Fuel prices had been pushed higher across the board on supply concerns during the US-Iran war. However, Washington has now issued a 60-day waiver allowing certain sales of Iranian oil and petroleum products, citing what it described as "productive talks" between the two sides in Switzerland.
With the war coming to a potential end soon, brent crude prices have also declined, erasing most of the war premium. However, the prices of petrol and diesel have remain unchanged on Tuesday, June 23.
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 23.
Petrol prices on June 23
- 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 23
- 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: Brent Crude Trades Around $78 After Iran Gets Oil Sales Waiver As Peace Talks Advance
Global Crude Prices
Oil prices steadied on Tuesday after posting their sharpest decline in nearly a week, as signs of progress in US-Iran peace negotiations raised hopes of additional crude supply returning to global markets.
Brent crude traded near $78 a barrel after falling more than 3% in the previous session, while West Texas Intermediate hovered above $74.
The move came after Washington issued a 60-day waiver allowing certain sales of Iranian oil and petroleum products, citing what it described as "productive talks" between the two sides in Switzerland.
The waiver provides Tehran with a much-needed economic lifeline and could pave the way for more Iranian crude to reach global buyers. The measure allows a broad range of purchasers, including US refiners, to buy and pay for Iranian oil, although some market participants may remain cautious about potential geopolitical risks.
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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