Fuel prices in key Indian cities are under increasing strain as the cost of the country’s crude oil imports nears the $100 per barrel mark. This spike is attributed to escalating geopolitical tensions and instability in global oil markets. In Delhi, petrol is currently priced at ₹102.12 per litre, while diesel is at ₹95.20. Mumbai sees even higher prices, with petrol at ₹111.21 and diesel at ₹97.83. In Gurgaon, petrol costs ₹102.97 and diesel ₹95.64.
Bengaluru residents are paying ₹110.82 per litre for petrol and ₹98.77 for diesel. In Bhubaneswar, the prices are set at ₹108.97 for petrol and ₹100.68 for diesel. Chandigarh offers slightly lower rates, with petrol priced at ₹101.54 and diesel at ₹89.47. The variation in fuel prices across states is largely due to differences in VAT, local taxes, and transportation costs.
The surge in crude oil prices is linked to growing tensions in West Asia, coupled with military confrontations involving the United States and Iran. Brent crude prices have also seen an uptick, resulting in India’s average crude import basket nearing its highest point in three months. These developments are particularly significant for India, which imports over 88% of its crude oil needs, making domestic fuel prices highly susceptible to fluctuations in international oil markets.
Adding to the complexity, there has been a 7.9% increase in domestic petrol consumption, reaching 3.824 million tonnes in August. Despite the rising global costs, state-owned oil marketing companies have maintained retail petrol and diesel prices at largely unchanged levels. These companies, which manage over 90% of India’s petrol stations, are under mounting pressure as international crude prices climb, yet domestic fuel prices remain relatively stable.