Fuel prices in India’s major cities are under increasing strain as the cost of the country’s crude oil imports nears the $100 per barrel mark. This surge is largely attributed to escalating geopolitical tensions and the instability of global oil markets.
In Delhi, the cost of petrol on Monday was ₹102.12 per litre, while diesel was priced at ₹95.20. Meanwhile, Mumbai saw petrol at ₹111.21 and diesel at ₹97.83. Gurgaon reported petrol prices at ₹102.97 and diesel at ₹95.64. In Bengaluru, the rates stood at ₹110.82 per litre for petrol and ₹98.77 for diesel, whereas Bhubaneswar had petrol at ₹108.97 and diesel at ₹100.68. Chandigarh offered slightly lower prices of ₹101.54 for petrol and ₹89.47 for diesel. These price variations across states are mainly due to differences in VAT, local taxes, and transportation expenses.
The rise in crude oil prices can be linked to intensified tensions in West Asia, coupled with military confrontations involving the United States and Iran. The surge in Brent crude prices has, consequently, driven India’s average crude import basket to nearly its highest point in three months. Since India imports more than 88% of its crude oil needs, fluctuations in international oil prices significantly impact domestic fuel costs.
Adding to the pressure, domestic petrol consumption saw a 7.9% increase in August, reaching 3.824 million tonnes. Despite these rising global costs, state-owned oil marketing companies, which control over 90% of India’s petrol stations, have mostly kept retail petrol and diesel prices stable. Nonetheless, these companies are facing mounting challenges as international crude prices continue to climb while domestic prices remain largely unchanged.