Petrol, Diesel Prices Continue Climbing Across Mumbai, Hyderabad, Kolkata And Chennai

Petrol and diesel prices across India remained largely stable on May 20 after back-to-back hikes earlier this month amid rising global crude oil prices and growing geopolitical tensions linked to the ongoing US-Iran conflict. Oil marketing companies had recently increased fuel prices by Rs 3 and later by around 90 paise within a span of four days as they faced mounting pressure from elevated crude costs.

In Delhi, petrol is currently priced at Rs 98.64 per litre following an 87-paise increase, while diesel costs Rs 91.58 per litre after a 91-paise hike. Mumbai recorded petrol prices at Rs 107.59 per litre, up by 91 paise, while diesel rose 94 paise to Rs 94.08 per litre. Fuel rates in other major cities such as Hyderabad, Kolkata and Chennai also remained mostly unchanged on Tuesday, with only marginal variations of a few paise.

The recent price revisions come after a sharp surge in Brent crude prices since the United States and Israel launched strikes on Iran at the end of February. Global benchmark Brent crude has rallied more than 50 percent during the period, significantly increasing the cost burden on Indian state-run oil marketing companies. Public sector retailers have reportedly been selling petrol and diesel below market-linked prices, leading to substantial daily losses.

Also Read: US Waiver On Russian Oil Expires, Triggering Concerns Over Indian Fuel Prices

Last week, Union Petroleum Minister Hardeep Singh Puri said oil marketing companies may not be able to continue absorbing losses estimated at nearly Rs 1,000 crore per day. His remarks reflected concerns within the sector over sustaining subsidised retail fuel prices while international oil prices remain volatile due to geopolitical uncertainty in the Middle East.

Globally, oil prices showed limited movement on Wednesday as markets assessed fresh comments from US President Donald Trump regarding Iran. Brent crude traded below $111 per barrel after slipping 0.7 percent in the previous session, while West Texas Intermediate hovered near $104 per barrel. Despite the slight pullback, crude prices remain elevated as tensions continue to threaten supply routes in one of the world’s most critical oil-producing regions.

Fuel prices in India are determined by several factors, including global crude oil rates, the rupee-dollar exchange rate, central excise duty and state-level value-added tax (VAT). Since India imports a large portion of its crude oil requirements, fluctuations in international prices and currency movements directly impact domestic petrol and diesel rates, leading to varying prices across different cities.

Also Read: CEO Says Work From Home Can Save 6 Lakh Litres Of Fuel In One City