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 27, however, prices of petrol and diesel have remained largely unchanged, with the exception of a few paise.
Petrol prices on May 27
- 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 27
- 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 were little changed on Wednesday as investors assessed signs of progress in talks between the U.S. and Iran, even as tensions around the Strait of Hormuz continued. Brent for July settlement fell 0.5% to $99.13 a barrel, while WTI for July delivery declined 0.9% to $93.09 a barrel.
The market continued to track developments near the Strait of Hormuz after U.S. forces struck targets close to the waterway. Iran's Islamic Revolutionary Guard Corps said it had fired at several U.S. aircraft after they entered Iranian airspace.
Despite the renewed hostilities, U.S. Secretary of State Marco Rubio said any agreement between Washington and Tehran could still take several days to complete. Failure to reach a deal could prolong a conflict that has driven fuel prices sharply higher.
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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