On October 14, petrol and diesel prices across India's major metropolitan areas have held steady, offering consumers a brief respite from potential hikes. This domestic stability comes even as international crude oil markets experienced an uptick, fueled by geopolitical tensions in the Middle East.
Global Crude Prices Climb Amid Tensions
Global crude oil benchmarks saw a notable increase, with Brent crude surpassing $106 per barrel and US West Texas Intermediate (WTI) crude rising to $94.63 per barrel. The surge follows fresh attacks on Saudi targets by Yemen’s Houthi rebels, renewing fears over supply disruptions from the crucial oil-producing region.
Despite these international market dynamics, India's state-run oil marketing companies (OMCs), including Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum, have maintained existing retail prices for petrol and diesel. In contrast, private fuel retailers like Jio-bp and Nayara Energy have reportedly adjusted their prices upwards in recent days, reflecting the pressure from elevated global oil and refined fuel costs on their profit margins.
India's Import Dependency and OMC Pressures
As India imports approximately 90% of its crude oil requirements, sustained high international prices could significantly inflate the nation's oil import bill. This scenario places considerable financial strain on domestic fuel retailers.
Reports from ICRA indicate that state-run OMCs faced substantial marketing margin losses in September, estimated at minus ₹8 per litre on petrol and minus ₹9 per litre on diesel. These combined daily losses were approximated at ₹530 crore, highlighting the challenge of absorbing higher input costs without passing them on to consumers.
Latest Fuel Rates in Major Cities (October 14)
- Mumbai: Petrol ₹111.21/litre, Diesel ₹97.83/litre
- Delhi: Petrol ₹102.12/litre, Diesel ₹95.20/litre
- Kolkata: Petrol ₹113.51/litre, Diesel ₹99.82/litre
- Chennai: Petrol ₹107.76/litre, Diesel ₹99.55/litre
- Bengaluru: Petrol ₹111.68/litre, Diesel ₹99.56/litre
- Hyderabad: Petrol ₹116.15/litre, Diesel ₹104.23/litre
Factors Influencing Domestic Prices
While global crude prices are a primary driver, the rupee-dollar exchange rate also plays a critical role. A weakening rupee makes crude oil imports more expensive, potentially leading to higher retail fuel prices. For daily commuters, the current stability means no immediate shock at the pump, though prices remain elevated compared to previous years. Consumers are advised to monitor local rates, as city-specific taxes can cause variations even within the same state.