Brent crude oil has crashed to $73.74 per barrel — its lowest level since before the US-Iran conflict began on February 28, 2026. That is a 42% fall from the $126 war-peak. Petrol and diesel prices in India, however, have not moved since the government’s last revision. Here are today’s latest fuel prices across major Indian cities, and the critical question: will there be a price cut in July?
Petrol & Diesel Prices — June 27, 2026
| City | Petrol (₹/litre) | Diesel (₹/litre) |
|---|---|---|
| Delhi | 94.72 | 87.62 |
| Mumbai | 104.21 | 92.15 |
| Bengaluru | 102.86 | 88.94 |
| Chennai | 100.75 | 92.35 |
| Hyderabad | 111.48 | 103.82 |
| Kolkata | 105.01 | 91.82 |
| Ahmedabad | 96.54 | 89.37 |
| Pune | 104.41 | 91.25 |
| Jaipur | 106.89 | 92.03 |
| Lucknow | 95.28 | 88.76 |
Why Are Indian Fuel Prices Not Falling Despite Cheap Crude?
India’s fuel pricing formula has two components the public often misses: taxes and the OMC (oil marketing company) under-recovery from the war period.
When crude was above ₹100/barrel from March to May 2026, HPCL, BPCL, and IndianOil sold petrol and diesel below their cost to avoid fanning inflation. This created under-recoveries — losses that the OMCs are now recovering silently as crude falls. Rather than immediately passing the crude crash to consumers, OMCs are first restoring their balance sheets.
Additionally, central excise duty on petrol is ₹19.90/litre and on diesel ₹15.80/litre. State VAT adds another ₹8–25/litre depending on the state. Taxes make up 45–55% of the final petrol price. Even if crude falls to $60, the base price for consumers remains high due to this tax structure.
Will There Be a Fuel Price Cut in July 2026?
The answer depends on two factors:
1. OMC under-recovery recovery period: Industry estimates suggest OMCs need at least 45–60 days of crude below $80 before they return to profit on current fuel prices. Crude fell below $80 on June 12. That means OMCs may be back in the black by late July or August.
2. Political calendar: State assembly elections in Maharashtra and Jharkhand are expected in Q4 2026 (October–November). The government historically cuts fuel prices ahead of elections. This makes an August–September fuel price cut more likely than July.
Bottom line: A price cut of ₹2–5/litre on both petrol and diesel is possible by August–September 2026 if crude stays below $78. July is unlikely. Watch for any pre-election announcement as the trigger.
Impact on India’s Economy
Every ₹1/litre cut in petrol and diesel prices reduces India’s retail inflation by approximately 0.15 percentage points. A ₹5/litre cut would reduce CPI by 0.75% — significant when the RBI’s inflation target is 4%. This also improves India’s current account deficit (India imports 85% of crude) and gives the RBI more room to eventually cut rates.
Prices sourced from PPAC and IndianOil as of June 26–27, 2026. Fuel prices vary by state due to local VAT. Always check with your local petrol station for exact rates.
