The prices of petrol and diesel had been hiked for the fourth time in less than 12 days, with the latest increase of Rs 2.6 and Rs 2.7 per litre respectively on Monday. Rates have increased by Rs 7.5-8 since the start of the US-Iran war. Global oil prices have rallied due to ongoing conflict in the Middle East, and have impacted oil marketing companies significantly.
Indian consumers are facing a sharp rise in fuel expenses once again, with petrol prices in several cities racing towards the Rs 114-per-litre mark after the latest hike, exposing the widening gap in fuel costs across states. In Delhi, petrol is now priced at Rs 102.12 per litre. Diesel prices have also risen, climbing to 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.
On May 29, however, prices of petrol and diesel have remained largely unchanged, with the exception of a few paise.
Petrol prices on May 29
- Petrol price in Delhi : Rs 102.12/litre
- Petrol price in Kolkata : Rs 113.51/litre
- Petrol price in Mumbai : Rs 111.18/litre
- Petrol price in Chennai : Rs 107.74/litre
- Petrol price in Hyderabad: Rs 115.73/litre
- Petrol price in Bengaluru: Rs 110.93/litre
Diesel prices on May 29
- 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 99.55/litre
- Diesel price in Hyderabad : 103.82/litre
- Diesel price in Bengaluru: 98.80/litre
Global Oil Prices
Oil prices extended losses on Friday, with Brent crude heading for its steepest monthly decline since 2020, as signs of progress in US-Iran negotiations fuelled hopes that disruptions to global energy supplies could eventually ease.
Brent crude slipped towards $93 a barrel, taking its losses for the month to about 18%, while West Texas Intermediate traded near $88. The sharp decline comes after weeks of volatility driven by fears over the prolonged closure of the Strait of Hormuz, a key artery for global oil trade.
Investor sentiment improved after reports suggested that Washington and Tehran had tentatively agreed to extend their ceasefire by another 60 days. According to an Axios report, discussions included provisions that could eventually allow unrestricted shipping through Hormuz, although US President Donald Trump has not yet formally endorsed the proposed terms.
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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