In the last two weeks, the prices of petrol and diesel had been hiked for four times, with the latest increase of Rs 2.6 and Rs 2.7 per litre respectively last Monday. So far, prices have increased by Rs 7.5-8 since the start of the US-Iran war as global oil prices have soared due to ongoing conflict in the Middle East that has impacted oil marketing companies significantly.
On June 1, however, prices of petrol and diesel have remained largely unchanged, with the exception of a few paise.
Indian consumers are facing a sharp rise in fuel expenses once again, with petrol prices in several cities are set to touch the Rs 114-per-litre, revealing the widening gap in fuel costs across states. In Delhi, petrol is now priced at Rs 102.12 per litre, while diesel costs Rs 95.20 per litre. State-owned oil firms are incurring losses Rs 1,600-1,700 crore per day, over Rs 1 lakh crore in 10 weeks amid the crisis.
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Petrol prices on June 1
- Petrol price in Delhi : Rs 102.12/litre
- Petrol price in Kolkata : Rs 113.51/litre
- Petrol price in Mumbai : Rs 112.21/litre
- Petrol price in Chennai : Rs 108.01/litre
- Petrol price in Hyderabad: Rs 115.73/litre
- Petrol price in Bengaluru: Rs 110.89/litre
Diesel prices on June 1
- Diesel price in Delhi : Rs 95.20/litre
- Diesel price in Kolkata : Rs 99.82/litre
- Diesel price in Mumbai : Rs 97.83litre
- Diesel price in Chennai: Rs 99.66/litre
- Diesel price in Hyderabad : 103.82/litre
- Diesel price in Bengaluru: 98.80/litre
Global Oil Prices
Oil prices rose on Monday after hitting their lowest levels in six weeks, as investors reassessed the prospects of a peace agreement between the US and Iran that could restore energy flows through the Strait of Hormuz.
Brent crude climbed toward $93 a barrel after ending Friday at its weakest level since mid-April, while US benchmark West Texas Intermediate traded near $89 a barrel.
The gains came as uncertainty resurfaced around negotiations between Washington and Tehran. Both sides exchanged proposed amendments to a draft agreement over the weekend that would extend the current ceasefire and pave the way for a reopening of the Strait of Hormuz, one of the world's most important oil transit routes. However, there was little indication that a final breakthrough was imminent.
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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