Fuel prices had been pushed higher across the board on supply concerns during the US-Iran war. However, on Tuesday, Oman and Iran agreed to press on with discussions about the future administration of navigation in the Strait of Hormuz.
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 Wednesday, June 24.
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 24.
Petrol prices on June 24
- 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 24
- 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 traded lower on Wednesday after settling 1% lower in the previous session as investors kept a close watch on crude flows through the Strait of Hormuz following signs of progress in US-Iran peace talks.
Brent futures last traded 0.17% lower at $76.47 per barrel. The benchmark closed down 82 cents, or 1.1%, at $77.08 on Tuesday, while US West Texas Intermediate futures finished 65 cents, or 0.9%, lower at $73.21 per barrel. Both benchmarks hit near-four-month lows yesterday.
Oil prices have been trending down after falling 3% on Monday after the United States granted Iran a 60-day sanctions waiver following initial peace talks, and as officials reported a lull in hostilities in Lebanon under a broader agreement.
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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