Petrol, Diesel Prices On June 2: Check Latest Fuel Rates Across Major Cities

Petrol and diesel prices across India remained largely unchanged on June 2, following a series of fuel price hikes over the previous 20 days. The latest increase, implemented last week, raised petrol prices by Rs 2.60 per litre and diesel prices by Rs 2.70 per litre. While minor fluctuations of a few paise were reported in some locations, there was no significant revision in retail fuel rates on Tuesday.

The recent increases have pushed fuel prices substantially higher since the beginning of the US-Iran conflict, with petrol and diesel rates rising by approximately Rs 7.50 to Rs 8 per litre. In Delhi, petrol is currently priced at Rs 102.12 per litre, while diesel costs Rs 95.20 per litre. Rising international crude oil prices have increased pressure on oil marketing companies, contributing to higher fuel costs for consumers across the country.

Global oil markets remained a key focus for traders as crude prices steadied after recording their biggest daily gain in nearly a month. Brent crude was trading just below $95 per barrel, while West Texas Intermediate hovered around $92 per barrel. Market sentiment has been driven by uncertainty surrounding US-Iran negotiations and concerns that prolonged tensions in the Middle East could disrupt global energy supplies.

Also Read: Petrol Diesel Prices Unchanged On May 29 In Delhi Mumbai And Other Cities

Fuel prices in India are influenced by several factors, the most important being international crude oil prices, as crude oil is the primary raw material used to produce petrol and diesel. The rupee-dollar exchange rate also plays a significant role because India imports a large share of its crude oil requirements. In addition, central excise duties and state-level value-added taxes (VAT) contribute substantially to the final retail price paid by consumers.

Under India's dynamic fuel pricing mechanism, state-owned oil marketing companies such as Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited review fuel prices daily. However, daily reviews do not necessarily result in daily changes. Companies often maintain existing rates for extended periods depending on market conditions, government policies, and pricing considerations.

Petrol and diesel continue to remain outside the Goods and Services Tax (GST) regime. Instead, they are taxed through a combination of central excise duty and state-specific VAT or sales tax, leading to significant price differences between cities and states. As global crude prices remain volatile, consumers and industry stakeholders will continue to monitor developments in international energy markets for indications of future fuel price movements.

Also Read: Petrol And Diesel Rates Unchanged On May 14 In Delhi, Mumbai And More Cities