State-run oil marketing companies (OMCs) have kept petrol and diesel prices unchanged on July 16, extending the status quo that has remained in place since the late-May revision.
State-run oil marketing companies (OMCs) have kept petrol and diesel prices unchanged on July 16, extending the status quo that has remained in place since the late-May revision. Despite volatility in global crude oil markets and escalating geopolitical tensions in the Middle East, motorists across India’s major cities continue to pay the same rates at fuel stations.
Indian Oil, Bharat Petroleum and Hindustan Petroleum follow the country’s daily dynamic pricing mechanism, under which fuel prices can be revised every morning based on fluctuations in global crude oil prices and the rupee’s exchange rate against the US dollar. However, no revision has been announced for Thursday.
The decision comes days after Oil Minister Hardeep Singh Puri indicated that a reduction in domestic fuel prices is not feasible at present. Bank of America has also projected that petrol and diesel prices are unlikely to witness an immediate cut, even as India’s retail inflation has crossed the Reserve Bank of India’s 4% target for the first time in 17 months.
Over the past four months, fuel prices have risen four times, climbing by nearly Rs 7.5-8 per litre amid disruptions triggered by the Iran conflict. In a parallel move, the Centre has revised windfall taxes on petroleum exports in response to the rebound in global crude prices. The new duties, announced through a Finance Ministry notification, came into effect on July 16.
Under the revised structure, the export duty on diesel has been increased from Rs 8.5 per litre to Rs 15.5 per litre, while the levy on aviation turbine fuel (ATF) exports has been raised from Rs 7.5 per litre to Rs 14.5 per litre. Meanwhile, the duty on petrol exports has been reduced from Rs 4 per litre to Rs 2.5 per litre.
Petrol and Diesel Prices on July 16
| City | Petrol (Rs /litre) | Diesel (Rs /litre) |
| New Delhi | Rs 102.12/litre | Rs 95.20/litre |
| Mumbai | Rs 111.12/litre | Rs 97.78 litre |
| Kolkata | Rs 113.43/litre | Rs 99.78/litre |
| Chennai | Rs 107.75/litre | Rs 99.57/litre |
| Bengaluru | Rs 110.93/litre | Rs 98.79/litre |
| Hyderabad | Rs 115.69/litre | Rs 103.82/litre |
Global Crude Prices Surge
Global oil prices extended their rally for a fourth straight session on Thursday as renewed military action involving the United States and Iran intensified concerns over potential supply disruptions through the Strait of Hormuz, a vital artery for the global energy trade.
Benchmark Brent crude traded close to $85 per barrel after surging around 12% over the previous three sessions, while West Texas Intermediate (WTI) hovered near $80 per barrel.
The latest spike followed another round of US airstrikes on Iran, with Washington also claiming it had disabled an unladen oil tanker headed for an Iranian port. The developments have deepened fears that escalating regional tensions could disrupt crude shipments from the Middle East, keeping global oil markets on edge.
What Determines Fuel Prices In India?
International crude oil prices remain the biggest driver of petrol and diesel rates in India, but they are not the only factor. Retail fuel prices are also influenced by central and state taxes, freight charges, refinery margins, and fluctuations in the rupee-dollar exchange rate.
Although the Centre has revised export duties on petroleum products, the move does not directly affect petrol and diesel prices paid by consumers at retail fuel stations.