Petrol, Diesel Rates Remain Stable In Major Cities Amid Global Market Volatility

Petrol and diesel prices across India remained largely stable on June 6, with only minor changes in select cities, even as fuel rates continue to hover at elevated levels following a sustained period of increases linked to volatility in global crude oil markets. Retail fuel prices have seen multiple hikes in recent weeks, with petrol and diesel reportedly increasing by around ₹7.5 to ₹8 per litre since the beginning of heightened geopolitical tensions involving the US and Iran.

The most recent adjustment, earlier this month, saw an increase of ₹2.6 per litre for petrol and ₹2.7 per litre for diesel, adding further pressure on consumers already facing high transport and logistics costs. On June 6, however, state-run oil marketing companies kept benchmark prices largely unchanged. In the national capital Delhi, petrol was priced at ₹102.12 per litre, while diesel stood at ₹95.20 per litre. The stability in pricing comes after a series of upward revisions over the past several weeks that have pushed fuel costs significantly higher across major Indian cities.

Price variations across states remain substantial due to differences in local taxation structures, including state VAT and transportation costs. In Kolkata, petrol was recorded at ₹113.51 per litre and diesel at ₹99.82 per litre. Mumbai saw petrol priced at ₹112.21 per litre and diesel at ₹97.83 per litre, while Chennai reported petrol at ₹108.01 and diesel at ₹99.66 per litre. In Hyderabad, petrol touched ₹115.73 per litre and diesel ₹103.82 per litre, whereas Bengaluru recorded petrol at ₹110.89 and diesel at ₹98.80 per litre.

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The recent volatility in domestic fuel prices has been driven largely by fluctuations in global crude oil markets. Brent crude futures settled at $93.09 per barrel, while West Texas Intermediate (WTI) crude stood at $90.54 per barrel, reflecting a marginal decline amid easing concerns over an immediate escalation in US-Iran tensions. However, crude prices remain elevated compared to earlier levels, keeping pressure on import-dependent economies like India.

Market analysts note that while crude prices saw a brief correction, earlier spikes were triggered by geopolitical uncertainty in the Middle East, particularly around the Strait of Hormuz, a key global oil transit route. At the same time, concerns around global demand trends, inventory levels, and rerouted supply chains have continued to influence price movements.

Fuel pricing in India is determined by a combination of factors, including global crude oil rates, exchange rate fluctuations between the rupee and US dollar, and domestic taxation policies such as excise duty and state VAT. These components collectively explain the wide variation in retail fuel prices across different states.

Oil marketing companies such as Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum follow a dynamic pricing system under which rates are reviewed daily. However, actual retail price changes depend on broader market conditions and policy considerations, meaning prices do not necessarily change every day despite daily reviews.

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