The ongoing war between Iran and America has been going on since the ceasefire period. The leaders of America and Iran are engaged in peace talks in Pakistan. Ever since Trump announced the ceasefire, there has been a decline in the prices of crude oil. Where the price of American crude oil has come down to $96.57 per barrel. Whereas crude oil of Gulf countries is being seen at $95.20 per barrel. However, crude oil prices are still seen 20 to 25 dollars per barrel more than the pre-war level.
However, after the ceasefire and subsequent peace talks start, the market is hopeful that the whole matter will be resolved soon and the prices of crude oil will come down once again. But do you know how much is left after petrol and diesel in your city? Do you know what the prices of crude oil have become in your cities after the recent fall of 10 to 15 dollars per barrel?
If we look at the data of IOCL, there has been no change in the prices of petrol and diesel on Sunday, April 12. Oil marketing companies (OMCs) update fuel prices every day at 6 am. The prices are decided according to changes in global crude oil prices and currency exchange rates.
This approach to daily price changes is designed to promote transparency and ensure consumers have the most up-to-date information on retail fuel prices. However, despite fluctuations in international oil markets, the Indian government has indicated that petrol and diesel prices are expected to remain stable for now. Oil marketing companies themselves will bear some part of the sudden changes in prices, so that consumers are not shocked by the sudden increase in prices.
Turbulence in crude oil amid tension in the Middle East
Due to the ongoing conflict between Iran, Israel and America in the Middle East, crude oil prices have been quite volatile in the international market in recent times. The crisis has raised concerns about possible disruptions to oil shipments through the Strait of Hormuz. This is a very important energy route through which about 20 percent of the global oil supply passes. Despite this turmoil in global energy markets, Indian officials have indicated that retail prices of petrol and diesel will remain stable in the near future. This will provide relief to consumers and will also help in controlling inflationary pressure.
Petrol, diesel prices in India
| City | petrol (rupees per liter) | diesel (rupees per liter) |
| New Delhi | 94.77 | 87.67 |
| Mumbai | 103.54 | 90.03 |
| Kolkata | 105.45 | 92.02 |
| Chennai | 101.06 | 92.61 |
| Ahmedabad | 94.84 | 90.51 |
| Bengaluru | 102.92 | 90.99 |
| Hyderabad | 107.50 | 95.70 |
| Jaipur | 104.86 | 90.34 |
| Lucknow | 94.84 | 87.98 |
| Pune | 104.36 | 90.88 |
| Chandigarh | 94.30 | 82.45 |
| Indore | 106.55 | 91.94 |
| Patna | 105.54 | 91.78 |
| Surat | 94.32 | 90.01 |
| Nashik | 104-76 | 91.27 |
| source: : IOCL | ||
Why do fuel prices vary according to cities?
Petrol and diesel prices in India have remained unchanged since May 2022, when the central government and several state governments cut taxes. Although fuel prices are technically linked to global crude oil prices, they are also influenced by a number of regulatory and economic factors, including taxes and exchange rates.
Increase in windfall tax
The government on Saturday increased the export duty or windfall profit tax on diesel to Rs 55.5 per litre. This rate for aviation fuel (ATF) will now be Rs 42 per liter. The Finance Ministry said in a notification that this increase in fees will come into effect with immediate effect. Earlier on March 26, the government had imposed export duty of Rs 21.50 per liter on diesel and Rs 29.5 per liter on ATF. These duties were imposed to increase the availability of fuel in the domestic market amid the ongoing war in West Asia. The purpose of these duties is to prevent exporters from taking unfair advantage of the difference between international and domestic prices, as global crude oil prices have skyrocketed since the war began.
Premium petrol prices increased
On April 1, the price of Indian Oil’s XP100 petrol was increased significantly. This is India’s first 100-octane premium fuel. Its price was increased by Rs 11 per liter from Rs 149 to Rs 160. This high-performance fuel is primarily used in luxury cars and superbikes, where the high octane levels help improve engine efficiency and performance. The prices of premium diesel variant Xtra Green have also been changed. Now it will be sold at a price of Rs 92.99 per liter, which was earlier Rs 91.49.
Nayara and Shell increased fuel prices
Private fuel retailers have started increasing prices. Following a similar move by Nayara Energy, Shell India raised petrol and diesel rates on April 1 as higher crude prices put pressure on their margins. Petrol prices in Bengaluru have increased by Rs 7.41 per liter. The price of the Standard variant is now Rs 119.85 per liter, while the price of the Power variant is Rs 129.85. Prices may vary in different cities due to local taxes. Diesel prices have increased much more rapidly, rising by Rs 25.01 per litre. The regular variant is now being sold for Rs 123.52, while the premium variant is priced at Rs 133.52 per litre.
Will the prices of regular fuel also increase now?
Now the biggest question is whether the prices of regular petrol and diesel will also increase in the coming days. At present, oil companies seem to be avoiding any increase in the prices of commonly used fuels due to inflation concerns. However, due to the rapid increase in global crude oil prices and weakening of the rupee, the pressure on companies like BPCL, HPCL and IOCL is continuously increasing. If international oil prices remain high for a long time, it may be difficult for oil companies to make losses, and the possibility of changes in regular fuel prices is increasing.
Which factors affect fuel prices?
- Crude Oil Prices: Global crude oil prices are the main basis for petrol and diesel rates, because crude oil is the main raw material used in making these fuels.
- Exchange Rate: India imports a large part of its crude oil. Therefore, the value of the Indian Rupee against the US Dollar plays an important role in determining fuel prices. A weak rupee generally increases the cost of imports.
- Tax: A major part of the retail price of petrol and diesel is made up of central excise duty and state-level VAT, which vary from state to state and result in variation in fuel prices across cities. Refining costs: The cost of converting crude oil into petrol and diesel also affects retail prices. These costs depend on the efficiency of the refinery and the type of crude oil used.
- Equation of demand and supply: Changes in demand and supply conditions of fuel can also affect the price trends in the domestic markets.
How to know the prices of petrol and diesel through SMS
Consumers can also know the latest fuel prices in their city through SMS.
Indian Oil Customers: Write your city code followed by RSP and send it to 9224992249.
BPCL Customers: Write RSP and send it to 9223112222.
HPCL Customers: Write HP Price and send it to 9222201122.
These services allow consumers to instantly know the latest rates of petrol and diesel without visiting the petrol pump.