Fuel Prices Remain Stable as Global Crude Hits $102 Per Barrel
On October 4, petrol and diesel prices in major Indian cities remained largely unchanged despite global crude oil prices hovering above $102 per barrel. Saudi Arabia's potential military actions against Iran-backed Houthis in Yemen are adding to geopolitical tensions, which could further impact oil markets. The national average price for petrol stands at ₹111.21 per litre, while diesel is priced at ₹97.83 per litre.
State-run oil marketing companies in India are facing significant financial losses due to the rising global crude prices. According to ICRA, these companies are losing approximately ₹530 crore daily as retail fuel prices have not been adjusted to reflect the international price surge. Brent crude is currently at $102.3 per barrel, while WTI crude stands at $91.11 per barrel.
The disparity between rising import costs and stagnant domestic retail prices is eroding the margins of state refiners. The volatility in crude prices is expected to persist leading up to the US midterm elections in November, adding uncertainty to India's oil import bill and domestic fuel pricing. For consumers, this means relatively stable fuel prices for now, though they remain higher than in previous years.
Fuel prices vary across cities due to differences in local state taxes, transportation charges, and dealer commissions. For example, in Mumbai, petrol is priced at ₹111.21 per litre, while in Delhi, it is ₹102.12 per litre. These variations highlight the impact of local taxes and other factors on the final retail price at the pump.