State-run oil marketing companies (OMCs) in India, including Indian Oil, BPCL, and HPCL, kept petrol and diesel prices unchanged across major cities on October 13. This stability comes even as international crude oil prices continue to hover above $105 per barrel, notably for Brent crude.
In contrast, private fuel retailers have adjusted their rates. Jio-bp raised petrol prices by ₹5 per litre and diesel by ₹3 per litre from October 11, following a similar move by Nayara Energy earlier in the month.
Global Oil Market Pressures
The international oil market remains volatile. Brent crude was trading around $105.6 per barrel, while US West Texas Intermediate (WTI) crude saw a slight dip to $92.66 per barrel. Despite a proposed energy ceasefire between Russia and Ukraine, and potential additional Russian diesel supplies, ongoing geopolitical tensions and conflicts in the Middle East continue to raise concerns about global supply disruptions.
India, importing approximately 90% of its crude oil requirements, faces significant pressure from sustained high international prices. This situation directly impacts the country's import bill and the profit margins of fuel retailers.
OMCs Face Margin Strain
Despite the stable retail prices, state-run OMCs are under considerable financial strain. According to ICRA, these companies faced negative marketing margins in September, estimated at minus ₹8 per litre for petrol and minus ₹9 per litre for diesel. This translates into combined daily losses of around ₹530 crore, highlighting the challenge of absorbing high crude costs without passing them on to consumers.
The Rupee-Dollar Impact
Another critical factor influencing fuel costs in India is the rupee-dollar exchange rate. As India relies heavily on imported crude, a weakening rupee against the dollar increases the cost of procurement. This can directly contribute to higher retail fuel prices, adding another layer of complexity for both consumers and oil companies.
What This Means for Consumers
For daily commuters, the unchanged prices from state-run OMCs mean no immediate shock at the pump. However, fuel prices remain elevated compared to previous years. Consumers should continue to monitor local rates, as city-specific taxes lead to variations in retail prices even within the same state.