Petrol, Diesel Rates Hold Steady After Recent Hikes; Brent Crude Remains Above $110

Petrol and diesel prices across major Indian cities saw only marginal changes on May 20 following two successive increases over the past four days. State-run oil marketing companies had earlier raised retail fuel prices by ₹3 per litre and later by around 90 paise amid a sharp rise in international crude oil prices.

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In Delhi, petrol continued to retail at ₹98.64 per litre, while diesel was priced at ₹91.58 per litre. Mumbai recorded petrol prices at ₹107.59 per litre and diesel at ₹94.08 per litre, according to the latest rates issued by fuel retailers.

The recent revisions came after Brent crude prices surged more than 50% since late February following military strikes involving the U.S., Israel and Iran. Public sector oil marketing companies have been facing pressure due to rising input costs and a widening gap between global crude prices and domestic retail fuel rates.

Fuel Prices Across Major Cities

Crude Oil Remains Elevated

Global oil prices remained firm on May 20 as markets monitored developments surrounding the U.S.-Iran standoff. Brent crude traded below $111 per barrel after declining 0.7% in the previous session, while West Texas Intermediate hovered near $104 per barrel.

The geopolitical risk premium in oil markets has remained elevated after U.S. President Donald Trump warned of possible renewed military action if Iran failed to agree to proposed peace terms. The remarks came shortly after Trump said a planned strike had been called off.

Higher crude oil prices have raised concerns over fuel marketing margins in India. Last week, Petroleum Minister Hardeep Singh Puri said public sector oil marketing companies may find it difficult to continue absorbing daily losses of around ₹1,000 crore from fuel sales below market-linked prices.

Key Factors Behind Fuel Pricing

Retail petrol and diesel prices in India are influenced primarily by international crude oil rates since the country imports a major portion of its crude oil requirement. Currency movement also plays a significant role because crude purchases are denominated in U.S. dollars.

Apart from international crude oil prices and exchange rates, central excise duty, dealer commission charges, and value-added tax (VAT) are some other determinants that affect the retail cost of fuel.This leads to the difference in the cost of fuel between various states and cities. The increase in the prices is the first major increase after years of stability in the local markets.