Petrol and diesel prices across India held steady on June 29, with no changes reported by state-owned fuel retailers. This marks over a month of stability since the last nationwide hike on May 25, when petrol prices rose by ₹2.61 per litre and diesel by ₹2.71 per litre.
The current stability comes amidst a backdrop of global crude markets remaining on edge due to ongoing tensions in West Asia and disruptions affecting key shipping routes. Despite these international pressures, domestic fuel rates have not been adjusted.
Current Fuel Prices in Major Indian Cities (June 29)
- Delhi: Petrol ₹102.12 per litre, Diesel ₹95.20 per litre
- Mumbai: Petrol ₹111.21 per litre, Diesel ₹97.83 per litre
- Kolkata: Petrol ₹113.51 per litre, Diesel ₹99.82 per litre
- Chennai: Petrol ₹107.76 per litre, Diesel ₹99.55 per litre
- Bengaluru: Petrol ₹111.68 per litre, Diesel ₹99.56 per litre
- Hyderabad: Petrol ₹115.69 per litre, Diesel ₹103.82 per litre
In most major cities, petrol continues to retail above the ₹100 mark, while diesel prices remain below ₹100, with the notable exception of Hyderabad, where it has crossed the century mark.
Factors Influencing Fuel Prices in India
The retail price of petrol and diesel at the pump in India is determined by a complex interplay of several global, economic, and domestic factors:
- International Crude Oil Prices: As India heavily relies on imported crude, the global price of crude oil is the single most significant factor influencing domestic fuel costs. Fluctuations in international benchmarks directly impact procurement costs.
- Rupee-Dollar Exchange Rate: Since crude oil is traded in US dollars, a weakening Indian Rupee against the dollar makes crude imports more expensive, which can translate into higher retail fuel prices.
- Government Taxes: Both the central and state governments levy various taxes (excise duty, VAT) on petrol and diesel. These taxes constitute a substantial portion of the final retail price and are a primary reason why prices vary significantly across different states.
- Transportation Costs: The cost of transporting refined 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 minor price adjustments at the retail level.
These combined elements ensure that while global factors set the baseline, domestic policy and logistics shape the final price consumers pay at the pump.