New Petrol and Diesel Rates – In a major relief for millions of commuters and households, fuel prices across India have been slashed drastically starting 18 June 2025. Petrol and diesel rates have dropped significantly due to a sharp fall in global crude oil prices and a favorable rupee-dollar exchange rate. Consumers in both metro and non-metro cities will now pay much less for their daily fuel needs, sparking economic optimism and easing inflationary pressures. This unexpected price cut is expected to reduce transportation costs, provide relief to inflation-hit families, and improve the overall market sentiment.
Why Fuel Prices Have Dropped in India
The recent drop in fuel prices across India is mainly due to a steep decline in global crude oil rates, now trading near $47 per barrel. Additionally, a stronger Indian Rupee and reduced central taxes have allowed oil marketing companies to pass on the benefits to consumers through revised daily pricing.
The sudden drop in fuel prices is linked to several global and domestic developments:
- International crude oil rates dipped to $47 per barrel.
- Strengthening of the Indian Rupee against the US Dollar.
- Adjustments in domestic fuel pricing by major oil marketing companies.
- Reduction in central and state taxes on petroleum products in certain regions.
This coordinated change in global oil dynamics and domestic pricing strategy has brought significant benefits to Indian consumers just ahead of the monsoon season.
Current Petrol Prices in Major Indian Cities (Effective 18 June 2025)
The current petrol prices across major Indian cities have seen a significant drop starting 18 June 2025, bringing much-needed relief to consumers. This nationwide revision follows a fall in global crude oil rates. The new rates vary by city, offering savings of over ₹5 per litre in most metro areas.
| City | Old Petrol Price (₹/Litre) | New Petrol Price (₹/Litre) | Price Change (₹) |
|---|---|---|---|
| Delhi | 94.72 | 89.45 | -5.27 |
| Mumbai | 104.21 | 98.99 | -5.22 |
| Kolkata | 103.94 | 98.68 | -5.26 |
| Chennai | 100.75 | 95.53 | -5.22 |
| Bengaluru | 101.25 | 96.10 | -5.15 |
| Hyderabad | 107.42 | 102.15 | -5.27 |
| Ahmedabad | 96.89 | 91.60 | -5.29 |
| Jaipur | 105.37 | 99.98 | -5.39 |
These new rates reflect the revised fuel pricing as of 18 June, making travel and transportation more affordable across major urban centers.
New Diesel Prices Across Indian Cities (Effective 18 June 2025)
The new diesel prices across major Indian cities have brought a much-needed relief for transporters, daily commuters, and logistics businesses. Effective from 18 June 2025, diesel rates have dropped by over ₹5 per litre in most regions, making fuel more affordable and potentially reducing the cost of goods and public transportation services.
| City | Old Diesel Price (₹/Litre) | New Diesel Price (₹/Litre) | Price Change (₹) |
|---|---|---|---|
| Delhi | 87.62 | 82.10 | -5.52 |
| Mumbai | 92.17 | 86.89 | -5.28 |
| Kolkata | 90.76 | 85.34 | -5.42 |
| Chennai | 93.25 | 87.75 | -5.50 |
| Bengaluru | 91.57 | 86.03 | -5.54 |
| Hyderabad | 94.66 | 89.20 | -5.46 |
| Ahmedabad | 90.51 | 85.12 | -5.39 |
| Jaipur | 95.71 | 90.19 | -5.52 |
This reduction has brought diesel rates to their lowest levels in the last 18 months, especially benefiting transport operators and commercial vehicle owners.
How This Fuel Price Cut Will Impact You
- Lower Transportation Costs: Public transport fares may reduce in some cities.
- Relief for Households: Daily commuting becomes more affordable for families.
- Price Drop in Essentials: Reduced diesel costs could lower logistics prices for essential goods.
- Business Benefits: Small and medium businesses reliant on fuel-based logistics gain a temporary cost edge.
- Boost to Travel Industry: Tour operators and ride-sharing services likely to offer better rates.
Overall, the fuel rate reduction is expected to ease inflation and improve disposable income, especially for middle- and lower-income groups.
Government and Oil Companies’ Role in Fuel Pricing
Fuel prices in India are revised daily based on international crude oil prices and currency exchange rates. Oil marketing companies like Indian Oil, Bharat Petroleum, and Hindustan Petroleum play a key role in implementing these changes.
Government tax structure (excise and VAT) also significantly affects final retail prices. While the centre reduced excise duty earlier this year, several state governments have recently cut VAT to pass on the benefits to end-users.
Market Experts Predict Further Reductions Possible
According to market analysts:
- If crude oil stays below $50 per barrel for the next quarter, further cuts are possible.
- Domestic fuel price volatility will depend on monsoon forecasts, geopolitical developments, and exchange rate trends.
- Oil companies may adopt a cautious approach in passing on future gains to balance global price fluctuations.
Consumers are advised to monitor daily rate updates through official apps or oil company websites.
Fuel Price Trend Over the Last 6 Months
| Month | Petrol Avg Price (₹/L) | Diesel Avg Price (₹/L) |
|---|---|---|
| January 2025 | 98.23 | 90.48 |
| February | 99.11 | 91.60 |
| March | 97.65 | 89.75 |
| April | 95.70 | 88.20 |
| May | 94.05 | 87.65 |
| June | 89.45 | 82.10 |
The sharp decline in June is a direct outcome of favorable global pricing and strategic tax adjustments.
The fuel price slash effective from 18 June 2025 is a welcome move that offers immediate financial relief to crores of Indians. As petrol and diesel prices fall significantly, the ripple effect will likely be seen across transport, goods, and service industries. Consumers are encouraged to stay updated on rates and plan their fuel expenses accordingly.
While the current reduction offers temporary relief, long-term fuel affordability will depend on global oil trends and domestic economic policies.
Frequently Asked Questions (FAQs)
Q1. Why did fuel prices drop on 18 June 2025 in India?
A1. The prices dropped due to a fall in global crude oil rates to $47 per barrel and favorable currency exchange, along with tax cuts and revisions by oil companies.
Q2. How much did petrol and diesel prices fall?
A2. On average, petrol prices dropped by ₹5.20–₹5.50 per litre and diesel prices fell by ₹5.30–₹5.60 per litre across major cities.
Q3. Will this price cut affect the cost of daily goods?
A3. Yes, lower diesel prices can reduce transport costs for goods, potentially lowering the cost of essentials over the next few weeks.
Q4. Can we expect further reductions in fuel prices soon?
A4. If global crude remains low and the rupee remains stable, further cuts are possible, though oil companies may act cautiously.
Q5. Where can I check the latest fuel rates daily?
A5. You can check official fuel rates on apps or websites of Indian Oil, BPCL, and HPCL, which update prices daily at 6 AM.