Fuel Prices India — How It Works & City Rates
Daily petrol and diesel prices for all Indian cities, plus a clear explanation of why prices change every day and why your city's rate differs from the next state.
Updated May 2026
Daily
Price revision at 6 AM
₹15–25
State tax variation
500+
Cities tracked
Fuel prices in India are revised daily at 6 AM under the Dynamic Fuel Pricing system introduced in June 2017. The revision is based on a 15-day rolling average of international crude prices and currency exchange rates.
CNG (Compressed Natural Gas) is significantly cheaper per km than petrol or diesel and is available in 300+ cities. Running cost for CNG vehicles is roughly 40–50% lower than petrol.
Electric vehicles have a running cost of ₹1–2 per km vs. ₹6–8 per km for petrol vehicles. If you're buying a new vehicle and drive 40+ km/day, the EV running cost savings offset the higher purchase price within 3–4 years.
How Fuel Prices Are Calculated in India
Base price (international crude)
The starting point is the international crude oil price in USD/barrel, converted to INR. This is set by oil marketing companies (IOC, HPCL, BPCL) based on a 15-day rolling average of Brent crude.
Freight and refinery cost
Shipping, refinery processing, and marketing margins are added. This accounts for approximately ₹5–8 per litre.
Central excise duty
The central government levies excise duty on petrol (₹19.90/litre) and diesel (₹15.80/litre). This is fixed and uniform across India.
State VAT and sales tax
This is the biggest variable. States set their own VAT rates - Maharashtra charges ~26%, Rajasthan ~36%, while Delhi charges ~19.4%. This is why Mumbai petrol is ₹10–15 more expensive than Delhi.
Dealer commission
The petrol pump dealer's commission is approximately ₹3.75/litre for petrol and ₹2.52/litre for diesel - fixed by the government.
Approx. Fuel Prices by City - May 2026
| Delhi - Petrol | ~₹94.77/L | Lowest major metro - low state tax |
| Mumbai - Petrol | ~₹103.44/L | High Maharashtra VAT |
| Bangalore - Petrol | ~₹102.86/L | Karnataka VAT ~25.9% |
| Chennai - Petrol | ~₹101.91/L | Tamil Nadu VAT ~15%+surcharge |
| Hyderabad - Petrol | ~₹107.41/L | Telangana has highest VAT |
| Jaipur - Petrol | ~₹104.88/L | Rajasthan highest VAT at 36% |
| Delhi - Diesel | ~₹87.67/L | Benchmark price |
| CNG - Delhi | ~₹74.09/kg | Most economical fuel option |
Frequently Asked Questions
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Information sourced from official government portals - parivahan.gov.in, morth.nic.in. Process details and fees may vary by state. Verify with your local RTO before proceeding.