As of June 22, 2025, petrol and diesel prices across Indian cities remain dynamic, influenced by a combination of global crude oil prices, currency exchange rates, and local taxes. Daily revisions ensure that pump rates reflect current market conditions, a practice in place since June 2017.

Current Prices in Major Cities

Here’s a snapshot of today's fuel prices in some key metropolitan areas:

• Delhi: Petrol is retailing at ₹94.72 per litre and diesel at ₹87.62 per litre.
• Mumbai: Petrol costs ₹103.50 per litre, while diesel is priced at ₹90.03 per litre.
• Chennai: Petrol is available at ₹100.85 per litre, and diesel at ₹92.39 per litre.
• Kolkata: Petrol is priced at ₹103.94 per litre, with diesel at ₹92.02 per litre.
• Bangalore: Petrol is selling for ₹99.84 per litre and diesel at ₹85.93 per litre.
• Hyderabad: Petrol is retailing at ₹107.41 per litre and diesel at ₹95.65 per litre.

These rates reflect the daily adjustments made by oil marketing companies (OMCs) like Indian Oil Corporation (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL).

Factors Influencing Fuel Prices

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

• Global Crude Oil Prices: The cost of crude oil in the international market is a primary driver. Fluctuations due to supply and demand, geopolitical events, and future production forecasts directly impact import costs for India.
• Rupee-Dollar Exchange Rate: A weaker rupee against the dollar increases the cost of importing crude oil, as India pays for a significant portion of its oil in dollars.
• Taxes: Both central and state governments levy significant taxes on petrol and diesel, including excise duty and Value Added Tax (VAT). These taxes contribute substantially to the retail price.
• Refining Costs: The expenses involved in refining crude oil into usable petrol and diesel also affect the final price.
• Dealer Commission and Transportation Costs: Dealer commissions and the cost of transporting fuel from refineries to retail outlets add to the overall price.
• Demand and Supply: Local supply and demand dynamics play a crucial role in determining the petrol rates in India.

Regional Variations

Fuel prices vary across states due to differences in VAT and other local levies. For instance, Andhra Pradesh currently has some of the highest petrol and diesel prices, while Andaman & Nicobar Islands have the lowest. These variations reflect the fiscal policies of individual state governments.

Dynamic Pricing Mechanism

Since June 2017, India has followed a dynamic fuel pricing mechanism, where prices are revised daily at 6:00 AM. This system allows OMCs to adjust prices in response to changes in international crude oil prices and currency exchange rates, ensuring that domestic fuel prices align with global market trends.

Impact of Fuel Prices

Rising fuel prices have a cascading effect on the Indian economy:

• Inflation: Increased transportation costs lead to higher prices for goods and services, contributing to overall inflation.
• Import Bill: Higher crude oil prices increase India's import bill, straining the country's finances.
• Economic Growth: High fuel prices can dampen economic activity by increasing operational costs for businesses and reducing consumer spending.

Government Policies and Initiatives

The government plays a crucial role in regulating fuel prices through taxation policies and oversight by the Ministry of Petroleum and Natural Gas. While deregulation has allowed market forces to play a greater role, the government can intervene through adjustments in excise duties or other measures to stabilize prices.

In conclusion, petrol and diesel prices in India are subject to a complex interplay of global and local factors. The current rates reflect these dynamics, with daily revisions ensuring alignment with prevailing market conditions.