As crude oil import costs in India inch closer to the $100 per barrel mark, petrol and diesel prices across the nation’s major cities are experiencing renewed pressure. This development is largely attributed to escalating geopolitical tensions and the resulting volatility in global oil markets.
On Monday, petrol prices were noted at ₹102.12 per litre in Delhi, while diesel was at ₹95.20. Meanwhile, Mumbai saw petrol priced at ₹111.21 and diesel at ₹97.83. In Gurgaon, the rates were ₹102.97 for petrol and ₹95.64 for diesel. Over in Bengaluru, petrol cost ₹110.82 per litre, with diesel at ₹98.77. Bhubaneswar recorded petrol prices at ₹108.97 and diesel at ₹100.68, whereas Chandigarh had relatively lower prices at ₹101.54 for petrol and ₹89.47 for diesel.
The variation in fuel prices across different states can be primarily attributed to differences in VAT, local taxes, and transportation expenses. The recent hike in crude oil prices is occurring amidst increased tensions in West Asia, with military conflicts involving the United States and Iran adding to the instability. Additionally, the rise in Brent crude prices has pushed India’s average crude import basket to its highest point in almost three months.
India’s heavy reliance on imports for over 88% of its crude oil needs makes domestic fuel prices highly sensitive to fluctuations in international oil prices. This sensitivity is compounded by a 7.9% increase in domestic petrol consumption, which rose to 3.824 million tonnes in August.
Despite the upward trend in global oil costs, state-owned oil marketing companies, which operate more than 90% of India’s petrol stations, have largely maintained stable retail petrol and diesel prices. However, these companies are now under mounting pressure as international crude prices continue to climb while domestic fuel prices remain relatively unchanged.