Petrol, diesel prices today (September 26): Check latest rates in Delhi, Mumbai, Chennai, Kolkata & more

Fresh tensions in West Asia and attacks by Houthis on key oil facilities in Saudi Arabia has impacted the global energy supply. Amid the threat of hike in prices, petrol and diesel prices across major cities in India is largely stable on September 26. 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.

Retail fuel prices in major metros

In Mumbai, petrol is available at ₹111.21 per litre 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.

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Meanwhile, the government has no proposal at present to increase petrol and diesel rates despite volatility in global crude oil prices, sources told Business Today.

As of September 26, Brent crude stands at $104.32 per barrel at the time of writing this story, while WTI crude stood at $92.41 per barrel. Crude prices are likely to remain high 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 rising to over $104.32 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.

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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 difference in retail fuel prices.

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.

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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.