US and Iran came to a peace agreement two days ago after months of war, that pushed commodity pries higher across the board on supply concerns. Ever since the US-Iran War had begun, fuel prices have been hiked for four times, with the latest increase of Rs 2.6 and Rs 2.7 per litre respectively announced last month. So far, prices have increased by Rs 7.5-8 since the start of the war.
With the war coming to a potential end, brent crude prices have also declined sharply. However, the prices of petrol and diesel have remain unchanged on Wednesday, June 17.
Oil manufacturing companies' (OMCs) under-recoveries have also seen a notable reduction, as per the latest data shared by the Ministry of Petroleum and Natural Gas on Monday. For petrol, the under-recoveries are down 83% to Rs 3 per litre from Rs 24 per litre on petrol, as on April 1. While diesel's under-recoveries saw a 75% reduction to Rs 27 per litre from Rs 105 per litre.
In Delhi, petrol is priced at Rs 102.12 per litre, while diesel costs Rs 95.20 per litre on June 17.
Petrol prices on June 17
- 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 June 17
- 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
ALSO READ: Oil Prices At Three-Month Low: Brent Crude Falls To $79 As US-Iran Deal Nears Finish Line
Global Crude Prices
Oil prices hovered near three-month lows on Wednesday as traders assessed the prospect of additional Iranian crude returning to global markets under a proposed US-Iran agreement aimed at reopening the Strait of Hormuz.
Brent crude remained near $79 a barrel, extending a sharp retreat that has erased much of the geopolitical premium built into prices during the recent conflict. West Texas Intermediate traded below $77 a barrel after tumbling 16% over the previous four sessions, its longest losing streak of the year.
The decline comes as markets increasingly price in a revival of Iranian oil exports. An interim agreement expected to be signed on Friday would allow Tehran to resume crude sales immediately, while also laying the groundwork for broader negotiations to formally end hostilities and impose new restrictions on Iran's nuclear programme.
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 value added tax or VAT significantly affect the final retail price of petrol and diesel. This is why fuel rates differ across all cities.
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