Fuel prices across India saw little to no change on August 8, maintaining a period of stability that has largely held since May 25. State-owned Oil Marketing Companies (OMCs) had previously implemented a hike of ₹2.61 per litre for petrol and ₹2.71 per litre for diesel on that date, but rates have since remained steady.
This consistent pricing comes even as global oil prices experienced a slight dip last week. Hopes of resumed shipping through the Strait of Hormuz, following the latest round of US-Iran discussions, contributed to the lower international crude benchmarks.
Current Fuel Rates Across India
As of August 8, residents in major metropolitan areas continue to face specific pricing:
- Delhi: Petrol is priced at ₹102.12 per litre, with diesel at ₹95.20 per litre.
- Mumbai: Petrol remains above the ₹110 mark at ₹111.21 per litre, and diesel is ₹99.82 per litre.
- Kolkata: Consumers pay ₹113.50 for petrol and ₹99.82 for diesel.
- Chennai: Petrol is at ₹107.77 per litre, and diesel at ₹99.55 per litre.
- Bengaluru: Petrol costs ₹110.93 per litre, while diesel is ₹98.80 per litre.
- Hyderabad: Petrol is ₹115.69 per litre, and diesel is ₹103.82 per litre, making it one of the few cities where diesel also exceeds ₹100.
Factors Influencing India's Fuel Prices
The retail price of petrol and diesel in India is a complex calculation, shaped by a confluence of international and domestic factors:
Global Crude Oil Prices
The international price of crude oil is the most significant determinant. As India is a major importer of crude, fluctuations in global commodity markets directly impact the base cost for OMCs.
Rupee-Dollar Exchange Rate
Given that crude oil purchases are typically made in US dollars, the exchange rate between the Indian Rupee and the US Dollar plays a crucial role. A weakening Rupee increases the cost of imports, which can translate to higher retail fuel prices.
Government Taxes and Levies
Both the central and state governments impose 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 and are a primary reason for price disparities across different states.
Other Operational Costs
Additional factors like transportation costs, dealer commissions, and the prevailing demand-supply dynamics within specific regions also contribute to the final price consumers pay at the pump.