As of July 21, 2025, fuel prices across Indian cities have remained largely stable. This follows a period of relative steadiness in fuel prices since May 2022, after reductions in fuel taxes by the central and state governments.
Metro City Prices
Here's a quick look at petrol and diesel prices in major metropolitan cities:
Factors Influencing Fuel Prices
The current stability comes amidst a backdrop of fluctuating global crude oil prices and foreign exchange rates, which are primary determinants of fuel costs in India. Indian Oil Corp., like other oil marketing companies, reviews and adjusts domestic fuel prices daily at 6:00 a.m. based on these factors. This system, known as dynamic fuel pricing, was introduced in June 2017 to enhance transparency and curb speculation.
Several factors influence petrol prices, including:
Global Oil Market
On the global stage, oil prices have experienced volatility, influenced by geopolitical risks in the Middle East. Brent crude traded at $69.33 a barrel on Monday, a 0.07% gain, after a near 12% slide the previous month. West Texas Intermediate crude for August was trading near $67.36. Gasoline fell to $2.15 USD/Gal, down 0.02% from the previous day.
Historical Context
The highest ever average prices in the UK were 191.5p per litre of petrol (on 3 July 2022) and 199.09p per litre of diesel (on 25 June 2022). In February 2016, petrol and diesel prices were at historically low prices, with unleaded petrol at 101.27p per litre and diesel at 100.19p.
Impact of Fuel Prices
Fuel prices have a significant impact on inflation. Higher fuel prices can contribute to higher inflation, while falling fuel prices can reduce the inflation rate. The government levies fuel duty on each litre of fuel sold. The duty rate was cut to 52.95p in 2022, and this rate remained in place from Spring 2025.
