Retail prices of petrol and diesel largely remained unchanged on June 12 with the exception of a few paise. Fuel prices have been hiked for four times since the last month, with the latest increase of Rs 2.6 and Rs 2.7 per litre respectively announced the previous week. So far, prices have increased by Rs 7.5-8 since the start of the US-Iran war as global oil prices have soared due to ongoing conflict in the Middle East that has impacted oil marketing companies significantly.
In Delhi, petrol is priced at Rs 102.12 per litre, while diesel costs 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. Consumers are facing a sharp rise in fuel expenses once again, with petrol prices in several cities are set to touch the Rs 114-per-litre, revealing the widening gap in fuel costs across states.
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Petrol prices on June 12
- Petrol price in Delhi : Rs 102.12/litre
- Petrol price in Kolkata : Rs 113.51/litre
- Petrol price in Mumbai : Rs 112.21/litre
- Petrol price in Chennai : Rs 108.01/litre
- Petrol price in Hyderabad: Rs 115.73/litre
- Petrol price in Bengaluru: Rs 110.89/litre
Diesel prices on June 12
- 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 99.66/litre
- Diesel price in Hyderabad : 103.82/litre
- Diesel price in Bengaluru: 98.80/litre
Global Oil Prices
Oil prices extended their decline on Friday after US President Donald Trump said a peace agreement with Iran could be signed as soon as this weekend, raising hopes that disruptions to Middle Eastern energy supplies may eventually ease.
Brent crude fell nearly 2% at the open to $88.79 a barrel after ending the previous session at a two-month low. US benchmark West Texas Intermediate traded near $86 a barrel.
The latest drop comes after a volatile week in which Trump alternated between threatening fresh military action against Iran and suggesting that a diplomatic breakthrough was imminent.
Speaking at the White House, Trump said a deal could be signed in Europe as early as this weekend and claimed Iran's leadership had agreed to its broad contours, though he acknowledged that negotiations were not yet complete.
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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 value added tax or VAT significantly affect the final retail price of petrol and diesel. This is why fuel rates differ across all cities.
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