Petrol And Diesel Prices Hold Steady On June 5; Check Latest Rates Across Major Cities

Petrol and diesel prices remain unchanged in major Indian cities on June 5 after a series of hikes in May pushed retail fuel rates to their highest in over two years. Oil marketing companies (OMCs) last revised prices on May 25, raising petrol by ₹2.61 per litre and diesel by ₹2.71 per litre.

The latest revision marked the fourth increase since May 15. The cumulative increase in fuel prices during the period has translated into a nearly ₹7.5 per litre increase in retail prices, reflecting the effect of rising global crude oil prices and supply concerns due to tensions in West Asia.

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Fuel Prices In Major Cities

The following are the prevailing petrol and diesel prices on June 5:

West Asia Conflict Continues To Influence Fuel Costs

Fuel prices have remained under pressure since crude oil markets reacted sharply to disruptions caused by the conflict in West Asia. India imports a significant share of its energy requirements from Gulf nations, making domestic fuel prices sensitive to developments in the region.

The recent increases followed a delayed pass-through of rising crude oil prices. Retail fuel prices had not seen any change for more than two years, barring a reduction of ₹2 a litre announced in March 2024.

The rise in crude prices has led to higher input costs for refiners and fuel retailers, which led to successive revisions in May.

Oil Market Remains Volatile Globally

International oil prices were little changed on June 5 as markets continued to weigh geopolitical developments and supply risks.

Brent crude futures were trading near $95.24 per barrel, down 0.22%, while U.S. West Texas Intermediate crude was around $92.94 per barrel, lower by 0.11%. Although both benchmarks declined in the previous session, they remain on track to record weekly gains after recent tensions in the Middle East raised concerns over global supply routes.

Market attention remains focused on the Strait of Hormuz, a key shipping corridor that handles a substantial share of the world’s seaborne oil trade. Crude prices have stayed high in the face of sporadic signs of diplomatic progress in the region, with supply disruptions and lower inventories playing a part.

How Fuel Prices Are Determined

Retail petrol and diesel prices in India are set by international crude oil rates, refinery costs, freight charges, the rupee-dollar exchange rate and central and state taxes. Fuel prices aren’t uniform across cities because state-level levies aren’t uniform across regions.

Under the dynamic pricing mechanism, OMCs review fuel prices on a daily basis. However, changes are only made when market conditions justify adjustments to retail rates.