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Note: State taxes on petrol vary across India and may include VAT, additional tax, cess, surcharge, road development cess, or other state-specific levies. These taxes are revised by state governments from time to time, which is one of the primary reasons petrol prices differ between states. Source - PPAC – State-wise VAT/Sales Tax Rates
Petrol prices in India are driven by a combination of international crude oil prices, the rupee–US dollar exchange rate, central and state taxes, and pricing decisions taken by Oil Marketing Companies (OMCs). While retail prices differ across states due to varying VAT rates and local levies, the table below highlights the key economic, geopolitical, and policy developments that influenced petrol price trends across India between June 2025 and June 2026.
Petrol prices in India are revised daily and are influenced by a combination of global market movements, domestic taxation, and operational costs. These are the factors that determine the price you pay at the fuel station.
India imports nearly 85% of its crude oil requirement, making international crude prices one of the biggest drivers of petrol prices. When crude oil becomes more expensive globally, the cost of producing petrol also increases.
The OPEC+ alliance periodically decides whether to increase or reduce crude oil production. Lower output generally tightens global supply and supports higher crude prices, while higher production can help ease prices.
Conflicts, sanctions, and disruptions in major oil-producing regions or critical shipping routes can affect global crude supply. Such events often lead to volatility in international oil prices, which eventually influences petrol prices in India.
The retail price of petrol includes Central Excise Duty and State VAT/Sales Tax. Since VAT rates vary from one state to another, petrol prices differ across India even when the base fuel price remains the same.
Crude oil is imported and traded in US dollars. If the Indian Rupee weakens against the US Dollar, importing crude oil becomes more expensive, increasing the cost of petrol.
Fuel demand, refinery maintenance schedules, seasonal consumption, and supply availability all influence pricing. Higher demand during periods of limited supply can put upward pressure on petrol prices.
Before petrol reaches consumers, crude oil must be refined, transported to depots, and delivered to retail outlets. Dealer commissions, freight charges, and other operational expenses form part of the final retail price.
The retail selling price (RSP) of petrol in India is determined through a price build-up that includes the cost of crude oil, refining and freight charges, the margin of Oil Marketing Companies (OMCs), dealer commission, Central Excise Duty, and State VAT/Sales Tax. Since petrol is outside the ambit of the Goods and Services Tax (GST), both the Central and State Governments levy separate taxes on it. This is the primary reason petrol prices differ across states and cities.
The base price comprises the cost of crude oil, ocean freight, insurance, refinery processing, inland freight, and the marketing costs incurred before petrol reaches retail outlets. Since India imports a significant share of its crude oil requirement, international crude oil prices and the Rupee-Dollar exchange rate directly influence this component.
Oil Marketing Companies (Indian Oil, Bharat Petroleum and Hindustan Petroleum) add their marketing margin after refining and distributing petrol. This covers refining, storage, handling, distribution and other operational expenses before fuel is supplied to dealers.
Petrol pump dealers receive a fixed commission determined by Oil Marketing Companies. This amount compensates dealers for operating and maintaining retail outlets and forms part of the retail selling price.
The Central Government levies Excise Duty uniformly across all States and Union Territories. As of 30 July 2026, the Central Excise Duty on petrol is ₹21.90 per litre.
Each State Government levies its own Value Added Tax (VAT) or Sales Tax on petrol. The tax structure differs by state and may include a percentage-based VAT, a fixed amount per litre, cess, surcharge, or a combination of these. Consequently, the retail selling price of petrol varies across states even when the base price remains unchanged.
Based on the official PPAC price build-up, the retail selling price of petrol can be represented as:
This reflects the major components published by PPAC. Actual price build-up also includes freight, insurance and other cost elements within the base price.
Note: This is an illustrative price build-up for explanatory purposes only. The actual retail selling price depends on prevailing crude oil prices, exchange rates, Central Excise Duty, dealer commission, and the applicable VAT/Sales Tax in the respective state.
Petrol prices in India are revised daily at 6:00 AM by Indian Oil (IOCL), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL) based on factors such as global crude oil prices, exchange rates, and government taxes.
Petrol in India is sold through a network of public sector and private fuel retailers. While public sector Oil Marketing Companies (OMCs) continue to operate the largest network of fuel stations across the country, several private companies have also expanded their retail presence in recent years.
