Fuel prices play a vital role in daily life, impacting transportation costs, goods pricing, and overall economic activities. On August 27, 2025, petrol and diesel prices across India have largely remained stable, continuing an extended eight-month stretch of minimal fluctuations due to government tax adjustments and global crude price trends. This detailed newsletter provides a city-wise breakdown of petrol and diesel rates across major Indian cities and key fuel price factors to help consumers stay informed and plan expenditures effectively.
Key Highlights: Fuel Price Snapshot On August 27, 2025
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Daily revision mechanism: Oil marketing companies (OMCs) update fuel prices daily at 6 AM based on global crude trends and forex rates.
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Stable prices: Most metro and tier-1 cities show steady petrol and diesel rates with no significant hikes or drops on August 27.
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Price variation by city/state: Due to differing value-added tax (VAT) and dealer commissions, fuel price variations persist across regions.
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Reduced fuel taxes: Central and various state governments have lowered fuel taxes since May 2022, contributing to price stability.
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Fuel price components: Retail prices factor in refinery costs, excise duty, dealer commission, VAT, and currency fluctuations.
City-Wise Petrol And Diesel Prices For August 27, 2025
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New Delhi: Petrol ₹94.72/litre, Diesel ₹87.62/litre
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Mumbai: Petrol ₹104.21/litre, Diesel ₹92.15/litre
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Kolkata: Petrol ₹103.94/litre, Diesel ₹90.76/litre
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Chennai: Petrol ₹100.75/litre, Diesel ₹92.34/litre
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Bangalore: Petrol ₹102.92/litre, Diesel ₹89.02/litre
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Hyderabad: Petrol ₹107.46/litre, Diesel ₹95.70/litre
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Ahmedabad: Petrol ₹94.49/litre, Diesel ₹90.17/litre
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Jaipur: Petrol ₹104.72/litre, Diesel ₹90.21/litre
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Lucknow: Petrol ₹94.69/litre, Diesel ₹87.80/litre
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Pune: Petrol ₹104.04/litre, Diesel ₹90.57/litre
Understanding The Factors Behind Fuel Price Stability
Since mid-2017, India adopted a daily price revision mechanism aligning retail fuel prices with international benchmarks. This transparent system allows consumers to anticipate price trends. The prolonged steady pricing since May 2022 results from coordinated tax reductions by the central government and multiple states to insulate consumers from global crude volatility.
Fuel pricing also depends heavily on regional VAT rates, which cause variations. For instance, Mumbai’s fuel is priced higher compared to Delhi mainly due to local levies. Dealer commissions and distribution logistics also influence city-specific rates.
Consumer Impact And Market Trends
Stable fuel prices offer respite to consumers amidst rising inflation for other commodities. They also aid businesses dependent on transportation, such as logistics and agriculture, in cost planning. However, experts caution that international tensions and crude price fluctuations may cause future changes.
Technology advancements and push towards electric vehicles (EVs) complement fuel market dynamics, signaling gradual shifts in consumer preferences and policy focus.
Tips For Consumers To Monitor Fuel Prices
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Use official OMC websites and apps for verified daily prices.
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Track historical trends to plan refueling strategically.
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Explore alternative fuels and EV options as a long-term cost-saving measure.
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Take advantage of fuel loyalty programs and digital wallets for discounts.
In summary, India’s fuel prices on August 27 remain largely steady across major cities, balancing global commodity pressures with regional tax strategies. Staying informed about city-wise rates helps consumers and businesses make smarter financial decisions in this critical sector.
Sources: CarDekho, News18, V3Cars, Indian Oil Corporation, Economic Times, India Today
