With global oil prices resuming their rally, and Brent trading near $105, everyone is bracing for a change in petrol and diesel prices. Do you know the cost that state-owned oil firms are incurring for insulating Indian consumers from the global energy shock? It's Rs 1,600-1,700 crore per day, over Rs 1 lakh crore in 10 weeks. Ever-widening losses are now raising questions on how long they can continue bearing the cost without financially capitulating.
However, petrol and diesel prices remain largely unchanged, with the exception of a slight change in Lucknow, Patna, and Hyderabad. (check table below)
In the national capital, petrol is still selling at Rs 94.77 per litre, while diesel is priced at Rs 87.67 per litre. Rates are comparatively steeper in Mumbai, where petrol is being sold at Rs 103.50 per litre and diesel at about Rs 90.01 per litre.
While the three OMCs have worked overtime to keep the supply lines running even when demand spiked due to panic buying, the government intervention included excise duty reductions to absorb part of the fuel cost burden. The special additional excise duty on petrol was cut to Rs 3 per litre from Rs 13, while excise duty on diesel was reduced to zero from Rs 10 per litre.
The government has taken a hit of Rs 14,000 crore a month in cutting the excise duty, sources said.
ALSO READ: Crude Oil Prices Likely To Stay Higher For Longer: ADB Chief Economist
| City | Petrol (Rs/Litre) | Diesel (Rs/Litre) |
|---|---|---|
| Delhi | 94.77 | 87.67 |
| Mumbai | 103.50 | 90.03 |
| Kolkata | 105.45 | 92.02 |
| Chennai | 100.84 | 92.39 |
| Ahmedabad | 94.49 | 90.16 |
| Hyderabad | 107.50 | 95.70 |
| Patna | 105.71 | 91.49 |
| Bengaluru | 102.96 | 90.99 |
| Lucknow | 95.34 | 88.50 |
What Drives Petrol and Diesel Prices?
Fuel prices in India depend on several factors, with global crude oil prices being the most significant as crude is the primary raw material used to produce petrol and diesel.
The rupee–dollar exchange rate also influences fuel prices since India imports a large portion of its crude oil requirements. Additionally, central excise duty and state-level VAT significantly affect the final retail price of petrol and diesel, which is why rates differ across cities.
Get all the latest updates on the US, Israel-Iran war here.
Global Oil Prices
Brent crude rose as much as 3.5% to $104.80 a barrel, while West Texas Intermediate climbed toward $99. The move extended the geopolitical risk premium that has gripped energy markets since the conflict began in late February.
Despite mounting pressure to raise fuel prices amid the Iran war disruption, the central government has decided to keep the domestic LPG rates unchanged. It costs Rs 913 per 14.2-kg cylinder in Delhi.
However, the price of commercial LPG (19 kg) has been increased by Rs 993 (on average). Commercial LPG cylinder prices in Delhi are now at Rs 3,071.50 (from Rs 2,078.50 earlier). Similarly, commercial LPG cylinder prices in Mumbai have been raised from Rs 2,031 to Rs 3,024.
Significantly, the price of a 19-kg commercial LPG cylinder has been increased thrice since February 28 when the Iran war began. It was first increased by Rs 144 in March, followed by another hike of nearly Rs 200 on April 1.
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