Petrol and diesel prices across India remained largely unchanged on June 1, providing temporary relief to consumers after a series of fuel price hikes over the past two weeks. Oil marketing companies had increased petrol and diesel prices four times during the period, with the most recent revision raising petrol prices by Rs 2.60 per litre and diesel prices by Rs 2.70 per litre. Since the beginning of the ongoing US-Iran conflict, fuel prices have risen by approximately Rs 7.50 to Rs 8 per liter as global crude oil markets experienced significant volatility.
Despite the pause in major revisions, fuel prices remain elevated in most metropolitan cities. In Delhi, petrol is being sold at Rs 102.12 per litre, while diesel is priced at Rs 95.20 per litre. Mumbai continues to record some of the highest fuel prices among major cities, with petrol costing Rs 112.21 per litre and diesel priced at Rs 97.83 per litre. In Kolkata, petrol is retailing at Rs 113.51 per litre and diesel at Rs 99.82 per litre, while Chennai residents are paying Rs 108.01 per litre for petrol and Rs 99.66 per litre for diesel.
Fuel costs remain even higher in several southern cities. Hyderabad recorded petrol prices of Rs 115.73 per litre and diesel prices of Rs 103.82 per litre, making it one of the costliest markets in the country. In Bengaluru, petrol was priced at Rs 110.89 per litre, while diesel stood at Rs 98.80 per litre. The variations in prices across cities are primarily driven by differences in state taxes and local levies imposed on petroleum products.
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The recent surge in fuel prices has been closely linked to developments in the global energy market. Ongoing tensions in the Middle East and disruptions to oil supplies have pushed international crude oil prices significantly higher. State-owned oil companies are reportedly facing substantial financial pressure due to rising import costs, with losses running into thousands of crores of rupees daily amid elevated crude prices and challenges in passing on the full burden to consumers.
Global oil prices showed signs of recovery on Monday after reaching six-week lows at the end of last week. Brent crude traded near $93 per barrel, while West Texas Intermediate hovered around $89 per barrel. Investors are closely monitoring diplomatic efforts between the United States and Iran, as any agreement could lead to the reopening of the Strait of Hormuz, one of the world’s most important energy transit routes and a critical artery for global oil shipments.
Fuel prices in India are influenced by several factors beyond international crude oil rates. The rupee’s exchange rate against the US dollar plays a key role because India imports a significant portion of its crude oil requirements. Additionally, central excise duties, state value-added taxes, transportation costs, and dealer commissions contribute to the final retail price paid by consumers. These combined factors explain why petrol and diesel rates continue to differ significantly from one city to another despite nationwide pricing policies.
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