Petrol And Diesel Prices Hold Steady On June 3; Check Rates In Major Cities

Prices of petrol and diesel remained steady in major cities in India on June 3 despite the recently revised rates of both fuels set by various oil marketing firms. This is happening despite the continued rise in prices of global crude oil amid political tensions and worries over the availability of energy resources in West Asia.

Fuel prices rose for the fourth time during the second week of May, with an increase made on May 25. These revisions saw increases of ₹2.61 and ₹2.71 in the cost of one litre of petrol and diesel, respectively.

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Global crude oil prices have crossed the $100 mark per barrel, leading to increased rates of retail fuel in order to compensate for the higher costs. Petrol rates exceeded important thresholds in major cities such as Delhi and Mumbai.

Fuel Prices In Major Cities On June 3

In the national capital, petrol is retailing at ₹102.12 per litre, while diesel is priced at ₹95.20 per litre. Mumbai continues to record among the highest fuel prices among major metros, with petrol at ₹111.21 per litre and diesel at ₹97.83 per litre.

What Determines Fuel Prices?

There are many factors that impact the prices of retail fuels in India, but the prices of crude oils in the international market remain the most important factor influencing the Indian retail fuel prices. As most of the crude oil needed is imported from other countries, changes in the international energy sector have a direct impact on the price of domestic fuel.

Another important factor is the movement of rupee with respect to the U.S. dollar. The weakening of the rupee results in higher import costs, hence impacting the domestic fuel prices as well. The taxes imposed by both central and state governments constitute an essential part of the retail price as well.

Why Do Fuel Rates Vary According to State?

In addition, there is a difference in the amount of VAT and other state taxes collected from retailers for fuel in various cities in India. Fuel rates have been stable lately despite fluctuations in the movement of crude oil prices in the global market and currency exchanges.

However, these two elements would continue to play an important role in deciding future fuel rates.