Fuel prices across India remained largely stable on May 19, 2025, offering some respite to consumers amidst fluctuating global crude oil prices. This stability follows a period of relative calm in the Indian fuel market, especially since the last significant price revision in March 2024, when petrol prices were reduced by ₹2 per liter.
In the major metropolitan cities, petrol prices are as follows: Delhi (₹94.77 per liter), Mumbai (₹103.50 per liter), Chennai (₹100.93 per liter), and Kolkata (₹105.41 per liter). Diesel prices in these cities are Delhi (₹87.67 per liter), Mumbai (₹90.03 per liter), Chennai (₹92.52 per liter), and Kolkata (₹92.02 per liter). These prices reflect the taxes, transportation costs, and local market conditions that influence fuel rates across different states.
The steady fuel prices can be attributed to the dynamic fuel price methodology adopted by Indian Oil Marketing Companies (OMCs). This methodology factors in international crude oil prices, the exchange rate between the rupee and the dollar, demand expectations, and global crude oil market trade flows. OMCs such as Indian Oil Corporation review and revise domestic fuel prices daily at 6 a.m.
Global crude oil prices have seen volatility. Brent crude, the global benchmark, experienced a 1.1% drop to below $65 per barrel. These fluctuations are influenced by factors such as talks to end the war in Ukraine and adjustments to the US credit rating. Concerns about a potential recession and tariffs impacting demand contribute to market instability.
Since June 2017, India has been revising petrol prices every morning at 6 a.m., a move designed to increase transparency and limit speculative practices. This dynamic pricing mechanism considers fluctuations in international crude oil prices, currency exchange rates, taxes, and local market conditions.
In Uttar Pradesh, petrol prices have seen minor fluctuations. On May 1, 2025, petrol was priced at ₹95.08 per liter, increasing to ₹95.13 per liter by May 19, 2025. Haryana saw a slight decrease in petrol prices over the same period, from ₹95.38 per liter on May 1 to ₹95.35 per liter on May 19.
Fuel prices in India are influenced by a combination of global and local factors. These include the cost of crude oil, the rupee-to-dollar exchange rate, geopolitical events, supply chain issues, and domestic demand. State taxes and transportation costs also contribute to price variations across different regions.
