Fuel prices in major Indian cities are under renewed pressure as the cost of the country’s crude oil imports nears $100 per barrel. This increase is largely attributed to escalating geopolitical tensions and the volatility of global oil markets. As of Monday, the price of petrol in Delhi stood at ₹102.12 per litre, with diesel priced at ₹95.20. In Mumbai, the prices were higher, with petrol at ₹111.21 and diesel at ₹97.83. Meanwhile, Gurgaon saw petrol prices at ₹102.97 and diesel at ₹95.64.
Elsewhere, petrol in Bengaluru was priced at ₹110.82 per litre and diesel at ₹98.77. Bhubaneswar recorded petrol prices of ₹108.97 and diesel at ₹100.68, whereas Chandigarh had comparatively lower rates for petrol at ₹101.54 and diesel at ₹89.47. These variations in fuel prices across different states are primarily due to differences in VAT, local taxes, and transportation costs.
The surge in crude oil prices is happening against the backdrop of increased tensions in West Asia and military skirmishes involving the United States and Iran. The Brent crude prices have seen an upward trend, bringing India’s average crude import basket close to its highest point in three months. This is significant for India, as the nation depends on imports for more than 88% of its crude oil needs, making local fuel prices highly susceptible to global oil price fluctuations.
Adding to the complexity, domestic petrol consumption has risen by 7.9% in August, reaching 3.824 million tonnes. Despite the global rise in crude costs, state-owned oil marketing companies, which operate over 90% of India’s petrol stations, have largely kept retail petrol and diesel prices stable. However, these companies are feeling increasing pressure as international crude prices continue to climb while domestic fuel prices remain relatively unchanged.