Petrol and Diesel Rates Hold Steady on May 18 After Recent Hike

Petrol and diesel prices remained unchanged across key Indian cities on May 18 following the increase of nearly ₹3 per litre implemented on Friday. The latest revision came amid volatility in global crude oil markets linked to tensions in West Asia and disruption to shipping movement through the Strait of Hormuz.

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In Delhi, petrol is retailing at ₹97.77 per litre, while diesel is priced at ₹90.67 per litre. The recent increase in fuel rates across metro cities ranged between ₹2.83 and ₹3.29 per litre.

Mumbai continued to record the highest fuel prices among major metros. Petrol is being sold at ₹106.68 per litre in the city, while diesel costs ₹93.14 per litre. In Hyderabad, petrol prices remained close to the ₹111 per litre mark.

Fuel Prices in Major Cities on May 18

Gasoline and diesel prices are changed on a daily basis depending upon international crude price benchmarks and foreign exchange movements. Levies at the state level, along with transportation costs, can also cause variations in prices in different urban areas.

Impact of Global Crude Prices on Domestic Prices

The international crude oil price continues to be an important determinant for fuel prices in India. Any substantial change in international oil benchmarks will have implications on the prices of imported oil, which will eventually affect the domestic prices.

One more vital factor affecting fuel prices is the rupee-U.S. dollar exchange rate, since India is an importer of oil. A weaker rupee increases import expenses for oil marketing companies, which can raise pump prices.

The latest hike in fuel rates followed concerns over supply disruptions in global oil markets after tensions escalated in West Asia. Shipping activity through the Strait of Hormuz, one of the world’s key crude transit routes, has also remained under pressure.

Why Fuel Prices Differ Across Cities

Petrol and diesel prices vary from state to state mainly because of differences in value-added tax (VAT) imposed by local governments. Central excise duty, dealer commissions, and freight charges are also added to the final retail price.

Fuel stations further away from the fuel storage stations may incur slightly higher transport costs, which could affect the pump prices.

The state-owned firms dealing with oil marketing have been keen to follow the developments in the international crude oil prices and foreign exchange rates. The prices of the fuel have been adjusted every day.