Indian consumers saw no change in petrol and diesel prices across major cities on October 16, with state-run oil marketing companies (OMCs) like Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum maintaining stable rates. This stability comes despite a recent easing in global crude oil prices.
Global Crude Prices Decline, OMCs Absorb Costs
Brent crude oil eased to approximately $105.8 per barrel, while US West Texas Intermediate (WTI) crude declined to $97.71 per barrel in early trade. This decline followed an earlier surge driven by concerns over supply disruptions, including renewed Houthi attacks on Saudi targets and ongoing risks to shipping through the Strait of Hormuz.
Despite the fluctuations in international oil markets, Indian OMCs have kept retail fuel prices unchanged. This strategy has placed significant pressure on their marketing margins. ICRA estimated that in September, state-run OMCs faced negative margins of around ₹8 per litre on petrol and ₹9 per litre on diesel, accumulating daily losses of approximately ₹530 crore. India's substantial reliance on crude oil imports means that sustained high global prices could further strain these margins if retail rates remain stable.
City-Wise Fuel Prices on October 16
Here are the latest petrol and diesel prices in major Indian cities:
- Mumbai: Petrol ₹111.21/L, Diesel ₹97.83/L
- Delhi: Petrol ₹102.12/L, Diesel ₹95.20/L
- Kolkata: Petrol ₹113.51/L, Diesel ₹99.82/L
- Chennai: Petrol ₹107.76/L, Diesel ₹99.55/L
- Bengaluru: Petrol ₹111.68/L, Diesel ₹99.56/L
- Hyderabad: Petrol ₹116.15/L, Diesel ₹104.23/L
Geopolitical Factors and Rupee Exchange Rate
The global crude oil market continues to be influenced by geopolitical uncertainties, particularly concerns over Middle East supply disruptions and the security of key oil infrastructure and shipping routes. While expectations of increased Russian diesel exports might alleviate some supply pressures, the overall international energy landscape remains volatile.
For India, the rupee-dollar exchange rate is another critical variable. A weakening rupee increases the cost of imported crude, which can eventually impact retail fuel prices. For daily commuters, the current stability means no immediate price shocks at the pump, though current rates remain elevated compared to previous years. Consumers are advised to monitor local rates, as city-specific taxes lead to variations even within the same state.