📅 Why July 31 Matters: Fuel Prices That Touch Every Life
Every morning at 6 AM, oil marketing companies (OMCs) quietly update fuel prices across India. But on July 31, 2025, the numbers hit differently. Whether you’re a delivery driver in Mumbai or a homemaker in Patna, these prices shape your day, your budget, and even your mood.
July 31 brings fresh updates across the country. Some cities saw small hikes, others welcomed minor relief. But what’s really behind the changes? Let’s dig deeper.
📊 How Are Petrol and Diesel Prices Decided in India?
Before checking the latest prices in your city, it’s essential to understand how fuel prices are determined:
🛢️ 1. International Crude Oil Price
India imports over 80% of its crude oil, so any increase or decrease in global rates immediately affects domestic fuel prices. On July 30, Brent Crude hovered around $84.32 per barrel, slightly up from last week.
🏛️ 2. Exchange Rate
The INR-USD exchange rate also plays a critical role. A weaker rupee makes oil imports more expensive.
🧾 3. Excise Duty & VAT
Central excise + state VAT = nearly 45–60% of what we pay at the pump. That’s why fuel prices vary so widely across cities and states.
🏢 4. Dealer Commission
Oil companies pay dealers a fixed commission per litre, which is factored into retail prices.
🛠️ 5. Demand-Supply, Geopolitical Events & Refining Costs
Geopolitical tensions, wars, natural disasters, and seasonal demand shifts can spike or lower crude rates, impacting retail prices in India.
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📍 Petrol & Diesel Rates on July 31: Major Cities
| City | Petrol (₹/L) | Diesel (₹/L) |
|---|---|---|
| Delhi | ₹96.72 | ₹89.62 |
| Mumbai | ₹106.31 | ₹94.27 |
| Kolkata | ₹106.03 | ₹92.76 |
| Chennai | ₹102.86 | ₹94.46 |
| Bengaluru | ₹101.94 | ₹87.89 |
| Hyderabad | ₹109.66 | ₹97.82 |
| Ahmedabad | ₹96.42 | ₹92.17 |
| Pune | ₹105.28 | ₹91.73 |
| Jaipur | ₹108.48 | ₹93.72 |
| Gurugram | ₹97.18 | ₹90.05 |
📝 Note: These prices are updated at 6:00 AM on July 31 and may change later in the day.
🔍 Which Cities Got Cheaper Fuel Today?
✅ Lucknow: A surprise ₹0.12 drop in petrol price.
✅ Bhopal: Diesel down by ₹0.09—welcome relief for transporters.
✅ Chandigarh: Stable petrol, but diesel prices decreased slightly.
📢 “Even a 10-paise drop helps when you’re running a delivery business in a metro,” says Akash Singh, a Swiggy delivery partner from Delhi.
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⚠️ Cities That Saw a Hike Today
❌ Hyderabad: Diesel went up by ₹0.18 per litre due to local surcharge.
❌ Mumbai: Minor petrol hike by ₹0.10; no change in diesel.
❌ Bengaluru: Marginal increase in both petrol and diesel by ₹0.06.
📅 Why Prices Are Updated Daily
Since June 2017, India adopted a dynamic pricing system, meaning fuel prices are updated every morning based on global cues. This transparency is meant to align Indian rates with international markets.
But critics argue it causes unnecessary volatility. A consumer in Chennai said:
🗣️ “One day it’s up, next day it’s down. I don’t even know when to refill my bike anymore.”
🧠 Did You Know?
- Rajasthan, Maharashtra, and Andhra Pradesh levy the highest VAT on petrol and diesel.
- The cheapest fuel in India is often found in Andaman & Nicobar Islands due to low local taxes.
- India’s state-run oil companies—IOCL, BPCL, HPCL—review and set retail rates daily at 6 AM.
🔥 Story Spotlight: A Farmer’s Fuel Dilemma in Rural UP
Ramesh Yadav from Rae Bareli owns a small tractor and diesel pump. He shares:
“In 2020, I was filling diesel at ₹64/litre. Now it’s ₹90+. I’m spending ₹800 more per week. My crop income hasn’t increased. If prices rise further, I’ll have to cut my farming area.”
This isn’t just an individual problem—it’s a glimpse into how rising fuel prices affect India’s agriculture sector, where diesel powers irrigation and transport.
📲 Mobile Tip: Best Apps to Track Daily Fuel Rates
Stay updated with just a tap:
📱 IndianOil ONE
- Tracks real-time prices
- Find nearby fuel stations
📱 HP Pay App
- Offers cashback on refueling
- Tracks spending trends
📱 BPCL SmartDrive
- Monitors fuel consumption
- Personalized price alerts
📉 Crude Oil Trends: What Lies Ahead?
Crude oil prices have remained in the $82–$85 per barrel range this month due to:
- Reduced output by OPEC+
- Geopolitical tensions in the Middle East
- High summer demand from the US and China
If crude trends upward, we may see hikes in India by mid-August, unless the government intervenes with tax cuts.
