US President Donald Trump has escalated his rhetoric against Iran, saying the United States could take control of the Strait of Hormuz and levy tolls on oil shipments if required. This is after Iran said on Saturday that it had closed the Strait of Hormuz in response to Israel's attacks in Lebanon and warned that little was likely to be achieved with the peace deal unless the fighting stopped.
On the back of this development, brent crude prices have risen to $82/barrel once again. Fuel prices had been pushed higher across the board on supply concerns during the US-Iran war.
However, the prices of petrol and diesel have remain unchanged on Monday, June 22. 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. 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 22.
Petrol prices on June 22
- 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 22
- 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 rose on Monday after US President Donald Trump threatened military action against Iran if Hezbollah resumes attacks on Israel, injecting fresh uncertainty into peace negotiations that had raised hopes of easing tensions in the Middle East.
Brent crude climbed as much as 2.2% to above $82 a barrel, while West Texas Intermediate traded above $78.
The gains came despite high-level talks between US and Iranian officials beginning in Switzerland, where both sides are seeking a broader agreement aimed at de-escalating the regional conflict and reopening key trade routes.
The negotiations got off to a shaky start after Iranian media reported that Tehran had halted discussions following Trump's warning.
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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