Petrol and diesel prices in major Indian cities are under increasing pressure as the cost of crude oil imports nears $100 per barrel. This surge is attributed to escalating geopolitical tensions and fluctuations in the global oil market.
As of Monday, fuel prices in India saw petrol in Delhi at ₹102.12 per litre and diesel at ₹95.20. In Mumbai, the rates were higher, with petrol at ₹111.21 and diesel at ₹97.83. In Gurgaon, petrol was priced at ₹102.97 and diesel at ₹95.64. Meanwhile, Bengaluru witnessed petrol at ₹110.82 per litre and diesel at ₹98.77. In Bhubaneswar, petrol cost ₹108.97 and diesel ₹100.68, while Chandigarh reported lower rates of ₹101.54 for petrol and ₹89.47 for diesel.
The variation in fuel prices across different states is primarily due to differences in Value Added Tax (VAT), local taxes, and transportation expenses. The rise in crude oil prices is linked to increased tensions in West Asia, particularly involving military clashes between the United States and Iran. This has led to a spike in Brent crude prices, pushing India’s average crude import basket close to its highest in three months.
India’s dependency on imports for more than 88% of its crude oil needs makes its domestic fuel prices highly susceptible to changes in international oil prices. Meanwhile, the country’s petrol consumption rose by 7.9% in August, reaching 3.824 million tonnes.
Despite the rising costs globally, state-owned oil marketing companies, which operate over 90% of India’s petrol stations, have maintained retail petrol and diesel prices largely unchanged. However, these companies are under mounting pressure as international crude prices continue to climb while domestic fuel prices remain comparatively stable.