Fuel prices across India have increased for the second time this week, with retail rates revised upwards on Monday, May 19. This latest surge follows an initial hike last Friday, where petrol and diesel rates climbed by ₹3 per litre across various cities.
New Fuel Rates in Major Indian Cities
In New Delhi, petrol is now priced at ₹98.64 per litre, an increase of 87 paise. Diesel rates in the capital have also risen by 91 paise, reaching ₹91.58 per litre. Mumbai continues to see higher prices, with petrol selling at ₹107.59 per litre and diesel at approximately ₹94.08 per litre.
- Delhi: Petrol ₹98.64/litre, Diesel ₹91.58/litre
- Mumbai: Petrol ₹107.59/litre, Diesel ₹94.08/litre
- Hyderabad: Petrol ₹111.88/litre, Diesel ₹99.95/litre
- Kolkata: Petrol ₹109.70/litre, Diesel ₹96.07/litre
- Bengaluru: Petrol ₹107.16/litre, Diesel ₹95.04/litre
- Chennai: Petrol ₹104.92/litre, Diesel ₹96.54/litre
Notably, petrol prices in Hyderabad have now exceeded the ₹111 per litre mark, while diesel is nearing ₹100 per litre in the city.
Factors Driving India's Fuel Price Increases
The consistent upward revision of fuel prices is primarily attributed to several interconnected global and domestic factors. Global crude oil prices, which serve as the fundamental raw material for both petrol and diesel, exert the most significant influence on what consumers ultimately pay at the pump.
Global Crude Oil Volatility
Ongoing volatility in global crude markets is a major contributor to the current price hikes. This instability is largely fueled by the persistent conflict in West Asia and disruptions to shipping traffic through the crucial Strait of Hormuz, a vital chokepoint for global oil supplies.
Rupee-Dollar Exchange Rate
India's heavy reliance on imported crude oil means the rupee-dollar exchange rate plays a critical role. A weakening rupee against the US dollar increases the cost of procuring crude, directly translating to higher retail fuel prices for consumers.
Taxation and Local Costs
Beyond international market dynamics, taxes levied by both the central and state governments constitute a substantial portion of the final retail price. This dual taxation system is the primary reason for the varying petrol and diesel rates across different Indian states and cities. Additionally, transportation costs and local demand-supply conditions also factor into the final price consumers encounter at the pump.