Petrol and diesel prices across India held steady on June 22, continuing a period of stability observed since May 25. This follows a significant hike last month when state-owned fuel retailers increased petrol prices by ₹2.61 per litre and diesel by ₹2.71 per litre.
Fuel Prices Across Major Indian Cities
Despite the current stability, major Indian cities continue to see high fuel costs. In the capital, Delhi, petrol is priced at Rs 102.12 per litre, while diesel costs Rs 95.20 per litre. Mumbai residents are paying even more, with petrol at Rs 111.21 per litre and diesel at Rs 97.83 per litre.
Other key metropolitan areas also report elevated prices:
- Hyderabad: Petrol Rs 115.69, Diesel Rs 103.82
- Kolkata: Petrol Rs 113.47, Diesel Rs 99.82
- Bengaluru: Petrol Rs 110.61, Diesel Rs 98.54
- Chennai: Petrol Rs 107.87, Diesel Rs 99.65
Notably, Hyderabad is an outlier where diesel prices have also crossed the Rs 100 mark.
Factors Influencing Fuel Prices in India
A complex interplay of global, economic, and domestic factors determines the retail price of petrol and diesel at the pump in India.
Global Crude Oil & Exchange Rates
The primary driver is the international price of crude oil, which serves as the raw material for both fuels. Given India's heavy reliance on imported crude, global market fluctuations significantly impact domestic costs. Additionally, the rupee-dollar exchange rate plays a crucial role; a weaker rupee increases the cost of crude procurement, potentially leading to higher retail prices.
Taxation & Local Factors
Beyond international dynamics, taxes levied by both the central and state governments constitute a substantial portion of the final price. These varying tax structures are a key reason why petrol and diesel rates differ from one state to another. Transportation costs and local demand-supply conditions also contribute to the final price consumers pay.