Petrol and diesel prices across India remained largely unchanged on July 8, continuing a period of stability since May 25. This holds despite Brent crude oil falling to a four-month low due to easing geopolitical tensions.
Union Petroleum and Natural Gas Minister Hardeep Singh Puri stated that domestic fuel retailers are still processing inventories of higher-priced crude oil acquired during the peak of the West Asia crisis, delaying any immediate consumer price cuts.
Latest Fuel Prices in Major Indian Cities
The last significant revision in fuel prices occurred on May 25, when state-owned Oil Marketing Companies (OMCs) increased petrol by ₹2.61 per litre and diesel by ₹2.71 per litre.
- 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 ₹111.68/litre, Diesel ₹99.56/litre
- Chennai: Petrol ₹107.76/litre, Diesel ₹99.55/litre
In a separate development, Rosneft-backed Nayara Energy recently reduced petrol prices by ₹5 per litre and diesel by ₹3 per litre across its network of nearly 7,000 fuel stations.
Understanding Fuel Price Dynamics in India
Several global, economic, and domestic factors collectively determine the retail price of petrol and diesel at the pump:
- International Crude Oil Prices: As the primary raw material, the global price of crude oil has the most significant impact on final fuel costs.
- Rupee-Dollar Exchange Rate: India heavily relies on imported crude. A weaker rupee against the US dollar increases the cost of crude procurement, potentially leading to higher retail prices.
- Government Taxes: Both central and state governments levy substantial taxes, forming a significant portion of the final price and explaining price variations across different states.
- Transportation Costs: The cost of transporting fuel from refineries to distribution points and then to retail outlets also contributes to the final consumer price.
- Demand-Supply Conditions: Local demand and supply dynamics can also influence retail pricing.