Fuel Prices Hold Steady On May 29 After Recent Hikes; Check Petrol And Diesel Rates Across Major Cities

Petrol and diesel prices were mostly unchanged across major Indian cities on May 29, following a series of sharp increases earlier this month linked to rising global crude oil prices.

State-run oil marketing companies had raised fuel prices four times in less than 12 days, pushing petrol and diesel rates higher by nearly ₹7.5-8 per litre since the beginning of the U.S.-Iran conflict.

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In Delhi, petrol continued to retail at ₹102.12 per litre, while diesel stood at ₹95.20 per litre. Fuel prices in several other cities also remained near recent highs, with petrol rates crossing ₹115 per litre in Hyderabad.

According to industry estimates, oil marketing companies are currently facing daily losses of around ₹1,600-1,700 crore due to elevated crude prices and supply disruptions linked to the ongoing geopolitical situation in West Asia.

Petrol And Diesel Prices On May 29

Crude Oil Prices Extend Decline

Global oil prices moved lower on Friday as markets reacted to signs of progress in negotiations between the U.S. and Iran.

Brent crude traded near $93 per barrel and was headed for its steepest monthly decline since 2020. West Texas Intermediate crude hovered around $88 per barrel after recent volatility triggered by concerns over disruptions in the Strait of Hormuz.

The investor mood has been buoyed by reports stating that the U.S. and Iran were considering the extension of their current cease-fire deal for another 60 days. The reports further noted that the talks took into account steps that would ensure the unhindered passage of ships through the Strait of Hormuz.

Although the recent fall in crude oil prices, Indian domestic fuel prices have been high owing to the previous hikes in prices undertaken by oil marketers.

What Determines Fuel Prices In India?

Price of petrol and diesel for retail customers is primarily dependent on international crude rates because India imports a substantial part of its requirements of crude oil.

Exchange rate between the Indian rupee and the United States dollar also affects the price of fuel due to the effect it has on import expenses.

Moreover, the central excise duties and value-added taxes levied on fuel by various states play a major role in determining the overall cost borne by the customers.

Difference between state-level levies on fuel is the main cause behind disparity in fuel prices in different cities.

Petrol and diesel prices are revised daily depending upon the international crude rates and the exchange rate between the two currencies.