Despite sharp volatility and supply fears in global energy markets, petrol and diesel prices in several major Indian metropolitan areas held steady on April 13. This stability comes amid heightened global tensions following reports of a potential blockade targeting vessels in the Strait of Hormuz. The oil price freeze and differential rates across states continue to dominate the domestic narrative.
Current Fuel Prices Across India's Major Cities
At the retail level, petrol rates in Delhi were reported at ₹94.77 per litre, while diesel remained at ₹87.67 per litre. Mumbai witnessed higher pricing, with petrol selling at ₹103.54 per litre and diesel at ₹90.03 per litre.Other key metros also showed distinct rates. Kolkata recorded petrol at ₹105.45 per litre and diesel at ₹92.02 per litre. Chennai's rates were ₹100.84 for petrol and ₹92.39 for diesel. Hyderabad recorded the highest rates, with petrol priced at ₹107.46 per litre and diesel at ₹95.7 per litre.
Global Crude Oil Dynamics and Market Signals
On the global front, Brent crude oil extended gains, trading near $97 per barrel. This rebound followed reports of attacks on Saudi energy infrastructure, which cut production capacity.However, global benchmark pricing remains complex. Despite the recent rebound, Brent is down more than 10% this week, following the ceasefire announced earlier in the week. Meanwhile, US West Texas Intermediate crude traded above $98 per barrel, indicating shifting market expectations.
State-run oil marketing companies (OMCs) also implemented targeted hikes in some segments. High-speed industrial diesel, in particular, saw an increase of Rs 28.22 per litre, a 25% hike, reaching ₹137.81 per litre.
Forces Driving Domestic Fuel Price Movements
The final retail cost of petrol and diesel is influenced by a confluence of powerful economic factors. Foremost among these is the international price of crude oil, as crude forms the primary raw material for fuel production.The second critical determinant is the rupee-dollar exchange rate, given that India imports a substantial proportion of its crude oil requirements. Furthermore, the central excise duty and varying state-level Value Added Taxes (VAT) are the primary reasons for the notable price disparities witnessed across different Indian cities.
Industry Adjustments Amid Price Controls
To mitigate mounting losses resulting from the self-imposed freeze on retail fuel prices, state-run OMCs are implementing new financial arrangements. Sources indicate that the OMCs will now pay refineries a discounted price for petrol, diesel, aviation turbine fuel (ATF), and kerosene.These measures are designed to help cover losses and stabilize the sector amid volatile global crude prices. Additionally, the OMCs revise rates for key products like ATF and LPG on the first day of every month, basing them on international benchmarks and the exchange rate.
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