IndianOil is India's largest oil marketing company and operates the country's largest network of fuel stations, with 39,000+ retail outlets across urban, rural and highway locations. Besides regular petrol and diesel, many IndianOil outlets offer XP95 premium petrol, XP100 high-octane petrol, CNG, EV charging, convenience stores and vehicle care services.
Bharat Petroleum manages 23,000+ fuel stations across India and is recognised for its Speed range of premium fuels. Many BPCL outlets provide digital payment facilities, quick-service convenience stores, vehicle lubrication services and EV charging infrastructure as part of the company's mobility initiatives.
HPCL operates 23,000+ retail fuel stations nationwide and markets petrol through its Power95 premium petrol brand. Along with conventional fuel retailing, HPCL outlets increasingly offer CNG, EV charging, automated fuel dispensing and other customer convenience services.
Jio-bp, a joint venture between Reliance Industries Limited and bp plc, is one of India's fastest-growing private fuel retailers. Its mobility stations combine petrol, diesel, EV charging, quick-service retail, cafés and vehicle servicing at a single location, with a strong presence on national highways and in major cities.
Nayara Energy operates over 6,500 petrol stations, making it one of India's largest private fuel retail networks. Supported by its 20 MMTPA Vadinar Refinery in Gujarat, the company supplies fuels across the country and continues to expand its retail footprint in Tier II and Tier III markets.
Shell operates a premium network of fuel stations in major Indian cities and along key highways. Its outlets are best known for Shell V-Power premium fuels, consistent fuel quality standards, well-maintained forecourts, convenience stores and customer-focused services, making them a preferred choice for many premium vehicle owners.
Petrol prices do not directly affect motor insurance premiums. Insurance premiums are determined by factors such as the vehicle's make and model, age, Insured Declared Value (IDV), location of registration, claim history, coverage selected, and applicable regulatory guidelines.
However, rising petrol prices may indirectly influence the motor insurance market. Higher fuel costs can encourage some buyers to consider more fuel-efficient vehicles, including CNG, hybrid, or electric vehicles. Since insurance premiums vary by vehicle type, IDV, repair costs, and replacement part prices, the premium for these vehicles may differ from that of conventional petrol cars.
Similarly, petrol prices have no impact on third-party motor insurance premiums. These premiums are regulated by the Insurance Regulatory and Development Authority of India (IRDAI) and are notified separately from fuel prices.
As of 30 July 2026, petrol prices in India vary by city and state. Metro city rates include Delhi (₹102.12), Mumbai (₹112.72), Kolkata (₹113.51), and Chennai (₹107.94) per litre.
The price of 1 litre of petrol in India ranges from approximately ₹82 to ₹111 per litre depending on the city. In Mumbai, it currently stands at ₹111.21 per litre.
As of 30 July 2026, Port Blair in the Andaman and Nicobar Islands has the cheapest petrol in India at around ₹88.66 per litre. The significantly lower VAT in this Union Territory makes it far cheaper compared to mainland Indian cities.
Andhra Pradesh cities like Nellore and Visakhapatnam top the list, with petrol priced as high as ₹110.35 per litre, due to higher state VAT rates.
No. Petrol prices differ across states and even cities due to varying state VAT rates, transportation costs, dealer commissions, and local demand. Prices are also influenced by the Rupee-Dollar exchange rate and international crude oil prices.
Yes. Petrol prices in India are revised daily at 6:00 AM by Oil Marketing Companies (OMCs) based on international crude oil prices, currency exchange rates, and other market factors. This dynamic pricing system has been in place since June 2017.
Each state levies its own Value Added Tax (VAT) on petrol, which varies significantly. For example, Maharashtra charges around 25% VAT plus ₹5.12/litre, keeping Mumbai prices high, while states like Delhi and Chandigarh have lower taxes, resulting in cheaper fuel.
Petrol prices are determined by state-owned Oil Marketing Companies (OMCs) — Indian Oil Corporation (IOC), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL) - based on global crude oil rates, Rupee-Dollar exchange rates, refining costs, and applicable central and state taxes.
Since India imports nearly 85% of its crude oil and pays for it in US Dollars, a weaker Rupee directly increases import costs. This gets passed on to consumers through higher retail fuel prices, making the exchange rate one of the key drivers of petrol price fluctuations in India.
