Fuel prices in major Indian cities are under increased strain as the cost of importing crude oil nears $100 per barrel. This surge is attributed to escalating geopolitical tensions and instability in global oil markets. By Monday, petrol in Delhi was priced at ₹102.12 per litre, with diesel at ₹95.20. Mumbai saw prices of ₹111.21 for petrol and ₹97.83 for diesel. In Gurgaon, petrol was at ₹102.97 and diesel at ₹95.64.
Bengaluru recorded petrol prices at ₹110.82 per litre and diesel at ₹98.77, while Bhubaneswar’s figures were ₹108.97 for petrol and ₹100.68 for diesel. Chandigarh offered somewhat lower prices, with petrol at ₹101.54 and diesel at ₹89.47. The variation in fuel prices across different states is mainly due to differences in VAT, local taxes, and transportation expenses.
The increase in crude oil prices is largely due to intensifying tensions in West Asia and military confrontations involving the United States and Iran, causing Brent crude prices to climb. Consequently, India’s average crude import basket is nearing its highest point in three months. Given that India imports over 88% of its crude oil needs, domestic fuel prices are especially vulnerable to fluctuations in international oil prices. In addition, there was a 7.9% rise in domestic petrol consumption in August, reaching 3.824 million tonnes.
Despite the rising costs on the global stage, state-owned oil marketing companies have maintained stable retail petrol and diesel prices. These companies, which manage over 90% of India’s petrol stations, are increasingly pressured as they juggle climbing international crude prices with maintaining relatively steady domestic fuel prices.