India is currently witnessing a strain on petrol and diesel prices as crude oil import costs edge towards the $100 per barrel mark, largely due to intensifying geopolitical tensions and fluctuations in the global oil markets. This development has seen petrol prices in Delhi reach ₹102.12 per litre, with diesel at ₹95.20. Meanwhile, in Mumbai, the rates have climbed to ₹111.21 for petrol and ₹97.83 for diesel. The city of Gurgaon has recorded petrol prices at ₹102.97 and diesel at ₹95.64 per litre.
Bengaluru’s fuel pricing mirrors the national trend with petrol at ₹110.82 and diesel at ₹98.77. In Bhubaneswar, petrol is priced at ₹108.97 and diesel at ₹100.68, whereas Chandigarh reports comparatively lower rates of ₹101.54 for petrol and ₹89.47 for diesel. These variations in fuel prices across different states are primarily attributed to disparities in Value Added Tax (VAT), local levies, and transportation expenses.
The surge in crude oil prices can be traced back to escalating tensions in West Asia, coupled with military engagements involving the United States and Iran. This has led to an increase in Brent crude prices, pushing India’s average crude import basket to its highest point in three months. With over 88% of its crude oil needs met through imports, India’s domestic fuel prices are particularly vulnerable to shifts in international oil prices.
Despite the upward trend in global oil prices, state-owned oil marketing companies in India have largely maintained stable retail prices for petrol and diesel. These companies, which control more than 90% of the country’s petrol stations, are experiencing mounting pressure as they navigate the widening gap between rising international crude prices and relatively unchanged domestic fuel rates. Concurrently, there has been a 7.9% increase in petrol consumption within India, with August figures reaching 3.824 million tonnes.