A Rs 3 hike, and then a 90 paise hike in the span of 4 days. Oil marketing companies have been under pressure from rising brent crude prices amid the ongoing US-Iran conflict, until very recently, as they saw a hike of Rs 3.9. After the elections, it was expected that petrol, diesel prices will be hiked to recover at least some losses incurred by the state run OMCs, especially as brent crude has seen an extraordinary rally of more than 40% since the US and Israel launched strikes on Iran at the end of February.
On May 22, prices for petrol and diesel are largely unchanged, with the exception of a few paise. (check table below.)
In Delhi, petrol is now priced at Rs 98.64 per litre, up by 87 paise, while diesel costs Rs 91.58 per litre after a hike of 91 paise. Mumbai saw petrol prices rise by 91 paise to Rs 107.59 per litre, with diesel up 94 paise at Rs 94.08 per litre.
The state-run Indian Oil Corporation has also directed its dealers not to impose any restrictions on the sale of petrol and diesel unless specifically ordered by state governments or local authorities. In an internal communication accessed by NDTV Profit, the company clarified that no instructions have been issued for rationing fuel supplies and warned that any violation of the directive would be viewed seriously.
The advisory comes at a time when fuel demand has surged sharply across retail outlets.
ALSO READ: No Petrol, Diesel Rationing: Indian Oil Tells Dealers Not To Restrict Fuel Sales
| City | Petrol (Rs/Litre) | Diesel (Rs/Litre) |
|---|---|---|
| Delhi | 98.64 | 91.58 |
| Mumbai | 107.55 | 94.08 |
| Kolkata | 109.70 | 96.07 |
| Chennai | 104.57 | 96.21 |
| Chandigarh | 98.10 | 86.09 |
| Hyderabad | 111.84 | 99.95 |
| Jaipur | 108.70 | 93.81 |
| Bengaluru | 107.16 | 95.04 |
| Lucknow | 98.40 | 91.72 |
ALSO READ: Oil Prices Today: Brent Crude Rises As Iran Uranium Stance Clouds US Deal Hopes
Global Oil Prices
Oil prices rose on Friday after three straight sessions of losses as investors reassessed expectations around negotiations between the United States and Iran.
Brent crude futures for July rose 1.9% to $104.52 a barrel in early Asian trade, while U.S. West Texas Intermediate futures for June gained 1.5% to $97.81 a barrel.
The rebound came after reports that Iran's leadership wants to retain enriched uranium inside the country, raising concerns that negotiations with Washington could take longer and keep pressure on global oil supplies. Investors had earlier turned optimistic after U.S. President Donald Trump said Washington was in the "final stages" of talks with Iran, according to a pool report.
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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