Petrol and diesel prices across major Indian cities remained unchanged on April 6, even as global crude oil benchmarks edged higher. This is after US President Donald Trump vowed to obliterated the power plants and bridges of Iran on Tuesday, if the country does not reopen the Strait of Hormuz. Hours after he issued a 48-hour ultimatum to Tehran, Trump doubled down on his warning on social media."Open the Fuckin' Strait, you crazy bastards, or you'll be living in Hell - JUST WATCH! (sic)," Trump added, as he ended his post by saying "Praise be to Allah".
State-run oil marketing companies, including Indian Oil Corporation Ltd and Bharat Petroleum Corporation Ltd, have hiked the price of industrial diesel by Rs 28.22 per litre, a 25% increase, to Rs 137.81 per litre. This applies to high-speed diesel sold in bulk to commercial and industrial establishments.
In the national capital, petrol is still selling at Rs 94.77 per litre, while diesel is priced at Rs 87.67 per litre. Rates are comparatively steeper in Mumbai, where petrol is being sold at Rs 103.50 per litre and diesel at about Rs 90.01 per litre. With state elections approaching, the government may prefer to keep auto fuels under control.
In a first since fuel price deregulation, Indian state-run oil marketing companies will pay refineries a discounted price for petrol, diesel, aviation turbine fuel (ATF) and kerosene to limit mounting losses from a self-imposed freeze on retail fuel prices, sources said. With no immediate end to the conflict in sight, OMCs have decided to fix a discount on the refinery transfer price (RTP) - the internal price at which refineries sell fuel to marketing arms - to effectively pay refineries less than the import-parity cost of the fuels like petrol and diesel.
ALSO READ: India OMCs To Pay Discounted Rates To Refiners Amid Fuel Price Freeze
| City | Petrol (Rs/Litre) | Diesel (Rs/Litre) |
|---|---|---|
| Delhi | 94.77 | 87.67 |
| Mumbai | 103.54 | 90.03 |
| Kolkata | 105.45 | 92.02 |
| Chennai | 100.84 | 92.39 |
| Ahmedabad | 94.49 | 90.16 |
| Hyderabad | 107.46 | 95.70 |
| Patna | 105.71 | 91.49 |
| Bengaluru | 102.96 | 90.99 |
| Lucknow | 95.34 | 88.50 |
ALSO READ: Brent Crude Tops $110 As Trump Sets New Hormuz Deadline, Oil Rally Extends
Global Oil Prices
Global oil prices climbed sharply after Donald Trump escalated rhetoric against Iran, issuing a new deadline tied to the reopening of the strategically critical Strait of Hormuz. Brent crude rose above $110 per barrel, while US benchmark WTI hovered near $113, as markets reacted to the heightened risk of supply disruptions.
Trump warned of potential strikes targeting Iranian infrastructure if access through the strait is not restored. Tehran, however, rejected the ultimatum, and restrictions on maritime traffic remain largely in place, allowing only limited vessel movement.
Prices of commercial LPG were hiked by Rs 195.50 on Wednesday, April 1, on the back of surge in global crude oil prices linked to the escalating Middle East conflict. A 19-kg commercial LPG now costs Rs 2,078.50 in Delhi, according to state-owned oil companies. Commercial liquefied petroleum gas rates were last increased by Rs 114.5 per 19-kg cylinder on March 1.
Domestic cooking gas LPG rates, which were last hiked by Rs 60 per 14.2-kg cylinder on March 7, remain unchanged, according to news agency PTI. It costs Rs 913 per 14.2-kg cylinder in Delhi. State-owned oil marketing companies Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum revise ATF and LPG prices on the first day of every month based on international benchmarks and the exchange rate.
The government has also eased norms to allow sale of subsidized kerosene through select petrol pumps for a limited period, as global geopolitical tensions disrupt energy supply chains.
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 VAT significantly affect the final retail price of petrol and diesel, which is why rates differ across cities.
Get all the latest updates on the US, Israel-Iran war here.
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