Petrol, Diesel Fresh Prices On May 17: Check Latest Rates In Delhi, Mumbai, Bengaluru, Kolkata After ₹3/Litre Hike

(MENAFN- Live Mint) Price of petrol and diesel remained steady on Sunday, 17 May, after latest revision by the BJP-led Centre when fuel rates were hiked by ₹3 per litre. On Friday, state run oil marketing companies (OMCs) hiked petrol and diesel prices. marking a significant change in fuel rates in 4-year period. The recent price change comes on the heels of West Asia war as the world grapples to meet fuel demand amid supply disruption across the Strait of Hormuz. This critical waterway, located in the Gulf Strait, controls one-fifth of global energy flows.

Till 14 May, the government cushioned domestic consumers from volatility of oil prices as brent crude oil rates climbed to over $100 per barrel in the last few months due to the West conflict. Petrol price in the national capital now costs ₹97.77 per litre against ₹94.77 per litre previously, while diesel rates has been increased to ₹90.67 per litre from ₹87.67. Even though fuel rates vary across states due to differences in value-added tax, petrol and diesel prices are now at their highest since May 2022 levels. Latest city-wise petrol and diesel prices are given below:

Also Read | Petrol, diesel prices could jump further, Economists share outlook City-wise petrol prices today

City-wise diesel prices today

In addition to revision of petrol and diesel rates, the Centre also increased CNG prices in cities like Delhi and Mumbai by ₹2 per kg. Moreover, an export duty of ₹3 per litre on petrol will be imposed, as per Union Finance Ministry latest directive.

Also Read | Petrol, CNG, LPG rates jump in May - check latest prices in your city Brent crude oil sees 3.35% jump

On Friday, Oil prices soared more than 3%, as Brent crude futures settled at $109.26 a barrel. A remarkable 3.35% increase of $3.54 per barrel was seen on 15 May after comments by US President Donald Trump and Iran's foreign minister further dented hopes of a deal. In the last week, Brent jumped 7.84% and WTI 10.48% on uncertainty over the shaky ceasefire in the Iran war with US and Israel.

"An increasing number of vessels are filtering through the strait... although currently this has a more tangible impact on sentiment than on the actual oil balance," Reuters quoted PVM analyst Tamas Varga as saying.

Also Read | Govt imposes export duty on petrol, cuts levy on diesel, jet fuel exports Also Read | Fuel Price Hike Highlights: Kharge blames Modi govt for crisis, incompetence How will prolonged closure of the Strait of Hormuz impact markets

Crude oil prices have risen more than 40% since the West Asia war began on February 28 and the prolonged closure of the Strait of Hormuz has raised fears that inflation will surge globally, prompting monetary tightening from major central banks.

Senior analyst with Price Futures Group, Phil Flynn said, "The world has consumed its oil safety net at a historic rate," adding "While strategic releases and demand reduction have prevented immediate chaos, the margin for error is shrinking rapidly. A prolonged closure of the Strait of Hormuz points toward tighter physical markets, potential refined product shortages, and upward pressure on prices in the coming weeks and months."

The Indian government also raised gold custom duty to 15% from 6% and urged citizens to buy less gold to preserve foreign reserves and rupee's value. International gold prices declined to an over one-week low on Friday, pressured by higher energy prices that aggravated concerns of an inflation spike and longer-term higher interest rates.

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