India's state-run oil marketing companies (OMCs) are currently facing significant financial pressure as global crude oil prices continue their rapid ascent. Despite this upward trajectory in international markets, retail prices for petrol and diesel across major Indian cities remained largely stable on September 28.
The widening gap between escalating import costs and stagnant domestic retail rates is eroding the profit margins of these OMCs. Geopolitical tensions in West Asia, including Houthi attacks on key oil facilities, have contributed to the surge in global energy supply concerns, pushing crude prices higher. Brent crude was reported at $106.7 per barrel, while WTI crude stood at $93.86 per barrel as of the reporting date.
OMCs Bear the Brunt of Price Stability
Rating agency ICRA estimates that these fuel retailers are incurring daily losses of approximately ₹530 crore. This financial strain comes as pump prices for petrol, diesel, and cooking gas have not been adjusted, forcing OMCs to absorb the full impact of the international price increases. The government has indicated there is no current proposal to hike petrol and diesel rates, suggesting continued support for OMCs if crude prices remain high.
City-Wise Fuel Rates on September 28
Consumers across India saw consistent fuel prices compared to the previous day. Below are the latest rates in major metropolitan areas:
- Mumbai: Petrol ₹111.21 per litre, Diesel ₹97.83 per litre
- Delhi: Petrol ₹102.12 per litre, Diesel ₹95.20 per litre
- Kolkata: Petrol ₹113.51 per litre, Diesel ₹99.82 per litre
- Chennai: Petrol ₹107.76 per litre, Diesel ₹99.55 per litre
- Bengaluru: Petrol ₹111.68 per litre, Diesel ₹99.56 per litre
- Hyderabad: Petrol ₹116.15 per litre, Diesel ₹104.23 per litre
Factors Influencing Local Fuel Prices
Fuel prices vary significantly from city to city primarily due to differences in local state taxes, transportation charges, and dealer commissions. While the base price of refined petrol or diesel is uniform nationwide, these local variables dictate the final retail price at the pump. Both central and state government taxes constitute a substantial portion of the final cost, explaining regional discrepancies.
The rupee-dollar exchange rate also plays a crucial role, as India heavily relies on imported crude. A weakening rupee increases the cost of crude procurement, which can eventually translate into higher retail fuel prices if OMCs cannot continue absorbing the costs.
For daily commuters, this stability means no major shock at the pump, though prices remain elevated compared to previous years. Consumers are advised to monitor local rates as city-specific taxes ensure variations even within the same state.