Petrol And Diesel Price Today in India: Check Fuel Rates In Major Cities on May 27, 2025

Fuel prices significantly influence household budgets, prompting families to closely monitor price fluctuations due to their volatility and substantial impact on transportation costs.

As of May 27, 2025, petrol prices across different metropolitan cities like Delhi, Mumbai, Chennai, and other major Indian cities vary as they fluctuate due to various reasons.

Petrol and diesel prices have decreased in Chennai, Gurgaon, Jaipur and Lucknow. It has also increased in places like Patna, Thiruvananthapuram, Noida and Bhubaneswar while remaining constant everywhere else. The extent of the fluctuations varies according to the cities.

What Factors Impact Petrol and Diesel Prices

Demand and Supply Mechanism

When there is a mismatch in the demand-supply dynamics, i.e. an increase in local demand while supply remains constant, prices tend to rise. On the other hand, when supply increases more than demand, prices tend to fall. Increasing local and rural demand in India is contributing to the price hike seen in the country.

Geopolitical tensions and conflicts, when escalated in crude oil exporting nations, demand tends to increase in the international market due to the uncertain circumstances. The crude oil exporting nations may also tend to restrict supply to feed the domestic economy first. This shows how intertwined crude oil prices are with the international market.

Government Regulations

The government may enter into trade agreements with crude oil exporting nations, reducing customs duties and therefore reducing the prices for a common middle-class consumer. 

The government views petrol and diesel as revenue-generating tools, as they contribute the most revenue compared to other fuels. Any form of tax hikes or customs will first impact the prices of petrol and diesel.

Anchor in Financial Markets 

When uncertain sentiments lurk in the financial markets, such as economic turmoil, stagflation or recession, investors exit their holdings to position themselves by investing in crude oil, expecting global consumption to rise. The collective investment in the prices forces global prices to skyrocket.

Logistics

The transportation costs of bringing crude oil from depots to cities play an important role in determining prices within the country. This is a key reason why crude oil prices vary between cities.

Exchange Rates

The price of crude oil is determined by the rupee to dollar exchange rate. If global crude oil prices fall, India would not benefit if the rupee is weak against the dollar. The rupee-dollar exchange rate plays a crucial role in determining prices in the local economy.

Petrol and Diesel Today’s Market Outlook and Trends

Petrol and diesel prices move along with the international markets. Within the country, they vary due to different taxation structures between the central and state governments. The cost of crude oil makes up 90% of diesel’s final price, along with factors such as taxes, duties and exchange rates. Crude oil prices move along with petrol and diesel prices.

Global crude oil price volatility emanating from geopolitical tensions has led to fluctuations in diesel prices across India. Rising crude oil prices, a depreciating rupee, tax rates and geopolitical tensions have surged prices, leading to an upward trajectory in the petrol and diesel prices. 

Analysts have predicted that if ongoing geopolitical events, production levels and economic conditions remain, the prices will remain high in the future.

Petrol and diesel prices heavily rely on global market conditions. Governments intervene through tax adjustments and subsidies; it may alter prices, but predicting these interventions is challenging.

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