Fuel prices in India held steady on June 1, 2026, across major cities like Delhi, Mumbai, Hyderabad, and Kolkata. This stability follows a series of recent increases, with the latest hike implemented on Monday, May 27.
The recent revisions have seen petrol prices rise by ₹2.61 per litre and diesel by ₹2.71 per litre over the past two weeks. These adjustments are primarily attributed to oil marketing companies working to recover accumulated losses amidst a volatile global energy market.
Global Factors Drive Price Volatility
International crude oil prices have remained elevated, crossing the $100 per barrel mark. This surge is largely influenced by the ongoing US-Iran conflict and the subsequent closure of the Strait of Hormuz, a critical chokepoint for global oil shipments. Such geopolitical tensions significantly impact the supply and cost of crude oil worldwide.
Current Fuel Prices in Major Cities (June 1, 2026):
- 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 ₹110.89 per litre, Diesel ₹98.80 per litre
- Chennai: Petrol ₹107.87 per litre, Diesel ₹99.65 per litre
Understanding India's Fuel Pricing Mechanism
Several factors contribute to the final retail price of petrol and diesel at the pump in India:
- International Crude Oil Prices: As India imports a significant portion of its crude oil, global prices have the most substantial impact on domestic rates.
- Rupee-Dollar Exchange Rate: A weaker Indian Rupee against the US Dollar increases the cost of crude oil imports, directly affecting retail fuel prices.
- Central and State Taxes: Both the central and state governments levy various taxes (excise duty, VAT) on fuel, which constitute a significant portion of the final price and explain regional price disparities.
- Transportation Costs: The cost of transporting refined fuel from depots to retail outlets also adds to the final consumer price.
- Demand-Supply Dynamics: Local demand and supply conditions can also influence prices, though to a lesser extent than global crude rates and taxes.