India's Fuel Prices Remain Stable as US-Iran Tensions Escalate

Fuel prices in India remained stable across major cities on August 16, despite an increase in crude oil prices. The global benchmark Brent crude oil settled 1.67% higher at $88.52 a barrel on Friday.

In the Indian market, petrol and diesel prices were unchanged in Delhi, Mumbai, and Bengaluru. The price of petrol in New Delhi remained at ₹102.12 per liter, while diesel cost ₹95.20 per liter. In Mumbai, petrol was priced at ₹111.21 per liter, and diesel at ₹97.83 per liter.

The central government has made adjustments to export levies on petroleum products. The Ministry of Finance's Department of Revenue reduced the duty on diesel exports to ₹24 per liter from ₹25.5. For the 15-31 August fortnight, the Special Additional Excise Duty (SAED) and Road and Infrastructure Cess (RIC) on petrol exports was set at zero per liter.

Economist Santosh Mehrotra warned that a reduction in India's Russian crude purchases by 50% could increase oil import costs by $5-10 billion annually. He also cautioned that this could put pressure on the external account and lead to inflationary pressures, which could push global crude prices higher.