Petrol and diesel prices in major Indian cities were little changed on Monday, despite the government’s move to cut excise duty on petrol by ₹3 liter and diesel completely exempt from tax.
The move was aimed at providing relief to state-owned oil marketing companies (OMCs) facing financial difficulties amid rising global oil prices due to the effective closure of the Strait of Hormuz, which is critical to global energy trade.
Since the US and Israel launched joint strikes against Iran on February 28, benchmark Brent crude has risen more than 50%, with prices briefly touching $116 on Monday.
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Although Iran has granted exemptions to some “friendly” countries – including India, China, Russia and Pakistan – the international market remains volatile, especially given the uncertainty over the direction and duration of the ongoing war in the Middle East.
While US President Donald Trump has called for productive talks with Iran, Tehran has publicly rejected such claims, including a 15-point plan Washington sent through intermediaries.
In a related development, Trump on Sunday threatened to “take the oil” from Iran, suggesting the US was not ruling out seizing Tehran’s critical oil infrastructure, including the export hub of Kharg Island.
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Industrial diesel, premium gasoline have become more expensive
While retail fuel prices remain stable, state-run OMCs hiked the price of industrial diesel and premium petrol earlier this month due to mounting pressure on margins.
The price of industrial diesel, which is sold in bulk to commercial facilities, has increased ₹21.92 liters, which is a significant increase of 25%. Meanwhile, the price of premium gasoline has increased by ₹2 liters.
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Regular prices of gasoline and diesel
India’s three major OMCs – Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) – revise fuel prices every day at 6 am to ensure that the rates are in line with international oil prices and exchange rate movements.
With prices rising, OMCs are using the latest tax breaks to stabilize their own operations instead of cutting prices for consumers. The prices of ordinary gasoline and diesel fuel, which make up a large part of daily sales at the pumps, thus remain unchanged.
Below are the petrol and diesel prices in major Indian cities on Monday, March 30.
CityGasoline ( ₹ /L)Diesel ( ₹ /L)Delhi ₹94.77 ₹87.67 Bombay ₹103.54 ₹90.03 Calcutta ₹105.45 ₹92.02 Chennai ₹100.84 ₹92.39 Hyderabad ₹107.46 ₹95.70 Bengaluru ₹102.96 ₹90.99 Lucknow ₹94.69 ₹87.81 Ahmedabad ₹94.49 ₹90.17Read also | Dubai and Abu Dhabi are at risk if the UAE enters the war, says top US economist Jeffrey Sachs
Factors Affecting Petrol and Diesel Prices in India
Petrol and diesel prices in India are affected by several factors, the most significant of which is the price of crude oil in the global markets.
The rupee-to-dollar exchange rate also plays an important role in determining the price of petrol and diesel, given that India imports a large portion of its oil needs. Simply put, a weaker rupee can increase the cost of imported oil, thereby increasing domestic fuel prices, or vice versa.
The third factor is taxes imposed by the Center and state governments, which form a major component of petrol and diesel prices and are responsible for fuel price fluctuations between states.
Final prices of petrol and diesel in India are also affected by supply and demand dynamics and logistics costs.
