Fuel prices in major Indian cities are once again under pressure, as the cost of crude oil imports nears the $100 per barrel mark. This surge is attributed to escalating geopolitical tensions and unpredictable shifts in global oil markets.
On Monday, petrol prices in Delhi were recorded at ₹102.12 per litre, with diesel at ₹95.20. Meanwhile, in Mumbai, the cost of petrol was ₹111.21, and diesel was priced at ₹97.83. Gurgaon saw petrol priced at ₹102.97 and diesel at ₹95.64. Bengaluru’s rates were ₹110.82 for petrol and ₹98.77 for diesel. Bhubaneswar reported prices of ₹108.97 for petrol and ₹100.68 for diesel, whereas Chandigarh offered slightly lower rates of ₹101.54 for petrol and ₹89.47 for diesel.
The variation in fuel prices across different states is primarily due to discrepancies in VAT, local taxes, and transportation expenses. The current rise in crude oil prices is being driven by increased tensions in West Asia, coupled with military confrontations involving the United States and Iran. This situation has led to a spike in Brent crude prices, pushing India’s average crude import basket dangerously close to its highest level in the last three months.
India is heavily reliant on imports for over 88% of its crude oil needs, rendering domestic fuel prices extremely sensitive to fluctuations in global oil prices. Additionally, the country’s petrol consumption rose by 7.9% in August, reaching 3.824 million tonnes. Despite the global hikes, state-owned oil marketing companies have largely kept retail prices for petrol and diesel steady. These firms, which operate more than 90% of India’s petrol stations, are facing mounting pressure as they balance rising international crude costs against the relative stability of domestic fuel prices.