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. 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 50% since the US and Israel launched strikes on Iran at the end of February.
Additionally, Prime Minister Narendra Modi will chair a meeting of the Council of Ministers at 4 pm on Thursday at Seva Teerth in Delhi. All Union ministers have been asked to remain in the national capital during this period, amid ongoing political and economic deliberations within the government.
On May 21, 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.
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| 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 |
Global Oil Prices
Oil prices edged higher on Thursday after suffering their steepest one-day decline in weeks, as investors weighed the possibility of a breakthrough in negotiations between the US and Iran that could reopen the Strait of Hormuz and restore disrupted crude supplies.
Brent crude traded above $105 a barrel, recovering modestly after tumbling 5.6% in the previous session. US benchmark West Texas Intermediate hovered near $99 a barrel.
The rebound came after US President Donald Trump said Washington was in the “final stages” of talks with Tehran, raising hopes that a deal could be reached to end one of the most severe oil supply disruptions in modern history.
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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