Crude oil prices fell around 1% on Friday, Sept. 18, extending losses for a third session, as hopes of alternative ways to move Middle East oil to global markets eased supply concerns. Brent crude futures fell $1.01, or 1%, to $103.77 a barrel, while US West Texas Intermediate crude declined $1.03, or 1%, to $100.88 a barrel by 0020 GMT.
Oil prices stayed above the $100-a-barrel mark even as markets looked past fresh strikes between Saudi Arabia and Yemen's Iran-backed Houthis. Saudi Arabia is offering additional crude cargoes to Asian refiners through ship-to-ship transfers off Oman's Sohar port, which could help offset some of the disruption caused by attacks on the country's East-West pipeline.
The market is also watching efforts to restore the Saudi pipeline, with the US energy secretary saying crude should be flowing through it within days. Three pumping stations were damaged in the attack, and traders have said a prolonged shutdown could affect as much as 4% of global oil supply. Meanwhile, a sharp fall in vessel traffic through the Strait of Hormuz continues to underline the risks to regional oil supplies.
In India, petrol and diesel prices remained unchanged on Friday, Sept. 18, with no fresh revision in domestic retail rates. Consumers in major cities continued to pay the prevailing fuel prices as the market tracked developments in global crude oil prices.
Also Read: Oil Prices Decline For Third Day: Brent Crude Dips Below $104 As Saudi Moves To Restore Key Pipeline
Petrol prices on September 18
- 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 107.77/litre
- Petrol price in Hyderabad: Rs 115.69/litre
- Petrol price in Bengaluru: Rs 110.89/litre
Diesel prices on September 18
- 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 99.55/litre
- Diesel price in Hyderabad: 103.82/litre
- Diesel price in Bengaluru: 98.80/litre
What Drives Petrol and Diesel Prices?
Despite the rise in international crude prices, state-run oil marketing companies have kept petrol and diesel prices unchanged since the end of May. Domestic fuel rates are not linked to crude prices alone. Oil companies also factor in the rupee-dollar exchange rate, refining costs, taxes and dealer margins while deciding retail prices, which means pump prices do not necessarily move every time global crude prices rise or fall.
Meanwhile, the government has reduced the windfall tax on fuel exports with effect from Sept. 16. The levy on diesel exports was cut to Rs 20 per litre from Rs 25, while the tax on petrol exports was reduced to Rs 0.50 per litre from Rs 1.50. The levy on aviation turbine fuel was also lowered to Rs 15 per litre from Rs 19. The changes apply to exports and do not directly affect petrol and diesel prices in the domestic market.
Also Read: Windfall Tax Revised: Govt Trims Export Duty On Petrol To Rs 0.5/Litre; Diesel, ATF Also See Cuts
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