Fuel prices remain steady on September 25 in major Indian cities, including Delhi, Mumbai, Kolkata, and Chennai. Petrol rates are ₹94.77 in Delhi, ₹103.50 in Mumbai, ₹105.41 in Kolkata, and ₹100.80 in Chennai. Diesel prices also hold firm, at ₹87.67 in Delhi, ₹90.03 in Mumbai, ₹92.02 in Kolkata, and ₹92.39 in Chennai, showing stability from the previous day.
Dynamic Pricing Reflects Market Movements
India updates petrol and diesel prices daily at 6:00 am based on a dynamic fuel pricing method. This system aligns domestic prices with real-time changes in global oil prices and currency exchange rates, ensuring transparent cost adjustments that reflect market fluctuations rather than fixed rates. This keeps consumers updated on fair retail pricing across states.
Factors Behind Price Variations Across States
Fuel prices in India vary state by state due to differences in local taxes, transportation costs, dealer margins, and refining expenses. Importantly, India relies on imports for over 80% of its oil needs, making international market trends a major influence. Central excise duty and state VAT also shape the final retail prices seen at the pump.
Price Stability and Impact on Consumers
Since December 2024, fuel prices have largely remained stable, offering relief to consumers and businesses dependent on fuel. This steadiness benefits commercial entities that require predictable operating costs while providing commuters with consistent rates. However, regional tax differences mean prices can still vary significantly between cities and states.
