Fuel Prices India — How It Works & City Rates

Petrol and diesel prices in India change every day at 6 AM and differ by Rs 10–15 per litre between cities. This guide explains exactly how the pump price is built — crude cost, central excise, state VAT and dealer commission — and why your city's rate differs from the next state's.

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How Fuel Prices Are Calculated in India

The price you pay at the pump has five layers, each set by a different authority:

  1. Base price (international crude): oil marketing companies (IOC, HPCL, BPCL) start from the international crude price in USD per barrel, converted to INR, using a 15-day rolling average of Brent crude.
  2. Freight and refinery cost: shipping, refining and marketing margins add approximately Rs 5–8 per litre.
  3. Central excise duty: Rs 19.90/litre on petrol and Rs 15.80/litre on diesel — fixed and uniform across India.
  4. State VAT: the biggest variable. Maharashtra charges around 26%, Rajasthan around 36%, while Delhi charges around 19.4% — which is why Mumbai petrol runs Rs 10–15 above Delhi.
  5. Dealer commission: approximately Rs 3.75/litre for petrol and Rs 2.52/litre for diesel, fixed by the government.

Why Prices Change Every Day

India moved to Dynamic Fuel Pricing in June 2017. Prices are revised daily at 6 AM based on the 15-day rolling average of international crude prices and the INR-USD exchange rate — before 2017, revisions happened fortnightly. Check live rates for your city any day on the Fuel Price page.

Approximate City-Wise Petrol Rates

CityApprox. petrol priceWhy
Delhi~Rs 94.77/LLowest major metro — low state tax
Mumbai~Rs 103.44/LHigh Maharashtra VAT
Bangalore~Rs 102.86/LKarnataka VAT ~25.9%
Chennai~Rs 101.91/LTamil Nadu VAT ~15% plus surcharge
Hyderabad~Rs 107.41/LTelangana has among the highest VAT
Jaipur~Rs 104.88/LRajasthan VAT at ~36%

These are indicative rates from May 2026; actual prices change daily, so always confirm the live rate for your city.

Cheaper Alternatives: CNG and Electric

CNG is available in 300+ cities and runs roughly 40–50% cheaper per km than petrol, while EVs cost about Rs 1–2/km versus Rs 6–8/km for petrol vehicles — for drivers doing 40+ km a day, EV savings can offset the higher purchase price within 3–4 years. See the full per-km maths in CNG vs Petrol vs Electric. To understand the state-tax mechanics in depth, read why petrol prices differ between states, and for the decade-long price story, see the petrol price history.

Frequently asked questions

Why does the petrol price change every day in India?

India follows the Dynamic Fuel Pricing system introduced in June 2017. Oil marketing companies (IOC, HPCL, BPCL) revise prices daily at 6 AM based on international crude prices, the USD-INR exchange rate and a 15-day rolling average. Before 2017, prices were revised fortnightly.

Why do petrol prices differ between Indian cities?

The main variable is state VAT. Central excise duty and dealer margins are uniform nationwide, but each state sets its own VAT - Telangana around 35%, Rajasthan around 36%, Delhi around 19.4%. That is why Hyderabad petrol can cost roughly Rs 12 more than Delhi on the same day.

How do I check today's petrol price in my city?

Use GaadiInfo's fuel price page for live petrol and diesel prices across Indian cities, updated daily at 6 AM. You can also check the display board at your local fuel pump or the OMC portals.

What is the cheapest fuel option in India?

CNG runs at roughly Rs 2-3 per km versus Rs 6-8 per km for petrol and is available in 300+ cities. Electric vehicles are cheapest at about Rs 1-2 per km but need charging access. Diesel is cheaper per litre than petrol and more efficient on highways.

Will petrol prices come down in 2026?

Prices depend on international crude and the USD-INR rate, both unpredictable. The government can cut central excise duty to provide relief, as it did in 2022 with an Rs 8/litre reduction. Track daily updates on GaadiInfo for real-time changes.