There has been no significant change in fuel prices across the country for the past several months. On July 14, 2025, the prices of petrol and diesel remained unchanged. Oil marketing companies (OMCs) released the latest rates at 6 AM, but there was no change to provide relief or a shock to customers.
Why prices don't change quickly now
In India, the prices of petrol and diesel are no longer entirely market-based. While they depend on international crude oil prices, central and state government taxes, the rupee-dollar exchange rate, and policy controls also deeply affect their prices.
Oil companies update fuel prices every day at 6 AM. However, retail prices often remain unchanged despite fluctuations in the international market. This is because governments maintain stable rates through tax cuts or price controls.
Know the petrol-diesel rates for July 14 in various cities
Today, July 14, the prices of petrol and diesel in major cities of the country are recorded as follows:
- Delhi: Petrol ₹94.72, Diesel ₹87.62 per liter
- Mumbai: Petrol ₹104.21, Diesel ₹92.15 per liter
- Kolkata: Petrol ₹103.94, Diesel ₹90.76 per liter
- Chennai: Petrol ₹100.75, Diesel ₹92.34 per liter
- Ahmedabad: Petrol ₹94.49, Diesel ₹90.17 per liter
- Bengaluru: Petrol ₹102.92, Diesel ₹89.02 per liter
- Hyderabad: Petrol ₹107.46, Diesel ₹95.70 per liter
- Jaipur: Petrol ₹104.72, Diesel ₹90.21 per liter
- Lucknow: Petrol ₹94.69, Diesel ₹87.80 per liter
- Pune: Petrol ₹104.04, Diesel ₹90.57 per liter
- Chandigarh: Petrol ₹94.30, Diesel ₹82.45 per liter
- Indore: Petrol ₹106.48, Diesel ₹91.88 per liter
- Patna: Petrol ₹105.58, Diesel ₹93.80 per liter
- Surat: Petrol ₹95.00, Diesel ₹89.00 per liter
- Nashik: Petrol ₹95.50, Diesel ₹89.50 per liter
The reason for the difference in these rates across states is the tax structure. Each state levies different taxes on petrol and diesel, which leads to varying prices.
Major factors affecting oil prices
Several factors influence petrol and diesel prices in the country. These primarily include:
Global crude oil prices
The basic raw material for petrol and diesel is crude oil. If the prices of Brent crude or WTI fluctuate in the international market, its impact on prices in India is visible within a few days.
Balance of demand and supply
Sometimes, the demand for diesel increases during festivals, holidays, or the agricultural season, leading to fluctuations in prices. Similarly, prices can go up if there is a shortage in supply.
The position of the rupee against the dollar
India imports more than 80 percent of its crude oil needs. When the value of the dollar increases, imports become expensive, which directly affects retail petrol and diesel prices.
Tax burden
The central government levies excise duty on petrol and diesel, and state governments levy VAT. If the VAT is higher in a state, the price of petrol automatically increases there. For example, petrol is more expensive in Hyderabad and Mumbai compared to other cities due to higher taxes.
Refining and distribution costs
There is a cost involved in refining crude oil to make petrol and diesel. This includes refinery capacity, transportation costs, and storage, among many other factors. All these elements affect the final price.
How oil companies determine rates
The country's three major state-owned oil companies – Indian Oil (IOC), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL) – update fuel prices every morning at 6 AM. These companies determine rates based on international prices, the position of the rupee, taxes, and refining costs.
However, balancing market realities and the government's intentions has also become an important responsibility for these companies.
