Since last month, the retail prices of gasoline and diesel have increased four times; the most recent increase, of Rs 2.6 and Rs 2.7 per liter, respectively, was announced last week. With the exception of a few paise, the cost of gasoline and diesel has not changed much as of June 8.
Since the beginning of the US-Iran war, prices have risen by Rs 7.5–8. The ongoing crisis in the Middle East has caused global oil prices to jump, which has had a huge impact on oil marketing companies.
Diesel costs Rs 95.20 per litre, while petrol costs Rs 102.12 per litre in Delhi. During the crisis, state-owned oil companies have lost about Rs 1 lakh crore in ten weeks, or Rs 1,600–1,700 crore every day. Petrol prices in numerous cities are expected to reach Rs 114 per litre, indicating the growing disparity in fuel prices between states. Indian consumers are once again experiencing a steep increase in gasoline expenses.
Petrol prices on June 6
- Petrol price in Delhi: Rs 102.12/litre
- Petrol price in Kolkata: Rs 113.51/litre
- Petrol price in Mumbai: Rs 112.21/litre
- Petrol price in Chennai: Rs 108.01/litre
- Petrol price in Hyderabad: Rs 115.73/litre
- Petrol price in Bengaluru: Rs 110.89/litre
Diesel prices on June 6
- Diesel price in Delhi : Rs 95.20/litre
- Diesel price in Kolkata : Rs 99.82/litre
- Diesel price in Mumbai : Rs 97.83litre
- Diesel price in Chennai: Rs 99.66/litre
- Diesel price in Hyderabad : 103.82/litre
- Diesel price in Bengaluru: 98.80/litre
Worldwide Oil Prices
Following Iran’s multiple missile launches against Israel on Tuesday, oil prices spiked due to concerns that the Middle East’s precarious ceasefire would break down and severely damage the region’s energy supplies.
While US benchmark West Texas Intermediate briefly neared $94 before reversing some gains, Brent crude surged as much as 3.6% to $96.47 per barrel. The rally increased market volatility in the energy sector, which has been primarily influenced by geopolitical events rather than basic supply-demand principles.
The most recent escalation occurs during a delicate phase of the conflict-ending negotiations. The missile attacks were meant to serve as a signal to Israel to stop its military operations in Lebanon, according to an Iranian military advisor. Israel reported no deaths and said all approaching missiles were intercepted.
What Affects the Cost of Gasoline and Diesel?
Since crude is the main raw material needed to make gasoline and diesel, the price of fuel in India is influenced by a number of factors, the most important of which being the price of crude oil globally. Since India imports a significant amount of its crude oil needs, the rupee-dollar exchange rate also affects fuel prices. The ultimate retail price of gasoline and diesel is also greatly impacted by state-level VAT and central excise duty, which explains why rates vary by city.
Do oil companies change the price of gasoline and diesel on a daily basis?
Under the nation’s dynamic fuel pricing system, state-run oil marketing companies (OMCs) like Indian Oil, Bharat Petroleum, and Hindustan Petroleum have the power to change the price of gasoline and diesel on a daily basis. In reality, though, retail fuel costs don’t always fluctuate daily. Both local and international factors affecting the commodity determine the fluctuations.
Despite changes in the price of products, exchange rates, or the price of crude oil globally, prices are frequently maintained for long stretches of time. OMCs may make price adjustments when market conditions and policy considerations allow, although daily revision does not always imply daily pricing changes. To be clear, while fuel costs are evaluated every day, they are not always updated on a daily basis.
