With geopolitical tension around West Asia escalating every day, crude prices in the international market have been rising. Oil prices climbed over 4% in more than a month, to their highest on Friday.
However, state-run oil marketing companies have kept petrol and diesel prices unchanged on July 18, even as global crude oil prices surged amid escalating geopolitical tensions in the Middle East.
Brent crude settled at $88.10 per barrel, while West Texas Intermediate (WTI) crude closed at $82.49 per barrel, with both benchmarks gaining nearly 16% for the week. The rally was driven by renewed military tensions between the US and Iran, raising concerns over potential supply disruptions through the Strait of Hormuz and risks to Red Sea shipping routes.
Also Read: Oil Heads For Biggest Weekly Gain Since April; Brent Crude At $85 As US-Iran War Escalates Again.
Petrol prices on July 18
- Petrol price in Delhi: Rs 102.12/litre
- Petrol price in Kolkata: Rs 113.51/litre
- Petrol price in Mumbai: Rs 111.21/litre
- Petrol price in Chennai: Rs 108.01/litre
- Petrol price in Hyderabad: Rs 115.73/litre
- Petrol price in Bengaluru: Rs 110.89/litre
Diesel prices on July 18
- Diesel price in Delhi: Rs 95.20/litre
- Diesel price in Kolkata: Rs 99.82/litre
- Diesel price in Mumbai: Rs 97.83litre
- Diesel price in Chennai: Rs 99.66/litre
- Diesel price in Hyderabad: 103.82/litre
- Diesel price in Bengaluru: 98.80/litre
Meanwhile, the government has revised windfall taxes on fuel exports in line with the recent rebound in crude prices. Effective July 16, the export duty on diesel was raised to Rs 15.5 per litre from Rs 8.5 per litre, while the levy on aviation turbine fuel (ATF) exports increased to Rs 14.5 per litre from Rs 7.5 per litre. The duty on petrol exports, however, was reduced to Rs 2.5 per litre from Rs 4 per litre. Despite higher global oil prices and revised export levies, retail fuel prices in India have remained unchanged since the late-May hike, with Oil Minister Hardeep Singh Puri indicating that an immediate reduction in pump prices is unlikely.
What Drives Petrol and Diesel Prices?
While international crude prices remain a key factor, domestic petrol and diesel rates are also impacted by changes in currency value or exchange rate, refinery processing costs, freight and other charges, dealer commissions, and taxes levied by the central and state government. Consequently, movements in global oil prices do not always result in immediate changes at the pump.
Also Read: Gold Below $4,000: Metal Heads For Big Weekly Loss Amid Crude Jitters, Fed Pivot Fears
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