Petrol and Diesel Prices Remain Unchanged in India

Key Figures:

• Sensex: fell over 1,600 points (around 2.1 percent) on Monday
• Nifty: dropped more than 2.2 percent in early trade on Monday
• Petrol Price (Delhi): Rs 94.77 per litre
• Diesel Price (Delhi): Rs 87.67 per litre
• Petrol Price (Mumbai): Rs 103.49 per litre
• Diesel Price (Mumbai): Rs 90.03 per litre

Market Update:

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Benchmark indices, Sensex and Nifty, opened the week deep in the red on Monday due to a broader risk-off sentiment across global markets amid escalating US-Iran tensions. However, retail fuel rates in India remained largely unchanged despite the sharp market fall and continued volatility in global oil prices.

Fuel Prices in India:

Retail fuel prices in India are revised daily based on movements in global crude oil prices and changes in foreign exchange rates. The three major oil marketing companies (OMCs) - Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) - align fuel prices with international crude prices and currency exchange rate movements.

Factors Affecting Petrol and Diesel Prices:

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Retail fuel prices in India are influenced by several factors, including:

• Crude Oil Prices: The primary raw material used to produce petrol and diesel
• Rupee-Dollar Exchange Rate: A weaker rupee can increase the cost of imported crude, potentially pushing up fuel prices
• Taxes: Imposed by the central and state governments, forming a major component of petrol and diesel prices
• Transportation Costs: Influence the final retail price paid by consumers
• Demand-Supply Dynamics: Also influence the final retail price paid by consumers

Historical Context:

Retail fuel prices have seen limited movement since May 2022, when the central government and several states reduced excise duties and value-added taxes on fuel. Despite volatility in global crude oil markets, petrol and diesel prices in India have remained largely stable over the past few years.