Fuel prices in major Indian cities are under increasing pressure as the nation’s crude oil import costs approach the $100 per barrel mark. This surge is attributed to escalating geopolitical tensions and instability within global oil markets. As of Monday, petrol prices in Delhi were set at ₹102.12 per litre, with diesel costing ₹95.20. Meanwhile, in Mumbai, motorists paid ₹111.21 for petrol and ₹97.83 for diesel. In Gurgaon, the rates were ₹102.97 for petrol and ₹95.64 for diesel.
Bengaluru saw petrol priced at ₹110.82 per litre and diesel at ₹98.77, while Bhubaneswar’s rates were ₹108.97 for petrol and ₹100.68 for diesel. Chandigarh had comparatively lower prices of ₹101.54 for petrol and ₹89.47 for diesel. These variations in fuel prices across different states are primarily due to differences in Value Added Tax (VAT), local taxes, and transportation costs.
The spike in crude prices comes amid heightened tensions in West Asia, notably involving military confrontations between the United States and Iran. Additionally, the increase in Brent crude prices has pushed India’s average crude import basket close to its peak for the past three months. Given that India imports over 88% of its crude oil requirements, domestic fuel prices are particularly susceptible to fluctuations in international oil prices.
Despite these global cost increases, state-owned oil marketing companies, which control more than 90% of India’s petrol stations, have largely kept retail petrol and diesel prices stable. This decision comes as these companies face mounting pressure due to the rising international crude prices, while domestic fuel prices remain relatively unchanged. At the same time, domestic petrol consumption in India rose by 7.9% in August, reaching 3.824 million tonnes.