Petrol and diesel prices across major Indian cities remained unchanged on April 17, even as global oil prices dropped as Trump signalled fresh optimism toward a deal with Iran. 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. The brokerage flagged a high likelihood of retail fuel price hikes after elections in key states like West Bengal and Tamil Nadu at the end of this month.
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 Drops To $98 As Trump Signals Hope On Iran Deal Near Conflict's 50-Day Mark
Global Oil Prices
Oil prices retreated after US President Donald Trump struck a more optimistic note on the prospects of a lasting ceasefire with Iran, offering markets a breather after weeks of turbulence. Brent crude eased toward $98 a barrel, while US benchmark West Texas Intermediate hovered near $93, reversing part of the previous session's sharp gains.
The pullback followed Trump's assertion that Tehran had signalled willingness to accept terms it has long resisted, including reopening the strategically critical Strait of Hormuz. However, Iranian authorities have yet to publicly confirm any such concessions, leaving traders wary.
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.
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.
Get all the latest updates on the US, Israel-Iran war here.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.