In the last 20 days, 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. On June 2, however, prices of petrol and diesel have remained largely unchanged, with the exception of a few paise.
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.
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. 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.
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Petrol prices on June 2
- 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 2
- 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 steadied on Tuesday after posting their biggest daily gain in about a month, as conflicting signals around US-Iran negotiations kept traders focused on the risk of prolonged disruption to Middle Eastern energy supplies.
Brent crude settled just below $95 a barrel, while West Texas Intermediate traded near $92 a barrel after surging more than 5% in the previous session.
The rally was initially triggered by reports that Tehran had suspended talks with Washington in protest against Israel's military actions in Lebanon. Prices later pared some gains after US President Donald Trump said negotiations with Iran were still ongoing.
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.
Are Petrol And Diesel Prices Revised Daily By Oil Companies?
Oil Marketing Companies (OMCs) such as Indian Oil, Bharat Petroleum and Hindustan Petroleum have the authority to revise petrol and diesel prices every day under India's dynamic fuel pricing system. However, in practice, retail fuel prices do not necessarily change every day. Prices are often kept unchanged for extended periods despite movements in international crude oil prices, exchange rates or product prices.
When market conditions and policy considerations permit, OMCs may adjust prices, but daily revision does not automatically mean daily price changes. In other words, fuel prices are reviewed daily, but they are not always changed daily.
Is GST Applied On Petrol And Diesel Prices In India?
No. Petrol and diesel are currently outside the GST framework. Instead, they are subject to Central excise duty and State VAT or sales tax. This is one of the key reasons fuel prices vary from one state to another.
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