Just days after the election results have been out for Tamil Nadu, West Bengal, Assam, Puducherry, and Keralam, and everyone has been bracing for a change in petrol and diesel prices, especially as global oil prices swung sharply in the previous session. Oil marketing companies are selling petrol and diesel at a loss of Rs 14 per litre and Rs 18 per litre, respectively, as elevated crude prices outpace capped retail fuel rates, squeezing marketing margins.
Despite the losses, petrol and diesel prices across major Indian cities rhiked marginally on May 7, with the difference of just a rupee or few paise.
In the national capital, petrol is still selling at Rs 94.77 per litre, while diesel is priced at Rs 87.67 per litre. Rates are comparatively steeper in Mumbai, where petrol is being sold at Rs 103.50 per litre and diesel at about Rs 90.01 per litre.
Additionally, rumours were rife on social media about the hike in fuel prices in the country, which prompted the Press Information Bureau's fact-check unit to deny the claims that the Central government has increased petrol and diesel prices. "This order is #FAKE. The Government of India has NOT issued any such Order. Always VERIFY such news only through official government sources,” clarified the PIB Fact Check in its post on X. Earlier, the fake post, which was viral on social media spaces, had claimed that the petroleum ministry had hiked the prices of petrol and diesel by Rs 10 and Rs 12.5, respectively.
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| City | Petrol (Rs/Litre) | Diesel (Rs/Litre) |
|---|---|---|
| Delhi | 94.77 | 87.67 |
| Mumbai | 103.54 | 90.03 |
| Kolkata | 105.45 | 92.02 |
| Chennai | 100.80 | 92.39 |
| Ahmedabad | 94.49 | 90.16 |
| Hyderabad | 107.46 | 95.70 |
| Patna | 105.74 | 91.47 |
| Bengaluru | 102.92 | 90.99 |
| Lucknow | 94.57 | 87.67 |
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.
Get all the latest updates on the US, Israel-Iran war here.
Global Oil Prices
Oil prices steadied on Thursday after suffering their sharpest drop in weeks, as traders assessed signs of possible diplomatic progress between the US and Iran that could eventually ease disruptions in the Middle East. Brent crude traded above $102 a barrel, while West Texas Intermediate hovered near $96, recovering some ground after both benchmarks plunged nearly 8% in the previous session.
The selloff came amid reports that Washington had floated a fresh proposal aimed at ending the war and gradually reopening the Strait of Hormuz. According to a person familiar with the matter, the US has presented Iran with a one-page memorandum of understanding that could pave the way for phased restoration of shipping through the critical waterway. Tehran is expected to respond within days.
Despite mounting pressure to raise fuel prices amid the Iran war disruption, the central government has decided to keep the domestic LPG rates unchanged. It costs Rs 913 per 14.2-kg cylinder in Delhi.
However, the price of commercial LPG (19 kg) has been increased by Rs 993 (on average). Commercial LPG cylinder prices in Delhi are now at Rs 3,071.50 (from Rs 2,078.50 earlier). Similarly, commercial LPG cylinder prices in Mumbai have been raised from Rs 2,031 to Rs 3,024.
Significantly, the price of a 19-kg commercial LPG cylinder has been increased thrice since February 28 when the Iran war began. It was first increased by Rs 144 in March, followed by another hike of nearly Rs 200 on April 1.
ALSO READ: Oil Firms Losing Rs 14/Litre On Petrol, Rs 18/Litre On Diesel As Crude Prices Soar
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