As of May 22, 2025, petrol and diesel prices across major Indian cities remain largely stable, with minor fluctuations observed in a few locations. Fuel prices are subject to daily revisions at 6 a.m. by state-run oil marketing companies, taking into account global crude oil trends, foreign exchange rates, and local taxes.

Current Fuel Prices in Major Cities:

• Delhi: Petrol is priced at ₹94.77 per litre, while diesel is available at ₹87.67 per litre.
• Mumbai: Petrol costs ₹103.50 per litre, and diesel is priced at ₹90.03 per litre.
• Chennai: Petrol is retailing at ₹100.90 per litre, and diesel at ₹92.49 per litre.
• Kolkata: Petrol is priced at ₹105.41 per litre, and diesel at ₹92.02 per litre.
• Bangalore: Petrol costs ₹103.02 per litre, and diesel is priced at ₹91.09 per litre.
• Hyderabad: Petrol is available at ₹107.46 per litre, and diesel at ₹95.70 per litre.
• Ahmedabad: Petrol and Diesel are priced at Rs 94.90 and Rs 90.57 respectively.
• Jaipur: Petrol and Diesel are priced at Rs 104.72 and Rs 90.21 respectively.
• Lucknow: Petrol and Diesel are priced at Rs 94.69 and Rs 87.81 respectively.

Factors Influencing Fuel Prices in India:

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

• Global Crude Oil Prices: The cost of crude oil, which India imports from other countries, is a primary determinant of fuel prices. Fluctuations in global crude oil prices directly impact the prices consumers pay at the pump. The average Brent Crude oil price decreased from $71.04 to $66.40 during a recent review period
• Excise Duty: The central government levies excise duty on fuel, which remains uniform across all states.
• Value-Added Tax (VAT): VAT rates vary from state to state, leading to price differences across different regions.
• Dealer Commission: Dealer commissions, which also vary, are factored into the final retail price.
• OMC Costs: Oil companies refine crude oil into petrol and diesel and sell it to dealers, and these costs play a role in price determination.
• Rupee-Dollar Exchange Rate: Exchange rates also affect petroleum prices significantly.
• Transportation Costs: The cost of transporting fuel from refineries to retail outlets is also added to the price.
• Geopolitical Factors: Geopolitical risks, such as wars, can cause market disequilibrium and impact fuel prices.

Dynamic Fuel Pricing:

India follows a dynamic fuel pricing mechanism, which was introduced in June 2017. This system ensures that retail prices of petrol and diesel are revised daily to reflect changes in international oil prices and currency exchange rates. The goal of dynamic fuel pricing is to enhance transparency and limit speculative practices in the market.

Regional Price Variations:

Fuel prices differ across states due to variations in VAT, transportation costs, and other local levies. For example, diesel prices on May 22, 2025, ranged from ₹81.86 per liter in Arunachal Pradesh to ₹97.37 per liter in Andhra Pradesh.

Recent Trends and Analysis:

International crude oil prices have recently shown a declining trend due to rising US inventories, which have increased concerns about excess supply. Broader financial markets have also weakened, contributing to the downward pressure on crude prices. Brent crude has stayed below $65 per barrel after falling around 1% over two prior sessions, while West Texas Intermediate has hovered near $61.

Concerns about a global economic recession, oversupply from non-OPEC countries, and anticipated increases in oil production by OPEC+ members have also contributed to the price adjustments.

Tracking Fuel Prices:

Consumers can track daily fuel price revisions through various channels, including the websites and mobile apps of state-run oil marketing companies like Indian Oil, Bharat Petroleum, and Hindustan Petroleum. These resources provide up-to-date information on petrol and diesel prices in different cities.