The prices of petrol and diesel were 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 yesterday. 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 26, however, prices of petrol and diesel have remained largely unchanged, with the exception of a few paise.
Petrol prices on May 26
- 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 26
- 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 edged higher on Tuesday after suffering their steepest drop in weeks during the previous session, as fresh military activity near the Strait of Hormuz complicated hopes of a breakthrough US-Iran agreement. Brent crude rose toward $98 a barrel, while West Texas Intermediate traded near $91, recovering part of Monday's sharp decline of more than 7%.
The rebound came after reports of fresh US military action in Iran raised concerns that negotiations to reopen the Strait of Hormuz may still face major obstacles.
According to a report by The New York Times, citing US Central Command, American forces struck missile-launch sites and boats allegedly attempting to deploy naval mines near the strategic waterway. Iran's semi-official Fars News Agency also reported loud explosions near the coastal cities of Sirik and Jask, both located close to the strait.
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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