Fuel Prices on May 5: Check out petrol, diesel rates in Mumbai, Delhi and other cities

India is 80% dependent on imports for meeting its oil needs and retail rates adjust according to the global movement in crude prices. (Representative Image)

Prices of petrol and diesel have remained steady for almost a month now. Since the end of a four-and-a-half-month hiatus in rate revision on March 22, rates of petrol and diesel have increased by Rs 10 per litre each via 14 revisions. Fuel prices were last hiked on April 6 by 80 paise a litre each.

According to a price notification from fuel retailers, petrol in Delhi costs Rs 105.41 per litre and diesel Rs 96.67 per litre.

In Mumbai, petrol and diesel prices per litre are at Rs 120.51 and Rs 104.77 respectively. In Chennai, petrol costs Rs 110.85 per litre and diesel Rs 100.94 per litre. In Kolkata, petrol is at Rs 115.12 per litre and diesel Rs 99.83 per litre.

On April 27, Prime Minister Narendra Modi speaking on high fuel prices, urged chief ministers to cut value added tax (VAT) on petrol and diesel to pass on the benefits and ease the burden on citizens. He also said though some states had reduced taxes, others were yet to provide relief.

A report on April 12 stated that the current domestic retail fuel prices are benchmarked to international oil prices at $95 per barrel. With Brent crude oil prices close to $100 per barrel in the week, domestic fuel prices could freeze again for some time.

Reacting on high oil prices and demand disruption due to it, Chief Economic Advisor V Anantha Nageswaran earlier said if global crude oil prices remain above the $110 per barrel-mark for more than a quarter, then the government, oil marketing companies and consumers will have to "share the burden".

Also Read: Fuel sales growth moderates in April on high crude oil prices

India is 80% dependent on imports for meeting its oil needs and so retail rates adjust accordingly to the global movement in crude prices. On a daily basis, oil marketing companies (OMCs) adjust the rates of petrol and diesel depending on the average price of benchmark fuel in the worldwide market over the previous 15 days and foreign exchange rates. Every day at 6 am, any changes in petrol and diesel prices take effect. Here is how petrol and diesel prices are calculated in India. Also, know how much of it is tax.

Also Read: India in a better position to deal with crude oil price rise: Michael Dommermuth, head Asia, Manulife

 137-day freeze on fuel prices ended on March 22

From November 3, 2021 until March 22, 2022, there had been a freeze on fuel prices after the central government's excise duty cut of Rs 5 a litre on petrol and Rs 10 a litre on diesel, and many states also lowering state tax.

Also Read: Refinery margins, inventory gains to offset losses on petrol, diesel: Fitch

During this period, there was also a spike in international crude oil prices. This triggered speculation that the freeze was due to assembly elections in Uttar Pradesh, Punjab, Uttarakhand, Goa and Manipur. It was widely anticipated that fuel prices at the pump would increase after the poll results were out on March 10.

The OMCs started to increase retail prices of petrol and diesel from March 22. In March, petrol and diesel prices were hiked Rs 6.40 per litre each. And, in April so far, they were raised by Rs 3.60 per litre each. So, there is a net increase of Rs 10 per litre each.

Also Read: RBI monetary policy risks failure if crude oil averages $110 a barrel in FY23

On May 4, Brent crude futures settled up $5.17, or 4.9%, to $110.14 a barrel. And, West Texas Intermediate crude futures settled at $107.81 a barrel, up $5.40, or 5.3%.