Petrol and Diesel Price Revision Across Major Cities
Oil marketing companies in India revised petrol and diesel prices across major cities on August 23, 2025. These prices are updated daily at 6 AM based on fluctuations in global crude oil prices and currency exchange rates. This mechanism ensures transparency and fairness, enabling consumers to access the most current fuel prices that reflect international market trends and local tax dynamics.On August 23, 2025, oil marketing companies (OMCs) revised petrol and diesel prices across major cities in India. These daily price updates are announced at 6 AM and reflect changes in global crude oil prices, currency exchange rates, and other market factors to ensure consumers receive accurate and transparent fuel pricing.
Petrol and diesel prices in India are revised daily by oil marketing companies (OMCs) at 6 AM, reflecting fluctuations in global crude oil prices
and currency exchange rates. This dynamic pricing mechanism, introduced in June 2017, ensures that fuel prices at the pump reflect the actual
international market conditions, promoting transparency and preventing artificial shortages or sudden price shocks for consumers. The daily
fuel prices in different cities vary not only due to global factors but also because of local taxes such as excise duty levied by the central
government and value-added tax (VAT) imposed by state governments, along with logistical costs and dealer commissions.
For example, on August 23, 2025,
petrol and diesel prices across major cities showed differences due to these factors, with prices in metro cities like Mumbai, Delhi, Kolkata, Chennai,
and Hyderabad varying accordingly. The pricing formula primarily relies on the Trade Parity Price (TPP), based on the premise that around 80% of India’s
fuel demand is met through imports, thus aligning domestic fuel rates closely with international price trends while considering the exchange rate
of the Indian Rupee against the US Dollar.
Consumers should note that while global crude oil prices largely determine the base price of petrol and diesel, changes in excise duty and state VAT have a
significant influence on the final retail price. When crude prices stabilize, OMCs have room to make policy decisions on reducing or increasing prices in
line with market conditions. This system allows consumers and businesses to better anticipate and manage their expenditure on fuel. Additionally, fuel price
disparities across states arise due to differing VAT rates and local taxes.
Overall, the daily revision system helps maintain price transparency, ensuring that Indian consumers pay rates that fairly reflect global market realities,
government levies, and local variations, thereby balancing the interests of the nation, industries, and everyday users. This mechanism plays a critical role
in the economy given the direct impact of fuel costs on transportation and inflation.
Petrol and diesel prices in India are revised daily by oil marketing companies (OMCs) at 6 AM, reflecting fluctuations in global crude oil prices
and currency exchange rates. This dynamic pricing mechanism, introduced in June 2017, ensures that fuel prices at the pump reflect the actual
international market conditions, promoting transparency and preventing artificial shortages or sudden price shocks for consumers. The daily
fuel prices in different cities vary not only due to global factors but also because of local taxes such as excise duty levied by the central
government and value-added tax (VAT) imposed by state governments, along with logistical costs and dealer commissions.
For example, on August 23, 2025,
petrol and diesel prices across major cities showed differences due to these factors, with prices in metro cities like Mumbai, Delhi, Kolkata, Chennai,
and Hyderabad varying accordingly. The pricing formula primarily relies on the Trade Parity Price (TPP), based on the premise that around 80% of India’s
fuel demand is met through imports, thus aligning domestic fuel rates closely with international price trends while considering the exchange rate
of the Indian Rupee against the US Dollar.
Consumers should note that while global crude oil prices largely determine the base price of petrol and diesel, changes in excise duty and state VAT have a
significant influence on the final retail price. When crude prices stabilize, OMCs have room to make policy decisions on reducing or increasing prices in
line with market conditions. This system allows consumers and businesses to better anticipate and manage their expenditure on fuel. Additionally, fuel price
disparities across states arise due to differing VAT rates and local taxes.
Overall, the daily revision system helps maintain price transparency, ensuring that Indian consumers pay rates that fairly reflect global market realities,
government levies, and local variations, thereby balancing the interests of the nation, industries, and everyday users. This mechanism plays a critical role
in the economy given the direct impact of fuel costs on transportation and inflation.