Fuel prices across India held steady on June 3, 2026, providing a brief pause after a series of increases, including a significant hike on May 25. This stability follows a period of intense volatility in global energy markets, largely influenced by the ongoing US-Iran conflict and concerns over the closure of the Strait of Hormuz, which have kept crude oil prices elevated, crossing the $100 per barrel mark.
The May 25 price adjustment marked the fourth hike in just two weeks, as oil marketing companies worked to recover losses accumulated over several months. In this latest round of revisions, petrol prices rose by ₹2.61 per litre, and diesel by ₹2.71 per litre.
Current Fuel Prices in Major Indian Cities (June 3, 2026)
- New Delhi: Petrol ₹102.12 per litre, Diesel ₹95.20 per litre. Petrol prices in the capital had already surpassed the ₹100 mark in previous hikes.
- Mumbai: Petrol ₹111.21 per litre, Diesel ₹97.83 per litre. Mumbai's petrol rates have now crossed the ₹110 threshold.
- Hyderabad: Petrol ₹115.69 per litre, Diesel ₹103.82 per litre.
- Kolkata: Petrol ₹113.47 per litre, Diesel ₹99.82 per litre.
- Bengaluru: Petrol ₹110.91 per litre, Diesel ₹98.80 per litre.
- Chennai: Petrol ₹107.77 per litre, Diesel ₹99.58 per litre.
Factors Influencing Retail Fuel Prices
The retail price of petrol and diesel at the pump is a complex calculation influenced by several global, economic, and domestic factors:
- International Crude Oil Prices: This is the primary determinant, as crude oil is the raw material for both fuels. Fluctuations in global crude rates have the most significant impact on consumer prices.
- Rupee-Dollar Exchange Rate: India heavily relies on imported crude. A weaker rupee against the US dollar increases the cost of crude procurement, directly affecting retail fuel prices.
- Government Taxes: Both the central and state governments levy various taxes, including excise duty and Value Added Tax (VAT), which constitute a substantial portion of the final retail price. This is a key reason for price disparities across different states.
- Transportation Costs: The cost of transporting fuel from refineries to distribution points and then to retail outlets also adds to the final price.
- Demand-Supply Dynamics: Local demand and supply conditions can also play a role in influencing retail prices at the pump.
As global energy markets remain volatile, consumers will continue to monitor daily price revisions closely, with the hope for more sustained stability in the future.