India is witnessing mounting pressure on petrol and diesel prices in its major cities as the costs of crude oil imports edge closer to the $100 per barrel mark. This surge is attributed to escalating geopolitical tensions and fluctuations in the global oil markets. As of Monday, petrol in the capital city of Delhi was priced at ₹102.12 per litre, while diesel was at ₹95.20. In Mumbai, the prices were slightly higher with petrol at ₹111.21 and diesel at ₹97.83. Gurgaon saw petrol rates standing at ₹102.97 and diesel at ₹95.64.
In other Indian cities, the price variations continue. For instance, Bengaluru recorded petrol at ₹110.82 per litre, with diesel priced at ₹98.77. Bhubaneswar’s prices were noted at ₹108.97 for petrol and ₹100.68 for diesel. Meanwhile, Chandigarh presented lower rates of ₹101.54 for petrol and ₹89.47 for diesel. These disparities in fuel prices across different states are primarily due to variations in Value Added Tax (VAT), local levies, and transportation expenses.
The recent increase in crude oil prices is occurring amidst heightened tensions in West Asia and military confrontations involving the United States and Iran. This has led to a rise in Brent crude prices, which in turn has pushed India’s average crude import basket to nearly its highest level in three months. Given that India depends on imports for more than 88% of its crude oil needs, the domestic fuel prices are particularly vulnerable to international oil price fluctuations.
Adding to the complexity, domestic petrol consumption saw a rise of 7.9% in August, reaching 3.824 million tonnes. Despite the surge in global oil costs, state-owned oil marketing companies in India have largely maintained retail petrol and diesel prices at stable levels. These companies, which manage more than 90% of the country’s petrol stations, are facing increasing pressure from the rising international crude prices while keeping domestic fuel prices unchanged.