Petrol and diesel prices across major Indian cities remained unchanged on April 21, even as global oil prices pulled back after a sharp rally, as uncertainty over Iran's participation in potential talks with the US tempered bullish momentum driven by supply fears. The government is considering the introduction of a fuel price stabilisation mechanism to shield consumers from sharp spikes in petrol, diesel and LPG prices amid heightened global energy volatility, according to government sources.
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.
Macquarie Group, in a report on 'India Fuel Retail', said, "At spot petrol-diesel pricing of $135-165 per barrel, we estimate India's oil marketing companies lose Rs 18 and Rs 35 per litre on petrol and diesel sales (respectively)." Every $10 per barrel increase in crude adds roughly Rs 6 per litre to marketing losses, the report said.
ALSO READ: Fuel Price Freeze: Rs 18/Litre Loss On Petrol, Rs 35 On Diesel
| 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 Slips To $95 As Iran Moves Toward Dialogue With US To Ease Conflict
Global Oil Prices
Crude benchmarks surged after tensions flared in the Gulf over the weekend. Brent crude for June settlement rose 6.1% to $95.89 a barrel, while WTI for May delivery jumped 7.5% to $90.12 a barrel, as traders priced in the risk of supply disruptions. The rally followed the US Navy's seizure of an Iranian-linked vessel in the Gulf of Oman after it allegedly ignored warnings. The incident came alongside reports of Iranian fire toward ships and renewed restrictions in the Strait of Hormuz.
Oil prices had plunged nearly 9% late last week after Iran signalled a reopening of the Strait of Hormuz, briefly easing supply concerns. However, that optimism quickly faded. Tehran walked back its decision within 24 hours, citing continued US naval pressure, and tensions escalated after Iranian forces reportedly targeted vessels in the region.
Prices of commercial LPG were hiked by Rs 195.50 on 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.
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.
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