Commuters across India woke up to stable fuel prices on October 2, with no significant changes in petrol and diesel rates in major metropolitan areas like Delhi, Mumbai, Chennai, and Kolkata. This stability comes despite a notable surge in global crude oil prices, which have climbed above $102 per barrel.
The consistent retail prices are primarily due to state-run oil marketing companies absorbing the rising international import costs. This widening gap between global crude rates and stagnant domestic retail prices is reportedly eroding the margins of these refiners, who are bearing the full impact of the price increases.
National & Major City Rates
As of October 2, the national average for petrol was recorded at ₹111.21 per litre, while diesel stood at ₹97.83 per litre. Prices in key cities reflect this stability:
- Mumbai: Petrol at ₹111.21/litre, Diesel at ₹97.83/litre
- Delhi: Petrol at ₹102.12/litre, Diesel at ₹95.20/litre
- Kolkata: Petrol at ₹113.51/litre, Diesel at ₹99.82/litre
- Chennai: Petrol at ₹107.76/litre, Diesel at ₹99.55/litre
- Bengaluru: Petrol at ₹111.68/litre, Diesel at ₹99.56/litre
- Hyderabad: Petrol at ₹116.15/litre, Diesel at ₹104.23/litre
Global Crude Trends & Local Impact
The international benchmark Brent crude was trading around $102.5 per barrel, with WTI crude at $92.94 per barrel. This upward trajectory in global oil prices is partly attributed to escalating geopolitical tensions in the Middle East, including the deployment of a third US aircraft carrier strike group following renewed attacks on commercial shipping routes.
Despite these global increases, India's domestic fuel prices have remained largely unchanged over the past week. However, the rupee-dollar exchange rate remains a critical factor, as India is a significant importer of crude oil. A weaker rupee typically increases the cost of crude procurement, potentially impacting future retail fuel prices.
Why Fuel Prices Vary Across India
Fuel prices are not uniform across the country, primarily due to variations in local taxes, transportation charges, and dealer commissions. While the base price from oil refineries is consistent nationwide, state and central government taxes constitute a substantial portion of the final retail price, leading to significant differences between cities and states.
Consumers are advised to monitor local rates, as city-specific taxes can cause prices to fluctuate even within the same state. The interplay of global crude costs, currency exchange rates, and local levies continues to shape the price at the pump for Indian motorists.