Mumbai continues to bear one of the highest fuel costs in India, with petrol priced at Rs 104.21 per litre and diesel at Rs 92.15 per litre as of May 18, 2025. These figures place Mumbai among the most expensive metro cities in terms of fuel, largely due to state-level taxes and logistical costs. Indian oil marketing companies revise fuel rates daily at 6 AM, in alignment with global crude oil trends and currency exchange fluctuations. This consistently high pricing adds considerable strain to daily travel budgets, particularly for those relying on personal vehicles or taxis in Mumbai.
Delhi, Chennai, and Kolkata Follow with Slightly Lower Rates
While Mumbai leads the list, other major cities aren't far behind. In Delhi, petrol is priced at Rs 94.72 and diesel at Rs 87.62 per litre. Chennai sees petrol at Rs 100.75 and diesel at Rs 92.34, while Kolkata's rates stand at Rs 103.94 and Rs 90.76 respectively. These differences stem from varying state taxes and transportation costs. Even a marginal shift in international crude prices or currency rates can influence the retail cost significantly. Central and state taxes contribute a large share of the fuel price, creating noticeable variation in pricing across different states despite a unified supply chain.
Tier-2 Cities See Price Variation Based on Local Levies
Tier-2 cities such as Ahmedabad, Indore, and Patna show a broad range of prices. In Ahmedabad, petrol costs Rs 94.49 and diesel costs Rs 90.17. Indore posts a notably high Rs 106.48 and Rs 91.88 respectively, while Patna is close behind with Rs 105.58 and Rs 93.80. These cities reflect how regional taxation policies and local logistics affect retail fuel rates. Even cities in close geographic proximity can display wide variations in pricing. Consumers in these areas are especially sensitive to such changes, as daily fuel usage tends to be higher due to longer travel distances and limited public transportation options.
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Southern and Western Cities Show Mixed Trends in Pricing
In Bengaluru, petrol costs Rs 102.92 per litre and diesel Rs 89.02, slightly less than Hyderabad, where petrol is Rs 107.46 and diesel Rs 95.70 - among the highest in the country. Pune and Nashik also show elevated rates: Pune’s petrol is at Rs 104.04 and diesel at Rs 90.57, while Nashik follows with Rs 95.50 and Rs 89.50. The variations suggest that even within states, city-specific tax rates and delivery costs affect pricing. Southern cities typically reflect higher costs due to longer transportation routes from refineries. As a result, the southern and western regions frequently top the charts in fuel pricing.
Smaller Cities Offer Some Relief but Still Show Impact
Cities like Lucknow, Chandigarh, and Surat show relatively lower prices. Lucknow lists petrol at Rs 94.69 and diesel at Rs 87.80. Chandigarh, among the most affordable, sees Rs 94.30 for petrol and just Rs 82.45 for diesel. Surat remains moderate with petrol at Rs 95.00 and diesel at Rs 89.00. These rates provide some relief to residents, but remain subject to volatility. India's fuel pricing system factors in international crude rates, the rupee-dollar exchange rate, refinery costs, and demand-supply dynamics. This structure, though transparent, results in significant price differences across cities, demonstrating how both macroeconomic and regional elements shape what consumers pay at the pump.