Petrol, diesel prices today (October 1): Check latest rates in Delhi, Mumbai, Chennai, Kolkata & more

Petrol and diesel prices across major cities in India are largely stable on October 1 as global oil prices dropped below $100 per barrel amid indications that the supply from Middle East is rising to near pre-war levels after Saudi Arabia resumed flows through a pipeline that avoids the Strait of Hormuz. The national average petrol price stands at ₹111.21 per litre, while diesel is priced at ₹97.83 per litre.

India’s state-run oil marketing companies are staring at a severe financial squeeze as global crude prices climb rapidly. According to rating agency ICRA, these fuel retailers are losing roughly ₹530 crore every day as pump prices for petrol, diesel and cooking gas remain unchanged despite the international rally.

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Retail fuel prices in major metros

In Mumbai, petrol is available at ₹111.21 per litre, the same as the previous day’s rate. Diesel in the financial capital is priced at ₹97.83 per litre. In Delhi, petrol retails for ₹102.12 per litre, while diesel is being sold at ₹95.20 per litre, reflecting the national capital’s relatively lower fuel costs compared to other metro cities.

The widening gap between rising import costs and stagnant domestic retail rates is eroding retail margins. While international crude continues its upward trajectory, retail prices for petrol, diesel, and LPG have not been adjusted, leaving state refiners to absorb the full impact of the price surge.

As of October 1, Brent crude stands at $97.39 per barrel, while WTI crude stands at $89.60 per barrel at the time of writing this story. Crude prices are likely to remain volatile in the run-up to the US midterm elections in November this year, adding to uncertainty over India's oil import bill and domestic fuel pricing.

What this means for you

Despite Brent crude declining to $97.67 per barrel, fuel prices have remained relatively stable over the past week. The rupee-dollar exchange rate is a key variable, given that India relies heavily on imported crude. When the rupee weakens against the dollar, the cost of procuring crude rises, which can feed directly into higher retail fuel prices.

For daily commuters, this means no major shock at the pump, though prices remain elevated compared to previous years. Consumers should monitor local rates, as city-specific taxes vary even within the same state, leading to differences in retail fuel prices.

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Why fuel prices differ across cities?

Fuel prices vary from city to city primarily because of differences in local state taxes, transportation charges, and dealer commissions. While the base price of petrol or diesel coming out of oil refineries is uniform across the country, local variables dictate the final retail price at the pump.

Taxes levied by both the central and state governments make up a substantial portion of the final price, which is why petrol and diesel rates differ across states and cities. Transportation costs and prevailing demand-supply conditions also factor into the retail price consumers see at the pump.