Petrol and diesel prices in major Indian cities remained unchanged on October 5, despite international crude oil prices staying above the $100-per-barrel mark amid continuing tensions in West Asia.
State-owned oil marketing companies have kept retail fuel rates steady even as higher global crude prices increase supply costs. However, Nayara Energy has raised petrol prices by ₹5 per litre and diesel rates by ₹3 per litre at its outlets.
According to rating agency ICRA, oil marketing companies are currently facing losses of around ₹530 crore per day because of the difference between international fuel costs and domestic retail prices.
Petrol and Diesel Rates in Major Cities
Fuel prices continue to vary significantly across Indian cities because of differences in local taxes and other charges. As of October 5, the rates in major metropolitan cities are as follows:
| City | Petrol Price (₹/L) | Diesel Price (₹/L) |
|---|---|---|
| Mumbai | ₹111.21 | ₹97.83 |
| Delhi | ₹102.12 | ₹95.20 |
| Kolkata | ₹113.51 | ₹99.82 |
| Chennai | ₹107.76 | ₹99.55 |
| Bengaluru | ₹111.68 | ₹99.56 |
| Hyderabad | ₹116.15 | ₹104.23 |
In Mumbai, petrol is selling at ₹111.21 per litre and diesel at ₹97.83 per litre. In Delhi, petrol remains at ₹102.12 per litre, while diesel is available at ₹95.20 per litre.
Crude Oil Prices Put Pressure on Fuel Retailers
The rise in international crude prices is putting additional pressure on India’s oil marketing companies. With domestic petrol and diesel rates remaining largely unchanged, fuel retailers are absorbing a significant part of the increase in their input costs.
Brent crude has moved above $101 per barrel, with geopolitical tensions in West Asia continuing to influence international oil markets. If elevated crude prices persist, India’s oil import bill could rise further and increase pressure on domestic fuel prices in the coming weeks.
For consumers, however, there has been no major change at the pump over the past week despite the increase in global crude prices.
Why Petrol and Diesel Prices Differ Across Cities
The price paid for petrol or diesel depends on several factors beyond the basic refinery price. State-level taxes, central government taxes, transportation expenses and dealer commissions all contribute to the final retail rate.
Local taxes are a major reason why fuel prices can differ considerably between states and cities. Transportation costs and local demand-supply conditions can also influence the price charged at individual fuel stations.
The rupee-dollar exchange rate is another important factor because India depends heavily on imported crude oil. A weaker rupee against the US dollar can increase the cost of importing crude, potentially adding pressure to domestic fuel prices.
For daily commuters, the current stability means there has been no immediate major increase in fuel expenses. However, consumers should continue checking local petrol and diesel rates because taxes and other charges can result in different prices even within the same state.
Disclaimer
Fuel prices mentioned in this article are based on the rates available on October 5. Retail prices may vary depending on the city, fuel station, applicable taxes and the oil marketing company. International crude prices and currency movements can also affect future fuel rates. Consumers should verify the latest price at their local fuel station before refuelling.