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Mon, 25 May 2026
01:55:08 am
Mon, 25 May 2026
01:55:08 am
Synopsis
Petrol & Diesel Prices in India Today (25 May 2026): Check latest state-wise fuel rates, city-wise petrol and diesel prices, crude oil impact, VAT structure, inflation outlook, and India fuel market analysis.
India’s fuel market has entered a highly volatile phase as petrol and diesel prices continue rising across multiple states following recent retail price revisions by Oil Marketing Companies (OMCs). Surging Brent crude prices, geopolitical instability in West Asia, rupee weakness, and elevated state-level VAT structures are collectively driving fuel inflation higher across the country.
Brent crude prices are currently hovering near the critical $100–110 per barrel range amid escalating concerns surrounding the Strait of Hormuz, one of the world’s most important oil transit corridors. Since India imports nearly 85% of its crude oil requirements, the domestic fuel market remains highly exposed to global energy shocks.
Retail petrol prices have now crossed ₹110 per litre in several Indian states, while diesel prices continue climbing steadily across logistics-heavy regions.
| Fuel Type | Approx National Range |
|---|---|
| Petrol Price | ₹97 to ₹115 per litre |
| Diesel Price | ₹89 to ₹103 per litre |
| Brent Crude | Near $100–110/barrel |
| USD/INR Trend | Weak Rupee Supporting Higher Import Costs |
| State / Region | Petrol Price | Diesel Price | Key Pricing Driver |
|---|---|---|---|
| Andhra Pradesh | ₹113–115 | ₹101–103 | Highest effective VAT burden |
| Telangana | ₹109–111 | ₹98–100 | Dealer loading + high VAT |
| Maharashtra | ₹108–109 | ₹97–99 | Elevated state taxation |
| Rajasthan | ₹107–109 | ₹96–98 | Historically high VAT structure |
| Karnataka | ₹106–108 | ₹96–98 | State sales tax burden |
| West Bengal | ₹105–108 | ₹94–97 | Local taxes + logistics |
| Tamil Nadu | ₹103–105 | ₹94–96 | VAT impact |
| Bihar | ₹110+ | ₹98–100 | Aggressive VAT structure |
| Uttar Pradesh | ₹100–102 | ₹92–94 | Moderate tax structure |
| Delhi NCR | ₹99–100 | ₹92–93 | Lower VAT benchmark |
| Goa | ₹99–100 | ₹91–93 | Lower state levies |
| Chandigarh | ₹97 | ₹89–91 | One of India’s cheapest urban zones |
| Andaman & Nicobar | ₹85–87 | ₹80–82 | Special tax regime |
| City | Petrol Price | Diesel Price |
|---|---|---|
| Delhi | ₹99.5 | ₹92.5 |
| Mumbai | ₹108.4 | ₹97–99 |
| Kolkata | ₹105–108 | ₹94–97 |
| Chennai | ₹103–105 | ₹94–96 |
| Bengaluru | ₹106–108 | ₹96–98 |
| Hyderabad | ₹109–111 | ₹98–100 |
| Jaipur | ₹107–109 | ₹96–98 |
| Patna | ₹110+ | ₹98–100 |
| Lucknow | ₹100–102 | ₹92–94 |
| Guwahati | ₹102–104 | ₹94–96 |
| Srinagar | ₹102–105 | ₹93–95 |
| Port Blair | ₹85–87 | ₹80–82 |
| Region | Current Trend | Key Observation |
|---|---|---|
| South India | Expensive | Higher VAT structures and dealer premiums |
| Western India | Elevated | Strong urban consumption and state taxes |
| Northern India | Moderately High | Seasonal logistics and freight impact |
| Eastern India | Volatile | Freight and infrastructure-linked costs |
| Union Territories | Lower Prices | Reduced taxation structures |
Fuel prices in India vary sharply because petrol and diesel remain outside the GST framework. State governments continue imposing different VAT structures, local cesses, and additional levies.
