Petrol and diesel prices continue to remain stable in major Indian cities amid the conflict in the Middle East, which appeared to show signs of de-escalation on Monday.
The conflict in the Middle East, which is in its fourth week now, was slated for further escalation with US President Donald Trump threatening strikes against Iran's energy infrastructure over the closure of the Strait of Hormuz.
However, on Monday, Trump claimed that talks were underway between Washington and Tehran, and announced that he would hold off on strikes against Iran's power plants.
Also Read | India in talks with global partners to secure safe passage for vessels: PM
Although Iran has officially denied that talks have taken place, reports quoting Iranian officials indicate that some communication is ongoing between Washington and Tehran as a pre-cursor to talks to end the conflict, which has, over the past few weeks, rattled global oil markets due to an effective stop in maritime traffic through the Strait of Hormuz, a key waterway for global energy trade.
Consequently, oil prices soared globally, with the price of Brent Crude rising from around $70 in late February to hit $108 on Monday.
However, following Trump's indications of de-escalation, the price of Brent Crude dipped below $100 before rising to $103.
That said, despite significant volatility in the international oil market, petrol and diesel prices for regular customers in India have remained unchanged, although there have been some changes to the price of industrial diesel and premium petrol.
Industrial diesel, premium petrol price hiked With rising international crude prices piling pressure on margins, state-run oil marketing companies (OMCs) in India on Friday raised the price of industrial diesel and premium petrol.
Industrial diesel, which is sold in bulk to commercial establishments, saw its price hiked by ₹21.92 a litre—a considerable 25% increase—while the price of premium petrol was raised by ₹2 a litre.
Regular petrol and diesel prices Regular petrol and diesel prices, which account for a significant chunk of daily sales at pumps, have been left unchanged.
The three major oil marketing companies (OMCs) in India — Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) — revise prices at 6 am every day to ensure rates align with international crude prices and currency exchange rate movements.
Below are petrol and diesel prices across major Indian cities on Tuesday, 24 March.
City Petrol ( ₹ /L) Diesel ( ₹ /L) Delhi ₹ 94.77 ₹ 87.67 Mumbai ₹ 103.54 ₹ 90.03 Kolkata ₹ 105.45 ₹ 92.02 Chennai ₹ 100.84 ₹ 92.39 Hyderabad ₹ 107.46 ₹ 95.70 Bengaluru ₹ 102.96 ₹ 90.99 Lucknow ₹ 94.69 ₹ 87.81 Ahmedabad ₹ 94.49 ₹ 90.17
Factors affecting petrol and diesel prices in India There are several factors that influence the prices of petrol and diesel in India, with the most significant being the price of crude oil on global markets.
The rupee-dollar exchange rate also plays an important role in determining the price of petrol and diesel, given the fact that India imports a large share of its crude oil requirements. Simply put, a weaker rupee can increase the cost of imported crude, pushing up domestic fuel prices, or vice-versa.
A third factor is the taxes imposed by the Centre and state governments, which form a major component of petrol and diesel prices, and is responsible for fuel price variations across states.