Indian consumers saw no change in petrol and diesel prices on June 4, 2026, marking a period of stability after a series of significant hikes implemented in late May. These revisions, which included a fourth price increase within two weeks, led to petrol going up by ₹2.61 per litre and diesel by ₹2.71 per litre.
Oil marketing companies have attributed these increases to the necessity of recovering months of accumulated losses, compounded by global crude oil prices surpassing the $100 per barrel mark. Geopolitical tensions, notably the US-Iran conflict and the closure of the Strait of Hormuz, have further contributed to the volatility in international energy markets.
Current Fuel Prices in Major Cities (June 4, 2026)
As of June 4, 2026, fuel prices in key Indian metropolitan areas stood as follows:
- New Delhi: Petrol ₹102.12 per litre, Diesel ₹95.20 per litre. (Petrol had crossed the ₹100 mark in the preceding hike.)
- Mumbai: Petrol ₹111.18 per litre, Diesel ₹97.83 per litre. (Petrol surpassed the ₹110 mark.)
- Hyderabad: Petrol ₹115.69 per litre, Diesel ₹103.82 per litre.
- Kolkata: Petrol ₹113.47 per litre, Diesel ₹99.82 per litre.
- Bengaluru: Petrol ₹110.93 per litre, Diesel ₹98.80 per litre.
- Chennai: Petrol ₹107.87 per litre, Diesel ₹99.66 per litre.
Factors Influencing Fuel Costs in India
The retail price of petrol and diesel at the pump in India is a complex calculation influenced by several domestic and international factors:
Global Crude Oil Prices
The most significant determinant is the international price of crude oil. As India imports a substantial portion of its crude requirements, global market fluctuations directly impact procurement costs for oil marketing companies.
Rupee-Dollar Exchange Rate
Given that crude oil is traded in US dollars, the exchange rate between the Indian Rupee and the US Dollar plays a crucial role. A weakening Rupee makes crude imports more expensive, which can translate into higher retail fuel prices.
Government Taxes and Levies
Both the central and state governments levy various taxes, including excise duty and Value Added Tax (VAT), on petrol and diesel. These taxes constitute a substantial portion of the final retail price, explaining why fuel rates vary significantly across different states.
Operational Costs
Transportation costs from refineries to distribution points, along with the prevailing demand and supply dynamics within specific regions, also factor into the ultimate price consumers pay at the fuel station.