Fuel prices in India largely held steady on June 5, offering a brief respite after a series of increases, including a notable hike on May 25. This stability comes amidst continued volatility in global energy markets, influenced by geopolitical tensions and elevated crude oil prices.
The May 25 increase was the fourth hike within two weeks, pushing petrol prices up by ₹2.61 per litre and diesel by ₹2.71 in a recent series of revisions. Oil marketing companies have been working to recover losses accumulated over months, even as international crude oil prices surpassed $100 per barrel.
Latest Fuel Prices on June 5 Across Key Indian Cities:
- Delhi: Petrol ₹102.12 per litre, Diesel ₹95.20 per litre.
- Mumbai: Petrol ₹111.21 per litre, Diesel ₹97.83 per litre.
- Hyderabad: Petrol ₹115.73 per litre, Diesel ₹103.82 per litre.
- Kolkata: Petrol ₹113.51 per litre, Diesel ₹99.82 per litre.
- Bengaluru: Petrol ₹110.97 per litre, Diesel ₹98.87 per litre.
- Chennai: Petrol ₹107.75 per litre, Diesel ₹99.56 per litre.
Factors Influencing Fuel Prices in India:
Retail fuel prices at the pump are a complex interplay of several factors:
- Global Crude Oil Prices: As the primary raw material, the international price of crude oil has the most significant impact on what consumers pay.
- Rupee-Dollar Exchange Rate: India heavily relies on imported crude. A weaker rupee against the dollar increases the cost of procurement, which can lead to higher retail prices.
- Central and State Taxes: Both central and state governments levy taxes that constitute a substantial portion of the final price, explaining why rates vary significantly across different states.
- Transportation Costs: Logistical expenses for transporting fuel from refineries to distribution points also factor into the retail price.
- Demand-Supply Dynamics: Local demand and supply conditions can also influence regional pricing.