Petrol and diesel prices across India held largely steady on August 17, maintaining the rates that have been in effect since May 25. This stability comes despite a recent dip in global oil prices last week, influenced by developments in the US-Iran situation and hopes for renewed shipping activity via the Strait of Hormuz.
State-owned Oil Marketing Companies (OMCs) last adjusted prices significantly on May 25, increasing petrol by ₹2.61 per litre and diesel by ₹2.71 per litre. Since then, consumers have seen consistent pricing at the pumps.
Current Fuel Prices in Major Indian Cities (August 17)
- Delhi: Petrol ₹102.12 per litre, Diesel ₹95.20 per litre
- Mumbai: Petrol ₹111.21 per litre, Diesel ₹97.83 per litre
- Hyderabad: Petrol ₹115.69 per litre, Diesel ₹103.82 per litre
- Kolkata: Petrol ₹113.51 per litre, Diesel ₹99.82 per litre
- Bengaluru: Petrol ₹111.68 per litre, Diesel ₹99.56 per litre
- Chennai: Petrol ₹107.76 per litre, Diesel ₹99.55 per litre
Notably, petrol prices in Delhi remain above the ₹100 mark, while Mumbai continues to see petrol retailing over ₹110 per litre. Hyderabad stands out with both petrol and diesel prices exceeding ₹100 per litre.
Factors Influencing Fuel Costs in India
Several critical factors combine to determine the final 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.
- Rupee-Dollar Exchange Rate: India heavily relies on imported crude. A weaker rupee against the US dollar increases the cost of procurement, which can lead to higher retail prices.
- Government Taxes: Both central and state governments levy various taxes on fuel, which constitute a substantial portion of the final price. This is a key reason why prices differ considerably across states.
- Transportation Costs: The cost of transporting refined fuel from refineries to various distribution points also contributes to the retail price.
- Demand-Supply Dynamics: Local demand and supply conditions can also play a role in minor price adjustments at the pump.
These combined elements create a complex pricing structure, leading to the variations observed across different cities and regions.