Fuel prices across major Indian cities saw minimal changes on August 1, continuing a trend of stability that has largely held since May 25. On that date, state-owned Oil Marketing Companies (OMCs) had increased petrol prices by ₹2.61 per litre and diesel prices by ₹2.71 per litre.
Despite a slight dip in global oil prices last week amid hopes for resumed shipping via the Strait of Hormuz, domestic fuel rates remained consistent for the day.
Current Fuel Rates in Key Cities (August 1):
- Delhi: Petrol 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 ₹115.73 per litre, Diesel at ₹103.82 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 ₹107.87 per litre, Diesel at ₹99.65 per litre.
Most major cities continue to see petrol prices above the ₹110 mark, with diesel generally below ₹100, except in Hyderabad.
Factors Influencing India's Fuel Prices
Several critical factors determine the retail price of petrol and diesel in India:
- International Crude Oil Prices: As the primary raw material, global crude oil rates have the most significant impact on domestic fuel costs. Fluctuations in international markets directly affect what OMCs pay.
- Rupee-Dollar Exchange Rate: India heavily relies on imported crude oil. A weakening Indian Rupee against the US Dollar increases the cost of crude procurement, leading to higher retail prices.
- Central and State Taxes: Both central and state governments levy various taxes on fuel, comprising a substantial portion of the final retail price. This is the primary reason for price disparities across different states.
- Transportation Costs: The cost of transporting fuel from refineries to various cities also adds to the overall retail price.
- Demand-Supply Dynamics: Local demand and supply conditions can also play a role in minor price adjustments at the pump.