Petrol, Diesel prices today, May 16: Check prices in Delhi, Mumbai, Kolkata, Chennai, Hyderabad

Fuel prices across India held steady on May 16 after petrol and diesel rates were hiked in India by ₹3 per litre across various cities on Friday, as global crude markets remain volatile due to the ongoing conflict in West Asia and disruption of traffic at the Strait of Hormuz. 

In Delhi, petrol now costs ₹97.77 per litre, while diesel is priced at ₹90.67 per litre. Across other metro cities, the fuel price hike ranged from ₹2.83 per litre to ₹3.29 per litre.

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Prices remain higher in Mumbai, where petrol is selling at ₹106.68 per litre and diesel at about ₹93.14 per litre. Petrol prices in Hyderabad have neared the ₹111 per litre mark. 

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Fuel prices in key cities (May 16)

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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.

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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.