Fuel prices for petrol and diesel across India held steady on September 4, according to the latest updates from state-owned Oil Marketing Companies (OMCs). This stability comes despite recent global oil market volatility, including renewed US-Iran hostilities and concerns over disruptions in the Strait of Hormuz, which are pushing crude oil prices towards their most significant weekly gain since July.
Current Rates in Major Indian Cities
Residents in major metropolitan areas saw no changes in fuel costs today. The last significant adjustment to retail prices occurred on May 25, when petrol saw an increase of ₹2.61 per litre and diesel rose by ₹2.71 per litre.
- Delhi: Petrol remains priced at ₹102.12 per litre, with diesel at ₹95.20 per litre.
- Mumbai: Petrol is at ₹111.31 per litre, and diesel at ₹97.97 per litre.
- Hyderabad: Petrol costs ₹115.69 per litre, and diesel is ₹103.82 per litre.
- Kolkata: Petrol is sold at ₹113.51 per litre, while diesel is ₹99.82 per litre.
- Bengaluru: Petrol stands at ₹110.82 per litre, and diesel at ₹98.77 per litre.
- Chennai: Petrol is ₹107.78 per litre, and diesel is ₹99.56 per litre.
Factors Influencing India's Fuel Prices
The retail price of petrol and diesel in India is a complex interplay of several factors, both international and domestic:
International Crude Oil Prices
As India heavily relies on crude oil imports, global crude prices are the primary determinant of local fuel costs. Fluctuations in international markets directly impact the base price OMCs pay.
Rupee-Dollar Exchange Rate
Since crude oil is traded in US dollars, the exchange rate between the Indian Rupee and the US Dollar plays a crucial role. A weaker rupee makes crude imports more expensive, potentially leading to higher retail fuel prices.
Government Taxes and Duties
Both the central and state governments levy various taxes, including excise duty and Value Added Tax (VAT), on petrol and diesel. These taxes constitute a substantial portion of the final price and are a key reason for price variations across different states.
Logistics and Demand-Supply
Transportation costs from refineries to retail outlets, along with local demand and supply dynamics, also contribute to the final price consumers pay at the pump.