Fuel Prices Steady After Recent Jumps
Petrol and diesel prices across India held steady on May 28, 2026, after a period of significant increases. These recent hikes, including four in the past two weeks, were largely attributed to volatility in global energy markets. Factors such as the ongoing US-Iran conflict and the closure of the Strait of Hormuz have contributed to elevated crude oil prices, which have surpassed $100 per barrel.
Oil marketing companies have been adjusting prices to recover losses accumulated over months. In the latest series of revisions, petrol prices climbed by ₹2.61 per litre, and diesel rates rose by ₹2.71 per litre.
City-Wise Fuel Rates on May 28
As of May 28, fuel prices in major Indian metropolitan areas are as follows:
- Delhi: Petrol ₹102.12 per litre, Diesel ₹95.20 per litre
- Mumbai: Petrol ₹111.18 per litre, Diesel ₹97.83 per litre
- Hyderabad: Petrol ₹115.73 per litre, Diesel ₹103.82 per litre
- Kolkata: Petrol ₹113.51 per litre, Diesel ₹99.82 per litre
Other major cities also saw similar price trends:
- Bengaluru: Petrol ₹110.89 per litre, Diesel ₹98.80 per litre
- Chennai: Petrol ₹107.77 per litre, Diesel ₹99.55 per litre
Understanding India's Fuel Price Dynamics
Several critical factors influence the retail price of petrol and diesel in India. The most significant is the international price of crude oil, which serves as the fundamental raw material. Fluctuations in global crude markets directly impact the cost for Indian consumers.
The exchange rate between the Indian Rupee and the US Dollar also plays a crucial role. Since India heavily relies on crude oil imports, a weakening Rupee makes crude procurement more expensive, leading to higher retail fuel prices.
Furthermore, both central and state governments levy various taxes on fuel, which constitute a substantial portion of the final pump price. This taxation structure is a primary reason why petrol and diesel rates vary significantly from one state or city to another. Additional factors like transportation costs and local demand-supply conditions also contribute to the final price consumers pay.