As of June 5, 2025, petrol and diesel prices in India remain dynamic, influenced by a combination of global crude oil prices, currency exchange rates, and local taxes. These factors contribute to daily price revisions by oil marketing companies (OMCs) like Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL). While prices are generally steady today, it's essential to understand the components that determine what consumers pay at the pump.

Current Fuel Prices in Major Cities

Here's a snapshot of petrol and diesel prices in some major Indian cities as of today, June 5, 2025:

• Delhi: Petrol is retailing at ₹94.77 per liter, while diesel costs ₹87.67 per liter.
• Mumbai: Petrol is priced at ₹103.50 per liter, and diesel costs ₹90.03 per liter.
• Chennai: Petrol is sold at ₹100.80 per liter, and diesel costs ₹92.39 per liter.
• Kolkata: Petrol is priced at ₹105.41 per liter, and diesel costs ₹92.02 per liter.

It is important to note that these prices are subject to change and may vary slightly across different fuel stations within the same city.

Factors Influencing Fuel Prices

Several elements contribute to the final price consumers pay for petrol and diesel:

• Crude Oil Prices: The cost of crude oil in the international market is a primary driver. Brent crude, a global benchmark, is closely watched. Recent reports indicate that crude oil prices have been fluctuating, influenced by production decisions from OPEC+ countries, particularly Saudi Arabia.
• Exchange Rate: The exchange rate between the Indian Rupee and the US Dollar plays a crucial role. A weaker Rupee against the Dollar makes crude oil imports more expensive, leading to higher fuel prices.
• Taxes and Duties: Both the central and state governments impose taxes on petrol and diesel. The central government levies excise duty, while state governments charge Value Added Tax (VAT). VAT rates vary significantly between states, causing price differences across the country.
• Dealer Commission and Other Costs: The base price also includes refining costs, transportation costs, and dealer commissions, all of which contribute to the final retail price.

Regional Price Variations

Fuel prices are not uniform across India due to the varying VAT rates imposed by different state governments. For instance, Andhra Pradesh currently has some of the highest petrol prices, while other states or union territories may have lower rates due to lower VAT or other local factors. Even amongst state capitals, there are significant price differences.

Dynamic Fuel Pricing

India follows a dynamic fuel pricing system, where OMCs revise prices daily at 6:00 AM. This system allows for the swift reflection of changes in global oil prices and currency exchange rates, ensuring that fluctuations in the international market are passed on to consumers. Consumers can check the latest prices through OMCs' customer care services, mobile apps, or SMS services.

Impact of Government Policies

Government policies, such as changes in excise duty or VAT, can significantly impact fuel prices. For example, a reduction in excise duty can help to lower prices for consumers. The government also considers the impact of tariffs and makes efforts to balance fuel pricing with economic factors.

Tracking Fuel Prices

Consumers can stay updated on the latest fuel prices in their cities through various methods:

• OMC Mobile Apps: IOC (Fuel@IOC), BPCL (Smart Drive), and HPCL (My HPCL) offer mobile apps that provide real-time price updates.
• SMS Services: OMCs provide SMS-based services where consumers can send a message with the dealer code of a petrol pump to receive the latest prices.
• Websites and Online Platforms: Various websites and online platforms, including those of financial news providers, offer daily updates on fuel prices across different cities.