Fuel prices in major Indian cities are under mounting pressure as the cost of crude oil imports nears the $100 per barrel mark. This spike is largely attributed to escalating geopolitical conflicts and increased volatility in global oil markets. As a result, residents in cities like Delhi, Mumbai, and Bengaluru are witnessing a rise in the cost of petrol and diesel.
On Monday, the price of petrol in Delhi was pegged at ₹102.12 per litre, with diesel at ₹95.20. In Mumbai, these prices climbed further, with petrol at ₹111.21 and diesel at ₹97.83. Gurgaon saw petrol priced at ₹102.97 and diesel at ₹95.64. Meanwhile, in Bengaluru, the rates were ₹110.82 for petrol and ₹98.77 for diesel. Bhubaneswar recorded petrol prices at ₹108.97 and diesel at ₹100.68, while Chandigarh offered slightly lower rates at ₹101.54 for petrol and ₹89.47 for diesel. These variations are primarily due to the differing state VAT, local taxes, and transportation costs.
The surge in crude oil prices is occurring against a backdrop of rising tensions in West Asia, particularly involving military confrontations between the United States and Iran. This has led to an increase in Brent crude prices, pushing the average cost of India’s crude import basket to its highest level in three months. India, which imports over 88% of its crude oil, is particularly vulnerable to fluctuations in international oil prices. Further complicating the situation, domestic petrol consumption saw a 7.9% increase in August, reaching 3.824 million tonnes.
Despite the global increase in crude costs, India’s state-owned oil marketing companies have maintained retail petrol and diesel prices at current levels. These companies, which manage over 90% of the country’s petrol stations, are facing the challenge of balancing rising international crude oil prices with the need to keep domestic fuel prices stable. This delicate balance continues as global market dynamics exert pressure on domestic pricing strategies.