Petrol, diesel prices today, July 3: Rates to fall soon? Check latest prices in Delhi, Mumbai, Chennai

Fuel prices in India remained largely unchanged on Friday, July 3rd, despite a drop in Brent crude oil prices due to easing geopolitical tensions. Even though global crude oil prices have reached a four-month low, state-run Oil Marketing Companies (OMCs) are not expected to reduce domestic fuel prices soon.

The Union Minister of Petroleum and Natural Gas, Hardeep Singh Puri, stated that domestic retailers are still dealing with more expensive crude oil acquired during the height of the West Asia crisis.

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The petrol and diesel rates have remained stable since May 25, when state-owned fuel retailers last hiked petrol prices by ₹2.61 per litre and diesel by ₹2.71 per litre.

In Delhi, petrol continues to retail above Rs 100. 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 111.21 and diesel at Rs 97.83.

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In major cities such as Bengaluru, Hyderabad, and Kolkata, petrol prices are still above Rs 110 per litre, while diesel remains below Rs 100, except in Hyderabad, where it's priced at Rs 103.82.

Check latest petrol rates here

Fuel prices in key cities (July 2)

City	Petrol (₹/litre)	Diesel (₹/litre)
Delhi	102.12	95.20
Hyderabad	115.69	103.82
Kolkata	113.51	99.82
Mumbai	111.21	97.83
Bengaluru	111.68	99.56
Chennai	107.77	99.55

Check latest diesel rates here

Meanwhile, Rosneft-backed Nayara Energy reduced petrol prices by Rs 5 per litre and diesel prices by Rs 3 per litre across nearly 7,000 fuel stations on Wednesday.

What drives petrol and diesel prices in India?

A combination of global, economic, and domestic factors shapes fuel prices at the pump. 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.