Fuel prices across major Indian cities remained unchanged on May 29, after experiencing a significant hike earlier in the week. This stabilization follows a period of volatility in global energy markets, largely influenced by geopolitical tensions such as the ongoing US-Iran conflict and concerns over the Strait of Hormuz, which have kept crude oil prices elevated.
The recent increase marked the fourth hike in just two weeks. Cumulatively, petrol prices have risen by ₹2.61 per litre, and diesel by ₹2.71 per litre. These revisions are part of oil marketing companies' efforts to recover losses accumulated over several months, especially as international crude oil prices surpassed the $100 per barrel mark.
Current Fuel Prices Across Major Cities (May 29)
- Delhi: Petrol ₹102.12 per litre, Diesel ₹95.20 per litre.
- Mumbai: Petrol ₹111.18 per litre, Diesel ₹97.83 per litre.
- Hyderabad: Petrol ₹115.69 per litre, Diesel ₹103.82 per litre.
- Kolkata: Petrol ₹113.51 per litre, Diesel ₹99.82 per litre.
- Bengaluru: Petrol ₹110.89 per litre, Diesel ₹98.80 per litre.
- Chennai: Petrol ₹107.85 per litre, Diesel ₹99.66 per litre.
Factors Influencing Fuel Costs in India
Retail fuel prices in India are shaped by a complex interplay of global and domestic economic factors. The international price of crude oil is the most significant determinant, as it forms the fundamental cost of petrol and diesel before processing.
Another crucial variable is the rupee-dollar exchange rate. India relies heavily on crude oil imports, meaning a weaker rupee against the dollar directly increases the cost of procurement, which is then passed on to consumers. Furthermore, both central and state governments levy various taxes, which constitute a substantial portion of the final retail price. This taxation structure is a primary reason for the differing fuel rates across various states. Additional factors like transportation costs and local demand-supply dynamics also contribute to the final price consumers pay at the pump.