Global Disruptions to Fuel Supplies Raise Concerns Over Rising Petrol and Diesel Prices Ahead of Elections

Fuel Prices in India Remain Steady Amid Global Volatility

Fuel prices in major Indian cities have remained largely unchanged on March 31, 2026, despite ongoing disruptions along key shipping routes and volatility in global crude oil markets. The stability in domestic fuel prices comes at a time when petrol and diesel rates are under close watch ahead of upcoming state elections.

The three major oil marketing companies in India, Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL), revise fuel prices daily to align with global crude oil movements and currency exchange rate fluctuations. Despite continued uncertainty in international energy markets, retail fuel prices have not seen any immediate changes.

In Delhi, petrol continues to be priced at Rs 94.77 per litre, while diesel stands at Rs 87.67 per litre. Prices remain higher in Mumbai, where petrol is retailing at Rs 103.49 per litre and diesel at around Rs 90.03 per litre.

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Petrol prices remain above Rs 100 per litre in most major metro cities, including Mumbai, Bengaluru, Hyderabad, and Kolkata, while diesel prices continue to remain below the Rs 100 mark in these cities.

Fuel prices in India are revised daily based on movements in global crude oil prices and changes in foreign exchange rates. Despite volatility in global crude oil markets, petrol and diesel prices in India have remained largely stable over the past few years. Retail fuel prices have seen limited movement since May 2022, when the central government and several states reduced excise duties and value-added taxes on fuel.

The price of crude oil in international markets is the most significant driver of retail fuel prices in the country, as crude is the primary raw material used to produce petrol and diesel. The rupee-dollar exchange rate also plays an important role, as India imports a large portion of its crude oil requirement. A weaker rupee can increase the cost of imported crude, potentially pushing up fuel prices. Taxes imposed by the central and state governments also form a major component of petrol and diesel prices, leading to variations in fuel rates from state to state. Transportation costs and demand–supply dynamics also influence the final retail price paid by consumers.

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