Petrol And Diesel Prices Hold Steady On June 12; Brent Crude Slips Below $90

Petrol and diesel prices remained unchanged across major Indian cities on June 12, following a series of increases announced over the past month. The latest revision had raised petrol and diesel prices by ₹2.60 per litre and ₹2.70 per litre, respectively, taking cumulative increases since May to around ₹7.5-₹8 per litre.

Retail fuel prices continue to stay elevated after global crude oil markets witnessed sharp volatility amid geopolitical tensions in West Asia. Although domestic rates were unchanged on Friday, market participants remain focused on developments in international energy markets, which play a key role in determining fuel costs in India.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

Petrol And Diesel Rates In Major Cities

Crude Oil Extends Decline

Global crude oil prices moved lower on Friday after indications of progress in negotiations between the U.S. and Iran eased concerns over prolonged supply disruptions in the Middle East.

Brent crude traded at $88.79 per barrel after ending the previous session at a two-month low. U.S. benchmark West Texas Intermediate hovered near $86 per barrel.

The decline followed comments by U.S. President Donald Trump, who said a peace agreement with Iran could be signed as early as this weekend. According to statements made at the White House, discussions are continuing in Europe, though negotiations have not yet been finalised.

Oil prices had climbed significantly over the past few weeks because of concerns about the situation prevailing around the region and the potential impact on fuel supply through critical trade routes. Recent developments suggest a possibility that the supply may not be a concern any longer if diplomatic talks prove to be successful.

What Factors Affect Fuel Prices in India?

In India, fuel prices are affected by changes in the price of crude oil in the international market, since India imports a considerable portion of its energy needs.

The rupee’s exchange rate against the U.S. dollar is another important factor because crude purchases are settled in dollars. In addition, central excise duty, state-level VAT and other levies contribute significantly to the final retail price paid by consumers.

Because state taxes differ across regions, petrol and diesel prices vary from one city to another despite uniform pricing by oil marketing companies at the refinery level.