Fuel prices across India held stable on May 28 following a price hike on Monday. This as the ongoing US-Iran conflict and the closure of the Strait of Hormuz have kept global energy markets volatile and crude prices elevated. The Monday hike marked the fourth hike in two weeks.

Petrol prices have now gone up by Rs 2.61 per litre and diesel by Rs 2.71 in the latest in a series of revisions as oil marketing companies work to recover losses that had been building for months, even as global crude crossed $100 per barrel.

Petrol prices in New Delhi have now crossed the Rs 100 mark. It now costs Rs 102.12 per litre and diesel Rs 95.20 per litre following the latest increase.

In Mumbai, too, petrol prices crossed the Rs 110 mark with new prices being Rs 111.18 and diesel at Rs 97.83.

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Fuel prices in key cities (May 28)

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What drives petrol and diesel prices in India?

Fuel prices at the pump are shaped by a combination of global, economic, and domestic factors. At the heart of it is the international price of crude oil, the base raw material for both petrol and diesel, which has the single biggest bearing on what consumers ultimately pay.

The rupee-dollar exchange rate is another key variable, given that India relies heavily on imported crude. When the rupee weakens against the dollar, the cost of procuring crude rises, which can feed directly into higher retail fuel prices.

Why do prices differ across different cities?

On top of that, taxes levied by both the central and state governments make up a substantial portion of the final price, which is why petrol and diesel rates differ across states. Transportation costs and prevailing demand-supply conditions also factor into the retail price consumers see at the pump

Published on: May 28, 2026 8:44 AM IST