How Petrol & Diesel Prices Are Decided in India
Petrol and diesel prices are determined through dynamic fuel pricing, introduced in June 2017. Oil Marketing Companies — IOCL, BPCL, and HPCL — revise retail prices every day at 6 AM based on a 15-day rolling average of international crude oil prices and the INR-USD exchange rate.
What Makes Up the Final Price
The pump price layers: base price (international benchmark) → freight charges → OMC margin → central excise duty → dealer commission → state VAT. State VAT is the biggest variable — why Mumbai pays among the highest prices while smaller states pay less.
CNG and Auto Gas Pricing
CNG prices are fixed by City Gas Distribution companies (IGL, MGL, Adani Gas) under PNGRB oversight. Auto LPG prices are set by OMCs and revised monthly — more stable than petrol and diesel.
Fuel Price Trends in 2026
Prices remain sensitive to OPEC+ supply decisions, global crude benchmarks, and domestic tax policy. Petrol crossed ₹100/litre in several cities during 2021–22 before moderating after excise duty cuts. WiseSeva tracks daily city-level rates so fleet operators and consumers can plan fuel budgets effectively.
