The importance of petroleum products can be understood from their usage from domestic cooking to transportation etc. in the day to day life of the people. Any change in the price of these products affects almost all kinds of industries of the country. Hike in the price of Petrol-Diesel increases the price of other commodity which induces inflationary situation in the country. Therefore, a stable pricing policy for these products is very important for the consumers of the country. Steady increase in the prices of these products had gone unnoticed till it catches the eye of the consumers. In this paper a modest attempt has been made to highlight the reason of unnecessary hike in the prices of these fuels by closely analyzing the pricing mechanism of downstream level for a decade. It was found in the study that fluctuation rate of crude oil price in the international market did not match with the fluctuation rate of Retail Selling Price of Petrol and Diesel in India