Fuel prices had been pushed higher across the board on supply concerns during the US-Iran war. However, US President Donald Trump confirmed on Wednesday that he had personally signed the memorandum of understanding (MOU) between the United States and Iran, formally setting in motion the end of the war that began on February 28.
With the war coming to an end, brent crude prices have also declined sharply, erasing most of the war premium. However, the prices of petrol and diesel have remain unchanged on Thursday, June 18.
Ever since the US-Iran War began, 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.
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 18.
Petrol prices on June 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 June 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
Global Crude Prices
Oil prices declined on Thursday as an agreement was signed between the US and Iran, raising hopes that crude flows through the Strait of Hormuz could gradually return to normal and ease concerns over global supply disruptions.
Brent crude slipped below $78 a barrel, while West Texas Intermediate traded near $76, extending a sharp pullback that has erased most of the gains triggered by the conflict earlier this year.
Despite the fall in prices, underlying supply conditions remain relatively tight. Inventory levels at Cushing, Oklahoma — the delivery point for US crude futures and the country's largest commercial storage hub — have dropped to around 20 million barrels, a level many traders view as close to the operational minimum.
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.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.