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📈 Fuel Price Forecast for August 2025
| Factor | Trend | Impact on Prices |
|---|---|---|
| Crude oil per barrel | Rising ($85+) | Upward pressure |
| Rupee vs USD | Stable (₹83–₹84) | Neutral |
| Monsoon rainfall | Below average | Likely hike in diesel use |
| Global supply chain | Disrupted (Red Sea) | May increase transport cost |
🔍 Breaking Down ₹100 of Petrol: Where Your Money Goes
Ever wondered why petrol or diesel costs ₹96–₹110 per litre? Here’s a real breakdown of how ₹100 spent on petrol is distributed:
| Component | Amount (₹) | % of Total |
|---|---|---|
| Crude Oil (base price) | ₹38 | 38% |
| Central Excise Duty | ₹19.90 | 19.9% |
| State VAT/Local Taxes | ₹23.50 | 23.5% |
| Dealer Commission | ₹4.50 | 4.5% |
| Freight, Refining, Margin | ₹14.10 | 14.1% |
👉 Total = ₹100
📢 “Only ₹38 goes to actual fuel, the rest is tax or margin,” explains an IndianOil executive from Gujarat.
This shows the real reason behind price differences: state taxes and excise duties, not just international crude prices.
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⚖️ State-Wise Fuel Tax Comparison (High to Low VAT)
Below are the top and bottom states based on VAT imposed on petrol and diesel:
🔺 Highest VAT on Petrol:
- Rajasthan – ~31%
- Maharashtra – ~26%
- Madhya Pradesh – ~25%
🔻 Lowest VAT on Petrol:
- Andaman & Nicobar Islands – 0%
- Goa – ~20%
- Delhi – ~21%
This means someone in Jaipur pays nearly ₹12–₹15 more per litre than someone in Port Blair for the same petrol.
Petrol vs Electric vs Hybrid – Real Ownership Costs in India
⚡ EV vs Petrol: What Makes More Sense in 2025?
With rising fuel prices, the electric vehicle (EV) revolution is gaining momentum.
| Metric | EV Car (Tata Nexon EV) | Petrol Car (Maruti Swift) |
|---|---|---|
| Per km Cost | ₹0.95 (charging) | ₹6.80 (petrol ₹102/km avg) |
| Monthly Fuel Bill | ₹1,140 (1200 km) | ₹8,160 |
| Govt Subsidy (FAME) | Up to ₹1.5 lakh | ❌ None |
| Emission | Zero tailpipe | CO₂ and NOx |
✅ If you’re driving over 1000 km/month, EVs are now more economical and cleaner than petrol or diesel cars.
💬 Public Reactions from Social Media
Twitter and Reddit were buzzing on July 31 morning with mixed reactions:
💬 @rohit_gupta_83
“Hyderabad fuel rates are insane! ₹109 petrol is crazy. Time to go electric.”
💬 @ride_or_die_rahul
“Diesel up by 10p in Mumbai again. Should we just buy bicycles now? 😅”
💬 @sana_reads
“Appreciate the transparency with daily updates. But the price dance every day is just exhausting.”
💸 5 Budgeting Tips to Tackle Rising Fuel Costs
Here’s how to soften the blow of rising fuel prices:
1. Use Fuel Rewards & Cashback Apps
- Apps like HP Pay, IndianOil ONE, Paytm offer cashback on fuel purchases.
- Use UPI payments to track and limit spending.
2. Carpool or Use Public Transport
- Share rides to office or use metro/bus twice a week—it can save ₹300–₹500 monthly.
3. Plan Trips Smartly
- Combine multiple errands into one trip.
- Avoid peak traffic hours to reduce idling losses.
4. Maintain Tyre Pressure
- Correct tyre pressure can improve mileage by 5–7%.
5. Switch to EV for Local Commute
- For under 100 km/day, consider electric scooters like Ather 450X or Ola S1 Pro.
🚀 Government Plans to Control Prices
The government is under pressure to reduce excise duty again before the 2026 general elections.
According to sources from the Ministry of Petroleum:
🗣️ “A fuel tax cut may be considered if Brent crude crosses $90 per barrel consistently for 10+ days.”
Additionally, efforts are being made to increase ethanol blending in petrol up to 20% by 2026, reducing reliance on crude oil imports.
🧭 Historical Fuel Price Trend (Last 12 Months)
| Month | Average Petrol (₹) | Average Diesel (₹) |
|---|---|---|
| July 2025 | ₹103.25 | ₹91.88 |
| April 2025 | ₹101.12 | ₹89.90 |
| Jan 2025 | ₹98.75 | ₹87.50 |
| Sept 2024 | ₹96.60 | ₹85.90 |
| June 2024 | ₹94.10 | ₹83.10 |
📈 Fuel prices have seen a 9% average increase year-on-year, driven by global market recovery, summer demand, and limited domestic tax relief.
https://iocl.com/Products/PetrolDieselPrices.aspx
📢 Take Action: #FuelPriceAlert Movement
Consumers are now taking to social media and local forums to demand fuel price transparency and tax rationalization.
Join movements like:
- #FuelPriceAlert
- #TaxTheOilNotThePeople
- #TransparentFuelIndia
📣 Citizens can also:
- Petition state governments for VAT reduction
- Urge MPs to raise fuel issues in Parliament
- Support public transport and EV policies
✅ Final Takeaways
- 📅 Petrol and diesel prices were revised across all major cities on July 31.
- 📊 Rate changes were mostly minor, but certain metros saw hikes.
- 🧾 Tax and duties still account for over 50% of the price.
- 🔌 EVs are now cheaper to run and maintain for daily use.
- 🧠 Smart fuel management + financial planning = lower impact on wallets.
Disclaimer:
Fuel prices mentioned in this article are based on publicly available data as of July 31, 2025, 6:00 AM IST. Prices are subject to change by OMCs and state governments. Readers are advised to confirm fuel prices via official websites or apps like Indian Oil, HPCL, and BPCL. This article is for informational purposes only and does not constitute financial advice or fuel investment recommendations.