Chennai: Petrol, diesel prices hiked for 3rd time in one month; check latest rates here

CHENNAI: The price of petrol and diesel in the city increased on Saturday (May 23), marking the third increase in fuel rates in less than a week after state-run oil firms ended a nearly four-year freeze on revisions.

Accordingly, one litre of petrol costs Rs 105.31 and a litre of diesel costs 96.98 in Chennai on Saturday.

Yesterday, on May 22, a litre of petrol had cost Rs 104.49 and a litre of diesel had cost Rs 96.11.

The rate of petrol has thus risen by 82 paise per litre while the rate of diesel has risen by Rs 87 per litre.

By much have fuel prices been hiked this May?

With the latest hike, petrol and diesel prices have risen close to Rs 5 a litre since the state-owned oil marketing companies on May 15 ended the hiatus in rate revision, stoking concerns over inflationary pressures and higher transportation costs across the economy.

Petrol and diesel prices were increased by Rs 3 per litre each on May 15 and 90 paise a litre on May 19.

The back-to-back increases come after global crude oil prices surged more than 50 per cent since late February, following US-Israeli strikes on Iran and disruptions to shipments through the Strait of Hormuz, a critical global oil transit route.

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.