Fuel prices across India remained largely stable on August 6, with state-owned Oil Marketing Companies (OMCs) holding rates steady. This comes as global oil prices settled lower last week, influenced by developments in the US-Iran situation and hopes for resumed shipping via the Strait of Hormuz.
Previous Price Adjustments
The current stability in India's fuel market follows a significant adjustment on May 25. On that date, OMCs increased petrol prices by ₹2.61 per litre and diesel prices by ₹2.71 per litre across the nation.
City-Specific Fuel Rates on August 6
Major metropolitan areas continue to report varying fuel prices due to state-specific taxes and other factors:
- Delhi: Petrol is priced at ₹102.12 per litre, while diesel retails at ₹95.20 per litre.
- Mumbai: Petrol remains above the ₹110 mark at ₹111.21 per litre, with diesel at ₹97.83 per litre.
- Kolkata: Consumers pay ₹113.51 per litre for petrol and ₹99.82 per litre for diesel.
- Chennai: Petrol stands at ₹107.76 per litre, and diesel at ₹99.55 per litre.
- Bengaluru: Petrol is priced at ₹110.93 per litre, with diesel at ₹98.80 per litre.
- Hyderabad: Petrol costs ₹115.69 per litre, and diesel is ₹103.82 per litre, making it one of the higher diesel rates.
Factors Influencing Fuel Prices in India
Several key elements combine to determine the final retail price of petrol and diesel at the pump:
International Crude Oil Prices
The most significant factor is the international price of crude oil. As India imports a substantial portion of its crude, global market fluctuations directly impact domestic fuel costs.
Rupee-Dollar Exchange Rate
Given India's reliance on imported crude, the exchange rate between the Indian Rupee and the US Dollar plays a crucial role. A weaker rupee increases the cost of crude oil procurement, potentially leading to higher retail prices.
Government Taxes and Transportation Costs
Both the central and state governments levy various taxes on fuel, which constitute a substantial portion of the final price. These taxes vary by state, explaining why petrol and diesel rates differ significantly across cities. Additionally, transportation costs from refineries to distribution points also factor into the retail price.