Petrol And Diesel Prices Today: Fuel Rates Stay Unchanged In Delhi, Mumbai, Bengaluru And Other Cities On July 3

Petrol and diesel prices remained unchanged across major Indian cities on Friday, July 3, even as the global crude oil price continued to trade near four-month lows. State-run oil marketing companies (OMCs) kept retail fuel rates unchanged despite easing geopolitical tensions in West Asia and lower international oil prices.

The latest stability in retail fuel prices comes after Nayara Energy reduced petrol prices by ₹5 per litre and diesel prices by ₹3 per litre across its nationwide network earlier this week. However, the revision has not been followed by the public sector OMCs.

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Petrol And Diesel Prices In Major Cities

Why Fuel Rates Have Not Changed

Speaking on the issue, Union Petroleum and Natural Gas Minister Hardeep Singh Puri said the scope for reducing fuel prices remains limited at present. He stated that petrol prices have increased 5.58% over the past four years, while diesel prices have risen 6.23% during the same period.

The minister also said state-run OMCs continue to carry cumulative under-recoveries of nearly ₹2.18 lakh crore. According to him, the companies are still managing inventories purchased when the crude oil price was significantly higher, limiting their ability to lower retail fuel rates immediately.

Fuel prices had witnessed four upward revisions during the recent period of heightened geopolitical tensions. The latest revision last month increased petrol and diesel prices by ₹2.6 per litre and ₹2.7 per litre, respectively. Overall, retail fuel rates have risen by around ₹7.5-₹8 per litre since the conflict began.

Crude Oil Price Remains Under Pressure

The international crude oil price remained subdued on Friday as tanker movement through the Strait of Hormuz continued to improve, reducing concerns over supply disruptions. Investors also tracked ongoing diplomatic discussions between the U.S. and Iran aimed at reaching a longer-term agreement.

Brent crude oil price traded above $71 per barrel, while U.S. West Texas Intermediate crude hovered near $68 per barrel. Both benchmarks are on course to register a fourth consecutive weekly decline if current trends continue.

What Determines Fuel Prices In India?

There are many determinants of retail prices of petrol and diesel fuel, out of which the international price of crude oil still remains the most important one due to the fact that India has to import a considerable amount of its requirement of crude oil. The fluctuations in the rupee exchange rate vis-a-vis U.S. dollars also affect the import prices.

Further, there are other components like the central excise duty, the value added tax (VAT) levied by different states and the freight cost paid by dealers.