- Petrol and diesel prices rose by up to Rs 0.91 per litre in major Indian cities on May 20
- Brent crude prices surged over 50% since US and Israel strikes on Iran in late February
- Oil firms face losses as selling below market price continues amid geopolitical tensions
A Rs 3 hike, and then a 90 paise hike in the span of 4 days. Oil marketing companies have been under pressure from rising brent crude prices amid the ongoing US-Iran conflict, until very recently. After the elections, it was expected that petrol, diesel prices will be hiked to recover at least some losses incurred by the state run OMCs, especially as brent crude has seen an extraordinary rally of more than 50% since the US and Israel launched strikes on Iran at the end of February.
On May 20, prices for petrol and diesel are largely unchanged, with the exception of a few paise. (check table below. changes in bold.)
In Delhi, petrol is now priced at Rs 98.64 per litre, up by 87 paise, while diesel costs Rs 91.58 per litre after a hike of 91 paise. Mumbai saw petrol prices rise by 91 paise to Rs 107.59 per litre, with diesel up 94 paise at Rs 94.08 per litre.
Last week, Petroleum Minister Hardeep Singh Puri on Tuesday said public sector oil marketing companies may not be able to sustain daily losses of Rs 1,000 crore from selling petrol and diesel below market price.
ALSO READ: Petrol, Diesel Prices Hiked Again, Fuel To Get Costlier By 90 Paise Per Litre
| City | Petrol (Rs/Litre) | Diesel (Rs/Litre) |
|---|---|---|
| Delhi | 98.64 | 91.58 |
| Mumbai | 107.59 | 94.08 |
| Kolkata | 109.70 | 96.07 |
| Chennai | 104.51 | 96.13 |
| Chandigarh | 98.12 | 86.09 |
| Hyderabad | 111.84 | 99.95 |
| Jaipur | 108.55 | 93.81 |
| Bengaluru | 107.16 | 95.04 |
| Lucknow | 98.40 | 91.72 |
Global Oil Prices
Oil prices were little changed on Wednesday as traders assessed President Donald Trump's latest threat to resume military strikes against Iran, keeping the geopolitical risk premium firmly embedded in crude markets.
Brent crude slipped below $111 a barrel after easing 0.7% in the previous session, while West Texas Intermediate traded near $104. Despite the modest pullback, both benchmarks remain sharply higher as tensions in the Middle East continue to disrupt one of the world's most critical oil corridors.
Trump warned that if Tehran failed to accept US peace terms, “we may have to give them another big hit,” less than 24 hours after saying he had called off a planned attack.
What Drives Petrol and Diesel Prices?
Fuel prices in India depend on several factors, with global crude oil prices being the most significant as crude is the primary raw material used to produce petrol and diesel.
The rupee–dollar exchange rate also influences fuel prices since India imports a large portion of its crude oil requirements. Additionally, central excise duty and state-level VAT significantly affect the final retail price of petrol and diesel, which is why rates differ across cities.
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