Indian consumers are once again facing higher fuel costs as petrol and diesel prices saw a significant upward revision across major cities on May 19. This marks the second such hike in just a few days, following a previous increase of ₹3 per litre last Friday.
The latest surge is primarily attributed to continued volatility in global crude oil markets, exacerbated by the ongoing conflict in West Asia and disruptions to shipping traffic through the crucial Strait of Hormuz.
New Fuel Rates in Major Indian Cities
Oil marketing companies revised retail rates upwards on Monday. In New Delhi, petrol climbed by 87 paise to reach Rs 98.64 per litre, while diesel rose by 91 paise to Rs 91.58 per litre.
Residents of Mumbai are paying even more, with petrol now retailing at ₹107.59 per litre and diesel at approximately ₹94.08 per litre. Hyderabad has seen its petrol prices cross the ₹111 mark, settling at ₹111.88 per litre, with diesel at ₹99.95 per litre.
Other major cities also experienced similar increases:
- Kolkata: Petrol ₹109.70, Diesel ₹96.07
- Bengaluru: Petrol ₹107.12, Diesel ₹95.04
- Chennai: Petrol ₹104.46, Diesel ₹96.11
Factors Influencing Fuel Prices in India
The final price consumers pay at the pump is a complex interplay of several global and domestic factors. The most significant determinant is the international price of crude oil, which serves as the base raw material for both petrol and diesel. Fluctuations in global crude benchmarks directly impact India, a major oil importer.
Another critical variable is the rupee-dollar exchange rate. Since India purchases crude oil in US dollars, a weakening rupee against the dollar increases the cost of imports, which is then passed on to consumers. Government levies also play a substantial role; both central and state governments impose various taxes that constitute a significant portion of the retail price. This taxation structure is a primary reason why fuel prices vary considerably across different states.
Furthermore, local transportation costs and the prevailing demand-supply dynamics within specific regions also contribute to the final retail prices observed at petrol stations.