The Ever-Changing Fuel Prices in India: A Daily Challenge for Millions
In India, checking fuel prices has become as routine as reading the morning newspaper. With petrol and diesel prices fluctuating daily, millions of Indians are forced to adjust their lives around the unpredictability of fuel rates. But beyond the numbers, lies a deeper story—a story of families, drivers, small businesses, and common citizens striving to make ends meet.
Why Do Fuel Prices Change Every Day?
Fuel prices in India are revised daily at 6 a.m. under the dynamic fuel pricing system introduced in 2017. These rates depend on several factors:
Crude oil prices in the international market
Exchange rate between the Indian Rupee and the US Dollar
Taxes levied by central and state governments
Dealer commissions and transportation costs
This means the fuel cost in Delhi might differ from that in Mumbai or Chennai due to varying VAT and transportation expenses.
The Economic Ripple Effect
Fuel isn’t just about vehicles. It’s the backbone of India’s logistics, agriculture, and public transportation. When diesel prices rise, so does the cost of transporting vegetables, grains, and milk. Auto and cab fares inch upward. Even your morning tea becomes a few rupees costlier due to increased distribution expenses.
For a middle-class family, every extra rupee at the petrol pump means cutting back somewhere else—be it on groceries, outings, or school fees.
Stories from the Streets
Take Anil, an auto-rickshaw driver from Patna, who earns around ₹600 a day. When diesel prices rise by ₹2, he spends an extra ₹40 on fuel daily. That ₹40 may seem small to some, but for Anil, it’s the price of two meals or his daughter’s bus fare to school.
Or Meena, a homemaker from Jaipur, who says, “Earlier, we could take the kids out on weekends. Now, we think twice before taking the scooter out because fuel is expensive.”
City-Wise Fuel Prices Today (7 May 2025)
| City | Petrol Price (₹/litre) | Diesel Price (₹/litre) |
|---|---|---|
| Delhi | 96.72 | 89.62 |
| Mumbai | 106.31 | 94.27 |
| Chennai | 102.74 | 94.33 |
| Kolkata | 105.02 | 92.76 |
| Bengaluru | 101.94 | 87.89 |
| Hyderabad | 109.60 | 97.80 |
Note: These prices are indicative and vary by location and time.
Government Policies and Taxes: A Double-Edged Sword
A significant portion of fuel prices in India is made up of taxes. Both the central and state governments impose excise duties and VAT, contributing to nearly 45–60% of the pump price.
During elections or economic pressure, governments often face calls to reduce taxes to give relief to citizens. While such cuts may offer temporary comfort, the long-term solution lies in a more stable and transparent pricing model.
What Can Be Done?
Increase Transparency: Clearer communication from oil companies and the government on pricing breakdowns.
Promote Alternatives: Encourage use of electric vehicles and public transport.
Review Tax Structure: A unified and fair tax system across states may help normalize prices.
