Fuel Prices in India: A Deep Dive into the City-Wise Trends
In May 2025, fuel prices in India have seen noticeable fluctuations due to a combination of global crude oil price changes, exchange rates, and local taxes. The price of petrol and diesel varies significantly across cities, reflecting local tax policies, transportation costs, and government regulations. Below, we explore the current city-wise fuel prices, helping you understand how much you’re paying at the pump, wherever you are in India.
Current City-Wise Fuel Prices in India
| City | Petrol Price (INR) | Diesel Price (INR) |
|---|---|---|
| New Delhi | ₹104.99 | ₹89.19 |
| Mumbai | ₹112.50 | ₹95.85 |
| Kolkata | ₹108.55 | ₹91.40 |
| Chennai | ₹107.10 | ₹90.10 |
| Bangalore | ₹109.25 | ₹92.00 |
| Hyderabad | ₹107.50 | ₹91.80 |
| Ahmedabad | ₹106.80 | ₹89.50 |
| Pune | ₹111.00 | ₹94.20 |
| Jaipur | ₹106.20 | ₹88.75 |
| Lucknow | ₹105.00 | ₹89.00 |
| Patna | ₹106.50 | ₹89.80 |
What Drives the Fluctuation in Fuel Prices?
Global Crude Oil Prices
The price of crude oil on the international market plays a pivotal role in determining fuel prices in India. When global oil prices rise, it leads to higher costs for importing crude oil, thus increasing the price at the pump.
Local Taxes and VAT
Each Indian state has the authority to set its own taxes on fuel, which is why fuel prices can differ significantly between cities. For instance, cities in states with higher VAT (Value Added Tax) like Maharashtra and Rajasthan tend to have higher fuel prices compared to states like Delhi or Uttar Pradesh, which have lower VAT rates.
Exchange Rates
The Indian Rupee’s value against the US Dollar also impacts fuel prices. If the Rupee weakens, the cost of importing oil rises, which is reflected in the higher price of petrol and diesel.
Transportation Costs
India’s vast geographical expanse means that fuel distribution costs also vary between cities. Cities closer to ports or refineries may see lower transportation costs, which could result in slightly lower prices.
Fuel Price Trends Across India: A Look at the Past Month
Rising Global Oil Prices
Over the past month, global oil prices have shown an upward trend due to a combination of geopolitical tensions in oil-producing countries and a rise in global demand. This has directly influenced the prices of fuel in India, pushing them to new highs in cities like Mumbai and Pune.
Government Interventions
While the Indian government has occasionally adjusted excise duties and VAT rates to provide relief to consumers, there are limits to how much they can intervene. The latest round of price hikes in May 2025 was a result of rising crude prices that could not be fully offset by domestic tax adjustments.
Impact of Elections
In states where elections are being held, fuel prices may fluctuate due to political pressure. For example, in election-heavy states like West Bengal and Uttar Pradesh, there are often temporary reductions in VAT as a part of pre-election promises.
What Does This Mean for You?
Higher Costs for Daily Commuters
With fuel prices constantly rising, daily commuters—especially in metro cities—are feeling the pinch. Those who depend on private vehicles for work or commuting are seeing a substantial rise in their monthly expenses. Public transportation remains an affordable alternative, though overcrowding and delays often make it less appealing.
Impact on Freight and Goods
Rising fuel prices also increase the cost of transportation for goods, leading to higher prices of essential items like vegetables, fruits, and packaged products. This impacts the average consumer, who may have to bear the brunt of price hikes at grocery stores.
Looking Ahead: What’s Next for Fuel Prices in India?
As we move further into 2025, there are predictions of possible fluctuations in fuel prices due to several factors. Experts suggest that global oil prices may stabilize in the coming months, but uncertainties in the global market and changes in currency exchange rates could keep the price of petrol and diesel volatile.
The Indian government’s role in regulating taxes and excise duties will continue to be critical in moderating fuel costs. In the long run, promoting alternative energy sources such as electric vehicles (EVs) may provide a cushion against rising fuel costs.
