CHENNAI: The price of petrol and diesel in the city increased on Saturday (May 23), marking the third hike in fuel rates this week.
Petrol and diesel prices were hiked on Saturday, 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 Rs 96.98 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.