, Indian consumers experienced relative stability in fuel costs.

Impact of the Price Cut

The ₹5 reduction is expected to provide financial relief to households, reduce transportation costs, and potentially ease inflationary pressures. While the impact may seem modest, the cumulative effect on household budgets and the overall economy can be substantial.

Regional Price Variations

Fuel prices vary across different cities and states due to factors such as transportation costs, local taxes, and levies. For example, Chandigarh currently has the lowest petrol price at ₹94.30 per liter, while other cities may have slightly higher or lower rates.

Global Crude Oil Prices

According to a report, the global crude oil price is trading at $64.78 per barrel. Yesterday, the price was $64.60 per barrel. Industry experts continue to monitor these fluctuations and their potential impact on domestic fuel prices.