Petrol And Diesel Rates Hold Steady On June 4; Check Prices In Major Cities

Fuel prices in major cities across India remained largely unchanged on June 4 after several upward revisions in the past few weeks. Retail fuel rates remain high as oil marketing companies have raised prices for the fourth time in the last 20 days, including the latest hike of Rs 2.60 per litre for petrol and Rs 2.70 per litre for diesel.

Fuel prices have risen sharply since the start of the U.S.-Iran conflict, following recent revisions that have pushed them considerably higher. Consequently, world crude oil prices have risen sharply. Higher international oil prices have increased pressure on domestic fuel retailers and widened concerns over energy costs.

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Fuel Prices In Major Cities

Among the metros, Hyderabad continued to record the highest petrol price at ₹115.73 per litre, while Delhi remained the least expensive among the six major cities listed. Differences in fuel rates across states arise mainly due to variations in value-added tax (VAT) and local levies imposed by state governments.

Global Oil Prices Ease

International crude oil prices moved lower on June 4 after advancing sharply earlier in the week. Brent crude slipped toward $97 per barrel, while West Texas Intermediate traded near $95 per barrel.

The fall came after reports of a conditional ceasefire agreement between Israel and Lebanon raised hopes of a wider easing of tensions in the region. Market participants are also watching closely the talks around Iran, which is a key player in the world's energy supply picture.

Despite the recent pullback, crude oil benchmarks are still substantially higher than levels seen before the escalation of conflict in West Asia. High energy prices continue to affect the fuel pricing choices in big importing countries like India.

Factors Affecting Fuel Prices

India imports a huge chunk of its oil needs and the retail prices of fuel are largely dependent on international crude oil prices. Also, these prices are dependent on the value of rupee. A weaker currency makes imported crude expensive.

Taxes from both central and state governments make up a big part of what you pay at the pump. Plus, there’s the cost of getting fuel to the station and selling it, which includes transportation, refining, and dealers’ fees.

Petrol and diesel prices are reviewed every day under something called the dynamic pricing mechanism. Yet, pumps don’t change rates after every review. Prices often stay the same for long stretches even when crude costs or currency fluctuate, based on how the markets actually move.