Fuel prices in India are subject to daily revisions, influenced by a complex interplay of international crude oil prices, currency exchange rates, and domestic taxation policies. As of today, June 19, 2025, petrol and diesel prices reflect these dynamic factors, impacting consumers across various cities.

Current Fuel Prices Across Major Cities:

While specific prices vary from city to city due to local taxes and transportation costs, recent data indicates the following trends:

• New Delhi: Petrol is retailing at approximately ₹94.72 per liter, a figure that has remained relatively stable throughout June 2025. Diesel prices are around ₹87.67 per liter.
• Mumbai: Consumers in Mumbai are paying ₹103.50 for a liter of petrol and ₹90.03 for diesel.
• Chennai: Chennai has seen a slight decrease, with petrol prices at ₹100.90 per liter and diesel at ₹92.02 per liter.
• Kolkata: In Kolkata, petrol is priced at ₹105.41 per liter, while diesel is at ₹92.02 per liter.
• Odisha: The average price for petrol in Odisha is ₹102.63 per litre and Diesel is ₹94.20 per litre.

Factors Influencing Fuel Prices:

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

• Crude Oil Prices: The international price of crude oil is a primary driver. As India imports a significant portion of its crude oil, global price volatility directly affects domestic fuel costs. Geopolitical events, supply-demand dynamics, and future production forecasts all play a crucial role in determining crude oil prices.
• Exchange Rate: The exchange rate between the Indian Rupee (INR) and the US Dollar (USD) is another critical factor. Since crude oil is purchased in USD, a weaker Rupee increases the cost of imports, leading to higher fuel prices.
• Taxes: Both the central and state governments levy substantial taxes on petrol and diesel, including excise duty and Value Added Tax (VAT). Changes in these tax rates can significantly impact the final price paid by consumers.
• Refining Costs: The cost of refining crude oil into usable petrol and diesel also contributes to the overall price.
• Demand and Supply: The basic economic principles of supply and demand also apply to fuel prices. Increased demand, coupled with limited supply, can lead to price increases.
• Commission for dealers: The Oil Marketing Companies or OMCs pay a commission to the fuel dealers.

Impact of Fuel Price Changes:

Changes in fuel prices have a cascading effect on the Indian economy and the daily lives of citizens:

• Inflation: Higher fuel prices increase transportation costs, leading to higher prices for essential goods and services, thus contributing to overall inflation.
• Transportation Costs: Increased fuel costs directly impact transportation expenses for individuals and businesses.
• Consumer Spending: Higher fuel prices can reduce disposable income, potentially impacting consumer spending and economic growth.
• Economic Activity: Fuel prices influence various sectors, including transportation, manufacturing, agriculture, and retail.

Government Policies and Price Determination:

The Indian government plays a significant role in regulating fuel prices. Before 2014, the government directly controlled petrol prices. However, a dynamic fuel pricing method was introduced, allowing state-run oil marketing companies (OMCs) to set petrol and diesel prices. This mechanism aims to align domestic fuel prices with global market trends while maintaining transparency and efficiency in pricing.

The government may also intervene through adjustments in excise duties to cushion the impact of rising international crude oil prices on consumers.

Conclusion:

Petrol and diesel prices in India remain a sensitive issue, with fluctuations affecting the economy and the public. The dynamic pricing mechanism, influenced by global crude oil prices, exchange rates, and domestic taxes, ensures that fuel prices reflect market realities. Understanding these factors is crucial for consumers and businesses to navigate the economic landscape effectively.