Rising geopolitical tensions and fluctuating global oil markets have led to increasing pressure on petrol and diesel prices in major Indian cities, as the cost of the country’s crude oil imports nears $100 per barrel. This development has significant implications for India’s economy, which heavily depends on oil imports to meet its energy needs.
In Delhi, the cost of petrol was recorded at ₹102.12 per litre on Monday, while diesel was priced at ₹95.20. The financial hub of Mumbai saw petrol prices at ₹111.21 and diesel at ₹97.83. Meanwhile, in Gurgaon, petrol was available at ₹102.97 per litre and diesel at ₹95.64. Other cities, such as Bengaluru and Bhubaneswar, reported petrol prices at ₹110.82 and ₹108.97 respectively, with diesel in those cities costing ₹98.77 and ₹100.68. Chandigarh posted relatively lower rates, with petrol at ₹101.54 and diesel at ₹89.47. These variations are largely attributable to differing VAT, local taxes, and transportation expenses across states.
The escalation in crude oil prices is linked to heightened tensions in West Asia and military engagements involving the United States and Iran. This situation has pushed Brent crude prices upward, which in turn has driven India’s average crude import basket close to its highest levels in three months. Such increases pose challenges for a country that relies on imports for over 88% of its crude oil needs, making domestic fuel prices particularly sensitive to international market shifts.
Despite the upward trend in global oil costs, India’s state-owned oil marketing companies have maintained stability in retail petrol and diesel prices. These companies, which manage more than 90% of the country’s petrol stations, are under increased pressure due to the disparity between rising international crude prices and relatively stable domestic fuel prices. Notably, India’s petrol consumption saw a 7.9% rise in August, reaching 3.824 million tonnes, reflecting a growing demand amid these economic pressures.