Fuel prices in India saw relative stability on June 13, coming after a notable increase implemented on May 25. This earlier hike, which saw petrol rise by ₹2.61 per litre and diesel by ₹2.71 per litre, was initiated by state-backed oil marketing companies (OMCs) to recoup substantial losses accumulated over several months.
Current Fuel Prices in Major Indian Cities
As of June 13, petrol and diesel rates have largely held steady since the May 25 adjustment. However, prices remain elevated, particularly in major urban centers:
- In Delhi, petrol has surpassed the ₹100 mark, with diesel priced at approximately ₹95.20 per litre.
- Mumbai continues to see higher rates, with petrol exceeding ₹110 and diesel around ₹97.83 per litre.
- Cities like Bengaluru, Hyderabad, and Kolkata also report petrol prices above ₹100 per litre, while diesel generally stays below this threshold.
Exact figures for June 13 were reported as:
- Delhi: Petrol ₹102.12, Diesel ₹95.20
- Hyderabad: Petrol ₹115.69, Diesel ₹103.82
- Kolkata: Petrol ₹113.47, Diesel ₹99.82
- Mumbai: Petrol ₹111.18, Diesel ₹97.83
- Bengaluru: Petrol ₹110.89, Diesel ₹98.80
- Chennai: Petrol ₹107.87, Diesel ₹99.66
Factors Influencing Petrol and Diesel Costs
Several critical factors contribute to the pump prices of petrol and diesel across India:
Global Crude Oil Prices
The international price of crude oil is the primary determinant. India, being a significant importer, is highly susceptible to global market fluctuations. Recent tensions in West Asia and disruptions to key shipping routes have kept crude markets volatile.
Rupee-Dollar Exchange Rate
Since crude oil is purchased in US dollars, the exchange rate between the Indian Rupee and the US Dollar significantly impacts import costs. A weaker rupee makes crude imports more expensive, which often translates to higher retail fuel prices.
Government Taxes and Local Levies
Both central and state governments levy various taxes, including excise duty and VAT, which form a substantial portion of the final retail price. These taxes explain why fuel prices can vary considerably from one state or city to another.
Other Operational Costs
Transportation costs from refineries to distribution points, dealer commissions, and the prevailing demand-supply dynamics within specific regions also play a role in shaping the final price consumers pay at the pump.
The OMCs continue to monitor global oil markets and domestic economic conditions to adjust prices, aiming to balance consumer affordability with their operational costs and recovery of losses.