Fuel prices remained unchanged across major Indian cities on Thursday, June 25, even as global crude oil prices slipped back to pre-conflict levels following signs of easing tensions between the United States and Iran.
Brent crude falls to pre-war level
Brent crude declined to around $72.48 per barrel on Thursday after geopolitical concerns eased, reversing the gains recorded during the US-Iran conflict. The fall comes as both Washington and Tehran have indicated progress after their initial round of negotiations, raising expectations that the conflict could move towards a more lasting resolution.
Despite the drop in crude prices, petrol and diesel rates in India have not been revised.
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Petrol and diesel prices remain steady
Fuel prices have stayed unchanged on June 25, even after crude oil softened in the international market.
Since the start of the US-Iran war, petrol and diesel prices have been increased four times. The latest revision, announced last month, raised petrol prices by Rs 2.6 per litre and diesel prices by Rs 2.7 per litre. Overall, fuel prices have gone up by around Rs 7.5 to Rs 8 per litre since the conflict began.
According to the latest data released by the Ministry of Petroleum and Natural Gas on Monday, oil marketing companies have also witnessed a sharp decline in under-recoveries. Petrol under-recoveries have fallen by 83% to Rs 3 per litre from Rs 24 per litre recorded on April 1. Diesel under-recoveries have dropped by 75% to Rs 27 per litre from Rs 105 per litre during the same period.
Petrol and diesel prices in major cities on June 25
Petrol prices
Delhi: Rs 102.12 per litre
Kolkata: Rs 113.51 per litre
Mumbai: Rs 111.21 per litre
Chennai: Rs 108.01 per litre
Hyderabad: Rs 115.73 per litre
Bengaluru: Rs 110.89 per litre
Diesel prices
Delhi: Rs 95.20 per litre
Kolkata: Rs 99.82 per litre
Mumbai: Rs 97.83 per litre
Chennai: Rs 99.66 per litre
Hyderabad: Rs 103.82 per litre
Bengaluru: Rs 98.80 per litre
Why are crude prices falling?
International oil prices extended losses for another session, with Brent crude slipping more than 1.5% to around $72.4 per barrel, while US benchmark West Texas Intermediate (WTI) fell about 1.43% to nearly $69.3 per barrel. The decline followed a sharp 4% drop in the previous session, taking Brent back to levels seen before the US-Iran conflict.
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Market sentiment has improved as traders reduced the geopolitical risk premium that had lifted oil prices earlier. Another sign of easing tensions is the growing number of oil tankers moving through the Strait of Hormuz with their tracking systems switched on, indicating shipping activity is gradually returning to normal.
What determines fuel prices in India?
Retail petrol and diesel prices are influenced by several factors. International crude oil prices play the biggest role as India imports a significant share of its crude requirements. The rupee's exchange rate against the US dollar also affects import costs. In addition, central excise duty and state VAT vary across states, which is why fuel prices differ from one city to another.
FAQs:
What are the petrol and diesel prices in Delhi today?
Petrol is priced at Rs 102.12 per litre, while diesel costs Rs 95.20 per litre in Delhi on June 25.
What are today's petrol and diesel prices in Kolkata?
Petrol is retailing at Rs 113.51 per litre and diesel at Rs 99.82 per litre in Kolkata on June 25.
