India’s fuel prices in major cities are experiencing upward pressure as global crude oil import costs near the $100 per barrel mark. This increase is attributed to escalating geopolitical tensions and fluctuating conditions in the international oil markets. On Monday, petrol prices reached ₹102.12 per litre in Delhi, with diesel priced at ₹95.20. In Mumbai, the rates were higher, with petrol at ₹111.21 and diesel at ₹97.83. Meanwhile, Gurgaon saw petrol at ₹102.97 and diesel at ₹95.64.
Bengaluru residents faced petrol costs of ₹110.82 per litre, while diesel was at ₹98.77. In Bhubaneswar, petrol was priced at ₹108.97 and diesel at ₹100.68. Chandigarh offered some relief with relatively lower petrol prices at ₹101.54 and diesel at ₹89.47. The variance in fuel prices across states primarily results from differences in VAT, local taxes, and transportation expenses.
The spike in crude oil prices comes amidst increased tensions in West Asia, marked by military confrontations involving the United States and Iran. These developments have also contributed to the rise in Brent crude prices, bringing India’s average crude import basket close to a three-month high. Given that India imports over 88% of its crude oil, domestic fuel prices are particularly susceptible to changes in international oil markets.
Despite these global cost increases, state-owned oil marketing companies in India have largely maintained stable retail petrol and diesel prices. These companies, which operate over 90% of the country’s petrol stations, are finding it challenging to absorb the rising international crude prices while keeping domestic rates unchanged. Compounding the issue, domestic petrol consumption surged by 7.9% in August, reaching 3.824 million tonnes.