CHENNAI: The price of petrol and diesel in the city on Saturday (May 16) remain the same as of yesterday.
The Centre on Friday (May 15) increased petrol and diesel prices by around Rs 3 per litre, marking the first major fuel price hike in four years. The move is primarily driven by a sustained surge in global crude oil prices and tightening energy supplies following the prolonged conflict in West Asia.
Accordingly, one litre of petrol costs Rs 103.67 and a litre of diesel costs Rs 95.25 in the city on Saturday.
Oil companies use the current crude oil price on the global market and the value of the Indian rupee as compared to the US dollar as primary variables to determine the pricing of petrol and diesel on a day to day basis.
Any volatility in global oil markets or currency fluctuations can directly impact domestic fuel rates. In addition, refining costs, freight charges, and dealer commissions also play a role in determining the final retail price.
Variations in fuel prices are commonly seen across different cities and states due to differences in local taxes, including Value Added Tax (VAT) imposed by respective state governments.
Consumers are advised to keep track of daily revisions, as geopolitical developments, supply constraints, and changes in global demand can influence crude oil prices and lead to future adjustments in domestic fuel rates.