As of March 28, 2025, petrol and diesel prices across major Indian cities are as follows:
| City | Petrol (₹/L) | Diesel (₹/L) |
|---|---|---|
| Delhi | 94.77 | 87.67 |
| Mumbai | 103.50 | 90.03 |
| Kolkata | 105.01 | 91.82 |
| Chennai | 100.80 | 92.39 |
| Hyderabad | 107.46 | 95.70 |
These rates have remained stable since mid-March 2025, with no significant fluctuations reported.
Factors Influencing Fuel Prices in India
Several key factors contribute to the determination of petrol and diesel prices in India:
International Crude Oil Prices: The cost of crude oil in the global market directly impacts domestic fuel prices. Fluctuations in international prices can lead to corresponding changes in India.
Exchange Rates: The value of the Indian Rupee against the US Dollar affects the cost of importing crude oil. A weaker rupee can make imports more expensive, influencing fuel prices.
Taxes and Duties: Both central and state governments levy taxes on fuel, including excise duty and Value Added Tax (VAT). These taxes vary across states, leading to price differences between regions.
Dealer Commissions: Petrol pump dealers receive a commission per liter of fuel sold, which is factored into the retail price.
Logistics and Transportation Costs: The cost of transporting fuel from refineries to distribution points adds to the final price, especially for regions farther from refineries.
Impact of Stable Fuel Prices
The stability in fuel prices observed since mid-March 2025 has several implications:
Economic Predictability: Consistent fuel prices provide businesses with a stable cost structure, aiding in financial planning and budgeting.
Consumer Relief: Stable prices prevent sudden increases in transportation and commuting costs for consumers, contributing to household budget stability.
Inflation Control: Fuel prices significantly influence the cost of goods and services. Stability in these prices helps in controlling overall inflation rates.
Regional Variations and Taxation
It’s important to note that while base prices are influenced by international factors, regional variations primarily stem from differing state taxes and levies. For instance, Mumbai consistently reports higher fuel prices compared to Delhi, largely due to higher state-imposed taxes.
Historical Context
In January 2025, a significant reduction in fuel prices was implemented:
Petrol: Reduced by ₹2 per liter.
Diesel: Reduced by ₹1.50 per liter.
This reduction was attributed to a decrease in international crude oil prices and adjustments in government policies aimed at providing relief to consumers.
Future Outlook
While current prices remain stable, future fluctuations are possible due to:
Global Market Dynamics: Changes in international crude oil demand and supply can impact prices.
Geopolitical Events: Tensions in oil-producing regions may disrupt supply chains, affecting prices.
Policy Changes: Alterations in domestic taxation or subsidy structures can lead to price adjustments.
