Fuel prices across India remained largely unchanged on July 6, with state-owned Oil Marketing Companies (OMCs) keeping petrol and diesel rates steady since May 25. This stability comes despite Brent crude oil recently falling to a four-month low, a decline attributed to easing geopolitical tensions.
Union Petroleum and Natural Gas Minister Hardeep Singh Puri stated that an immediate cut in domestic fuel prices is unlikely. He explained that retailers are still working through inventories of higher-priced crude oil, which was purchased during the peak of the West Asia crisis.
City-Wise Fuel Prices on July 6
As of July 6, specific cities continue to see high fuel costs:
- Delhi: Petrol priced at ₹102.12 per litre, diesel at ₹95.20 per litre.
- Mumbai: Petrol at ₹111.21 per litre, diesel at ₹97.83 per litre.
- Hyderabad: Petrol at ₹116.99 per litre, diesel at ₹105.03 per litre.
- Kolkata: Petrol at ₹113.51 per litre, diesel at ₹99.82 per litre.
- Bengaluru: Petrol at ₹111.68 per litre, diesel at ₹99.56 per litre.
- Chennai: Petrol at ₹107.76 per litre, diesel at ₹99.55 per litre.
While most major cities saw stable rates, Rosneft-backed Nayara Energy implemented a price reduction on Wednesday, cutting petrol prices by ₹5 per litre and diesel prices by ₹3 per litre across its network of nearly 7,000 fuel stations.
Factors Influencing Fuel Prices in India
The final price consumers pay at the pump for petrol and diesel in India is a complex interplay of several global, economic, and domestic factors:
- International Crude Oil Prices: This is the primary determinant, as crude is the raw material for both fuels. Fluctuations in global crude markets have the most significant impact.
- Rupee-Dollar Exchange Rate: India heavily relies on imported crude. A weaker rupee against the dollar increases the cost of procurement, which can lead to higher retail prices.
- Central and State Taxes: Both central and state governments levy substantial taxes on fuel, which form a significant portion of the final retail price. This is why prices vary considerably across different states.
- Transportation Costs: The cost of transporting fuel from refineries to distribution points and then to retail stations also adds to the final price.
- Demand-Supply Dynamics: Local and regional demand and supply conditions can also play a role in price adjustments.