Fuel and brent crude prices had been pushed higher across the board on supply concerns during the US-Iran war. However, on Thursday, brent crude fell to its pre-war level of $72.48 per barrel as a result of geopolitical tensions easing.
Negotiations between Washington and Tehran remain complex, both sides have signalled progress following their initial round of talks, raising hopes that the conflict could move towards a lasting resolution.
However, the prices of petrol and diesel have remain unchanged on Thursday, June 25.
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 25.
Petrol prices on June 25
- 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 25
- 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 Drops To Pre-War Level: Brent Crude Slips To $72, Erasing All Gains From US-Iran War
Global Crude Prices
Oil prices extended their decline on Thursday, with Brent crude falling to its pre-war levels as improving supply conditions and optimism over a potential US-Iran peace agreement continued to weigh on the market.
Brent crude dropped more than 1.52% to around $72.4 a barrel, while US benchmark West Texas Intermediate (WTI) fell 1.43% to about $69.3 a barrel. The latest decline follows a sharp 4% drop in the previous session, leaving Brent at its closing price before the US-Iran conflict began.
The retreat comes as traders increasingly unwind the geopolitical risk premium that had driven oil prices sharply higher earlier this year. While negotiations between Washington and Tehran remain complex, both sides have signalled progress following their initial round of talks, raising hopes that the conflict could move towards a lasting resolution.
One visible sign of easing tensions has been the increase in oil tankers openly transiting the Strait of Hormuz with their tracking systems switched on, suggesting shipping activity is gradually returning to normal after months of disruption.
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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