Petrol and Diesel Price in India
From February 2026, Petrol and diesel prices in most of the biggest cities of India start at ₹94.72 to ₹104.21, compared to diesel prices at February at ₹87.62 to ₹92.43. The average monthly fuel price is adjusted annually using world crude oil prices, exchange rates in local currencies, state taxes, state tax policies and central excise taxes, and state-level VAT and levies on the pump.
Know About More: Petrol Price in Mumbai
Today, Petrol and Diesel prices in India
| City/District | Petrol | Diesel |
| Adilabad | 109.65 ₹/L | 97.73 ₹/L |
| Agra | 94.42 ₹/L | 87.47 ₹/L |
| Ahmadnagar | 104.44 ₹/L | 90.96 ₹/L |
| Ahmedabad | 95.00 ₹/L | 90.67 ₹/L |
| Ajmer | 104.69 ₹/L | 90.19 ₹/L |
| Akola | 104.05 ₹/L | 90.62 ₹/L |
| Alappuzha | 106.40 ₹/L | 95.34 ₹/L |
| Aligarh | 95.05 ₹/L | 88.18 ₹/L |
| Alipurduar | 104.75 ₹/L | 91.51 ₹/L |
| Alirajpur | 108.28 ₹/L | 93.61 ₹/L |
Key Factors Affecting Fuel Prices
1. Global Crude Oil Prices
This is because most of India’s crude oil is imported, and the increase or fall in oil prices negatively affects petrol and diesel.
2. INR–USD Exchange Rate
Crude oil comes in US dollars. The Indian rupee loses value, so fuel costs more.
3. Refining and Transportation Costs
Retail prices are also affected by the refinery process costs and fuel delivery to the pump.
4. Government Taxes (Excise Duty & VAT)
The final fuel price remains largely a product of central excise duty and state VAT. The prices are different across states due to different VAT rates.
5. Dealer Commission
The litre commission for fuel station dealers is a fee per litre, and the final price per gallon adds up.
6. International Supply–Demand Conditions
If there is a war, an OPEC decision, or a disruption in supply, crude oil prices can rise or fall.
Tax Structure
1. Central Excise Duty
A fixed tax is incentivised by the Central Government on every litre of petrol and diesel. It is the same in every country.
2. State VAT (Value Added Tax)
Each state taxes its own VAT on fuel; the petrol and diesel prices vary from state to state.
3. Cess and Additional Charges
Special charges or surcharges, or additional costings, can be applied to the retail price by the government.
4. Impact of Taxes on Price
One major component of the pump price is the central excise and state VAT, which often accounts for half of what consumers pay.
Impact on Economy and Consumers
1. Inflation and Cost of Living
High fuel prices increase transportation and production costs, thus higher prices of goods and services. This boosts overall inflation.
2. Transportation and Logistics Costs
Diesel is also an extremely common vehicle in trucks, buses, and commercial vehicles. The logistics charges increase as diesel prices increase; freight costs affect national supply chains affected by the increased cost of diesel.
3. Household Budget Pressure
Families spend more on daily commutes and essential travel. This lowers disposable income for other needs such as food, education and savings.
4. Impact on Businesses
The higher operating costs of fuel sources such as transport, agriculture, aviation and manufacturing are causing the cost of fuel to worsen in sectors associated with fuel, producing a loss of profit margin.
5. Agriculture Sector Effect
Diesel is the energy source for farmers’ engines, irrigation pumps, and transport. High diesel prices directly increase agricultural costs.
6. Broader Economic Slowdown
This is especially so at constant high fuel prices, and can slow economic growth as consumption spending cuts and increases the cost of doing business across sectors.
Conclusion
Petrol and diesel prices continue to affect India‘s economy and everyday life. Since the prices of crude oil are fluctuating across global crude prices, currency and tax structure, fuel costs can be high and differ across states. These prices indirectly impact transport, inflation and household budgets, making fuel a key component in economic planning. In order to avoid fuel prices being too volatile and the economic burden on citizens, a balanced policy is required, and global conditions are well developed to keep it stable.
FAQs
Why are oil and diesel prices different across states?
Each state pays its own taxes, other local taxes, as well as the central excise duty – but prices differ.
How do oil and diesel affect the economy?
The high fuel prices create mobility and production costs that increase inflation and remittances for goods and services. Especially freight, logistics and transport-related diesel prices are particularly associated with diesel prices.
Where can I check today’s petrol and diesel prices?
Prices are updated daily and can be checked on official fuel company sites (IOC, BPCL, HPCL) or on news websites such as IndianPriceUpdate.