| Factor | Impact on Prices |
|---|---|
| State VAT | Largest source of price variation |
| Distance from Refineries | Higher inland freight costs |
| Urban Local Taxes | Metro cities face additional cess |
| Fiscal Dependence | High-debt states maintain elevated taxes |
| Demand Density | High-consumption states maintain wider margins |
| Indicator | Current Status | Impact |
|---|---|---|
| Brent Crude | Extremely Strong | Driving global fuel inflation |
| Rupee Movement | Weak | Raising import costs |
| OMC Margins | Recovering | Retail hikes supporting balance sheets |
| State VAT Structure | Elevated | Keeping pump prices high |
| Logistics Costs | Rising | Supporting diesel inflation |
| Geopolitical Risk | High | Fuel volatility intensifying |
The recent fuel price surge is primarily linked to rising international crude oil prices and geopolitical tensions impacting global energy supply chains.
India imports a large portion of its crude oil requirements, making domestic fuel prices highly sensitive to global market movements.
The biggest trigger behind the current fuel price surge is escalating geopolitical instability involving Iran and rising tensions around the Strait of Hormuz.
This corridor handles nearly:
Any disruption in this region immediately impacts global crude benchmarks.
Brent crude prices are approaching the psychologically critical $100–110/barrel range.
Analysts warn that if tensions escalate further:
Since crude oil is dollar-denominated:
Even stable crude prices can keep domestic fuel elevated if INR weakens further.
Oil Marketing Companies including:
had absorbed pricing pressure for extended periods to limit retail inflation.
Recent fuel price revisions are helping:
Petrol and diesel taxes remain among the largest revenue sources for Indian states.
Many states continue resisting GST inclusion because fuel taxes support:
| Cost Component | Approx Value |
|---|---|
| Crude Oil + Refinery Cost | ₹55–58 |
| Freight & OMC Processing | ₹4–5 |
| OMC Margin | ₹2–3 |
| Central Excise Duty | ₹19–20 |
| Dealer Commission | ₹4–4.5 |
| Delhi VAT | ₹13–15 |
| Final Retail Price | ₹99–100 |
| Cost Component | Approx Value |
|---|---|
| Base Refinery Cost | ₹57–60 |
| Freight & Handling | ₹4 |
| Excise Duty | ₹15–16 |
| Dealer Commission | ₹2.5–3 |
| VAT | ₹10–12 |
| Final Retail Price | ₹92–93 |
Taxes still account for:
This explains why retail prices remain elevated even during temporary crude corrections.
| Sector | Impact Severity |
|---|---|
| Transportation | Very High |
| Food Logistics | High |
| Aviation | High |
| FMCG Distribution | Moderate to High |
| Agriculture | High |
| Construction | Moderate |
| E-commerce Delivery | Moderate |
Rising petrol and diesel prices eventually impact:
Diesel inflation remains especially critical because it powers:
If Brent crude stabilizes near $100–105/barrel:
If Middle East tensions escalate sharply:
India’s fuel market in 2026 is no longer being driven solely by domestic tax structures. The current cycle represents a combination of:
The widening price gap between low-tax and high-tax states highlights the fragmented nature of India’s petroleum pricing system.
Unless:
petrol and diesel inflation is likely to remain a major macroeconomic challenge for India through mid-2026.
Petrol prices in India currently range between ₹97 and ₹115 per litre depending on the state and local tax structure.
Andhra Pradesh remains among the costliest fuel markets with petrol prices crossing ₹113–115 per litre.
Different VAT rates, local cesses, freight costs, and dealer margins cause fuel prices to vary across states.
Prices are rising due to:
Port Blair and Chandigarh currently remain among the cheapest fuel markets in India.
Diesel powers transportation, agriculture, logistics, and industrial operations, making it a key inflation driver.
Yes, if crude oil prices continue rising or Middle East tensions escalate, further fuel price hikes remain possible.
State governments rely heavily on fuel taxes for revenue generation, making GST inclusion politically difficult.
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