As of July 9, 2025, petrol and diesel prices in India remain relatively stable across major cities. Fuel prices are revised daily at 6 AM, a practice that was introduced in June 2017 to promote transparency and limit speculation. This dynamic fuel pricing mechanism considers international crude oil prices and the rupee-dollar exchange rate.
Current Prices in Major Cities:
- Delhi: Petrol is priced at ₹94.77 per liter, and diesel costs ₹87.67 per liter. The petrol price in Delhi remained unchanged compared to the previous day.
- Mumbai: Petrol costs ₹103.50 per liter, while diesel is at ₹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 is at ₹92.02 per liter.
- Bangalore: Petrol is ₹102.92 per liter. Diesel is ₹90.99 per liter.
- Hyderabad: Petrol is ₹107.46 per liter and Diesel is ₹95.70 per liter.
Factors Influencing Fuel Prices in India:
Several factors influence the retail prices of petrol and diesel in India. These include:
- Crude Oil Prices: The international price of crude oil significantly impacts fuel prices in India, as India imports a large portion of its crude oil. Fluctuations in crude oil prices occur due to global supply and demand, geopolitical tensions, and future production forecasts. For instance, conflicts like the Russia-Ukraine war and tensions in the Middle East can drive up crude oil prices.
- Excise Duty and VAT: The central government levies excise duty, and state governments impose Value Added Tax (VAT) on fuel. These taxes constitute a significant portion of the retail price. VAT rates vary across states, leading to price differences.
- Rupee-Dollar Exchange Rate: India pays for crude oil imports in US dollars. Therefore, changes in the rupee-dollar exchange rate affect fuel prices. A weaker rupee increases the cost of importing crude oil.
- Refining Costs: The cost of refining crude oil into usable petrol and diesel also contributes to the final price.
- Dealer Commission and Logistics: Oil marketing companies (OMCs) pay commissions to fuel dealers, which are factored into the retail price. Transportation costs and logistics also play a role, with prices potentially higher in remote areas.
- Demand and Supply: The demand for fuel impacts prices. During COVID-19 lockdowns, decreased demand led to lower prices, while increased demand after the easing of restrictions has contributed to price increases.
Dynamic Fuel Pricing:
India follows a dynamic fuel pricing system, where OMCs such as Indian Oil Corporation (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) revise fuel prices daily. This system allows domestic fuel prices to align with global market trends. The OMCs consider factors like international crude oil prices, exchange rates, taxes, and transportation costs when determining daily prices.
Trends and Analysis:
Gasoline rose to $2.19 USD/Gal on July 9, 2025, up 0.19% from the previous day. Over the past month, gasoline's price has risen 5.04%, but it is still 12.84% lower than a year ago.
Fuel prices have remained steady since May 2022, after the central government and various state governments reduced fuel taxes. The current stability reflects a period of relative calm in global crude oil markets and a stable rupee-dollar exchange rate.
