Fuel prices across India largely held stable on June 12 following a price hike on May 25. This, along with the ongoing US-Iran conflict and the closure of the Strait of Hormuz, has kept global energy markets volatile and crude prices elevated. The May 25 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 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.

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Petrol prices in New Delhi had crossed the Rs 100 mark in the last hike. 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 (June 12)

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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: Jun 12, 2026 8:03 AM IST