India is witnessing a fresh surge in petrol and diesel prices across its major cities as the cost of crude oil imports nears $100 per barrel. This increase is fueled by escalating geopolitical tensions and a volatile global oil market, which have significantly impacted the country’s import costs.
As of the beginning of the week, Delhi saw petrol prices at ₹102.12 per litre, with diesel at ₹95.20. In Mumbai, the figures were higher, with petrol priced at ₹111.21 and diesel at ₹97.83. Meanwhile, Gurgaon experienced petrol prices at ₹102.97 per litre and diesel at ₹95.64. Other cities like Bengaluru and Bhubaneswar recorded petrol at ₹110.82 and ₹108.97 per litre, respectively, while diesel was ₹98.77 in Bengaluru and ₹100.68 in Bhubaneswar. Chandigarh reported comparatively lower rates, with petrol at ₹101.54 and diesel at ₹89.47.
The variation in fuel prices across different states in India can largely be attributed to discrepancies in VAT, local taxes, and transportation costs. The recent spike in crude oil prices is linked to increased tensions in West Asia and military conflicts involving major players such as the United States and Iran. This situation has led to a rise in Brent crude prices, bringing India’s average crude import basket closer to its peak in the past three months.
Given that India depends on imports for over 88% of its crude oil needs, any fluctuations in international oil prices have a substantial impact on domestic fuel costs. Despite this, there has been a notable increase in petrol consumption within the country, which grew by 7.9% in August, reaching 3.824 million tonnes.
State-owned oil marketing companies, which control more than 90% of India’s petrol stations, have so far managed to keep retail petrol and diesel prices steady, despite the rising pressures from the international crude market. This decision has come even as these companies face growing financial strain from maintaining stable domestic fuel prices amid surging global costs.