Fuel prices across India saw little change on July 10, maintaining the rates established after state-owned Oil Marketing Companies (OMCs) increased petrol by ₹2.61 per litre and diesel by ₹2.71 per litre on May 25. This stability comes despite a recent uptick in global energy prices, influenced by renewed US strikes on Iran, which pushed Brent crude futures over $1 higher to $79.28 per barrel in post-settlement trading on Wednesday.
While global crude prices have seen fluctuations, they remain considerably below the late-April peak of over $120 per barrel, a period when the Strait of Hormuz closure significantly impacted energy markets.
Current Fuel Prices in Key Indian Cities (July 10)
- Delhi: Petrol ₹102.12/litre, Diesel ₹95.20/litre
- Mumbai: Petrol ₹111.21/litre, Diesel ₹97.83/litre
- Hyderabad: Petrol ₹115.69/litre, Diesel ₹103.82/litre
- Kolkata: Petrol ₹113.51/litre, Diesel ₹99.82/litre
- Bengaluru: Petrol ₹110.44/litre, Diesel ₹98.39/litre
- Chennai: Petrol ₹107.94/litre, Diesel ₹99.71/litre
Most major cities, including Bengaluru, Hyderabad, and Kolkata, continue to see petrol prices above ₹110 per litre. Diesel prices largely stay below ₹100, with the notable exception of Hyderabad, where it retails at ₹103.82 per litre.
In a separate development, Rosneft-backed Nayara Energy implemented a reduction last week, lowering petrol prices by ₹5 per litre and diesel by ₹3 per litre across its extensive network of nearly 7,000 fuel stations.
Understanding India's Fuel Price Dynamics
The retail price of petrol and diesel in India is a complex interplay of several factors:
Global Crude Oil & Exchange Rate
The international price of crude oil is the primary determinant, as it's the raw material for both fuels. India's heavy reliance on crude imports means the rupee-dollar exchange rate also plays a crucial role. A weaker rupee increases the cost of procurement, potentially leading to higher retail fuel prices.
Taxes and Local Factors
Both central and state governments levy significant taxes, which form a substantial portion of the final price consumers pay. These varying tax structures are a key reason for price differences across states. Additionally, transportation costs and local demand-supply conditions contribute to the final retail price at the pump.