Turning Fuel Price Data into Actionable Insights with AI

By abhishek.verma75000 · August 4, 2026

Fuel prices change every day, but understanding why they change isn't easy. Many factors affect fuel prices, including global crude oil prices, taxes,…

Diesel has the highest average price among fuel types at ₹85.71 per liter. The analysis also breaks down average prices across different cities, with two bar charts showing the full ranking by fuel type and the top 10 cities by average price.

Brent and WTI crude oil prices show almost no linear correlation with fuel Price (INR/L) in this dataset. Brent Crude had a correlation of r = -0.034, and WTI Crude had r = 0.016 — both essentially negligible. This suggests that fuel prices in this dataset are not directly driven by international crude oil price movements, but more likely by other factors like taxes, exchange rates, and local pricing policies.

Average fuel prices climbed from 84.32 INR/L in January 2020 to 86.47 INR/L in September 2022, an overall increase of 2.15 INR/L over 33 months. Prices didn't move in a straight line though - they hit a low of 75.64 INR/L in January 2022, then surged to a peak of 91.2 INR/L just seven months later in August 2022. A line chart visualizes this monthly trend across the full 2020-2022 period.

The biggest demand-supply imbalances occur in Delhi and Lucknow for LPG. Delhi shows the largest shortage, with average demand exceeding supply by about 242 units, meaning LPG demand there consistently outpaces what's supplied. On the other end, Lucknow has the largest surplus, with supply exceeding demand by roughly 515 units on average, indicating an oversupply of LPG in that city. A bar chart highlights the top 15 city-fuel type combinations with the largest average gaps, and a heatmap visualizes these gaps across all cities and fuel types, making it easy to spot patterns of shortage (red) versus surplus (blue) at a glance.

Tax % varies modestly across the 4 states analyzed, ranging from 23.31% in Maharashtra to 25.14% in Karnataka. Karnataka has both the highest tax rate and the highest average fuel price (INR 85.97/L), while Maharashtra has the lowest tax rate and lowest average price (INR 84.36/L). However, the overall correlation between Tax % and Price across all records is essentially zero (-0.004), meaning tax rate alone doesn't strongly predict fuel price - other factors like crude oil costs and exchange rates likely play a bigger role. The bar chart shows average tax rates by state, and the scatter plot illustrates how tax and price relate across individual records and states.

Exchange Rate and Inflation Rate both show almost no linear relationship with Monthly Change % in prices. The correlation between Exchange Rate and Monthly Change % is just 0.025, and Inflation Rate shows an even smaller correlation of 0.020. Both are considered negligible, meaning these two factors don't meaningfully predict or explain the monthly price changes in this dataset. A correlation heatmap and two scatter plots (one for each variable against Monthly Change %) were generated to visually confirm this weak relationship.

A bar chart was generated showing the top 10 countries ranked by their average fuel price (USD/L) across all fuel types and years, with India's position highlighted for easy comparison against global peers.

Your data has been broken down by Region and Fuel Type, and two grouped bar charts were created to visualize how average Price (INR/L) and average Tax % vary across these combinations. The first chart compares fuel prices side-by-side for each region, while the second chart shows tax percentage differences in the same way. A summary table was also generated with the exact average price and tax figures for every Region-Fuel Type pairing, making it easy to spot which combinations have the highest or lowest costs and taxation.

A correlation heatmap was generated showing how Brent Crude Price, WTI Crude Price, Exchange Rate, Inflation Rate, Tax %, and Fuel Price (INR/L) relate to one another. The heatmap uses a red-blue color scale to visually highlight which pairs of factors move together (red) or move in opposite directions (blue), making it easy to spot the strongest relationships at a glance.

Using the IQR (Interquartile Range) method, no outliers were detected in either Monthly Change % or Yearly Change % across all fuel types. The Monthly Change % values all fell within the normal range of -10.22% to 10.10%, and Yearly Change % values stayed within -19.34% to 19.89%. This means every single record in the dataset shows price changes that are considered typical and consistent, with no extreme spikes or drops standing out statistically. Three visualizations were created to illustrate this: two box plots showing the spread of Monthly and Yearly Change % for each fuel type, and a scatter plot comparing Monthly vs Yearly changes side by side.