Fuel prices across Indian cities have remained largely stable on Thursday, June 26, 2025. This period of relative stability follows a significant revision in petrol prices in March 2024, when rates were reduced by Rs 2 per liter. Daily price adjustments are influenced by international crude oil prices and the exchange rate of the rupee against the dollar, with changes implemented at fuel stations at 6:00 a.m.

Current Prices in Major Cities

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

Factors Influencing Fuel Prices

Several factors contribute to the daily fluctuations in petrol and diesel prices in India. These include:

• Global Crude Oil Prices: The cost of crude oil in the international market is a primary driver of domestic fuel prices.
• Rupee-Dollar Exchange Rate: Fluctuations in the exchange rate impact the cost of importing crude oil.
• Demand and Supply: Actual and expected demand for fuel, along with trade flows in global crude markets, influence price adjustments.
• Taxes and Levies: Central and state government taxes, as well as other levies, contribute to the final price consumers pay.

Dynamic Pricing Mechanism

Oil marketing companies, such as Indian Oil Corporation, review and revise petrol and diesel prices daily based on the dynamic fuel price methodology. This method considers various factors, including international crude prices, the rupee-dollar exchange rate, and demand-supply dynamics.

Global Market Trends

The global oil market has experienced considerable volatility recently. According to Bloomberg reports, the oil market has seen futures prices fluctuate significantly, with increased volatility and widening timespreads. Geopolitical events, such as the U.S. bombing of Iranian nuclear sites, have also contributed to market instability. However, announcements of tentative ceasefires, such as the one between Iran and Israel, can ease tensions and stabilize prices.

Impact of Government Policies

Government policies, including taxation and fuel duty rates, play a crucial role in determining fuel prices. In the UK, for example, the fuel duty rate was cut to 52.95p in 2022 in response to rising fuel prices following the Russian invasion of Ukraine. The confirmation that this rate would remain in place from Spring 2025 provides some stability for consumers.

Regional Price Variations

Diesel prices vary across different states in India due to factors such as state taxes, transportation costs, and local regulations. For instance, diesel prices in Delhi are among the lowest at Rs 87.67 per liter, while prices in Mumbai are higher at Rs 90.03 per liter.

Impact on Consumers

Stable fuel prices provide relief to consumers and help manage household budgets. Fluctuations in fuel prices can significantly impact transportation costs, affecting the prices of essential goods and services. Monitoring fuel prices and understanding the factors that influence them can help consumers make informed decisions about their fuel consumption.