Petrol and Diesel Prices Today: Fuel prices in Delhi, Mumbai, Bengaluru, Kolkata and other cities, crude oil prices coming down | Today’s news

Gasoline and diesel prices today: Fuel prices in India were flat on Friday, July 3, with little change even as Brent crude fell on easing geopolitical tensions. Global oil prices may have fallen to a four-month low, but state-owned oil marketing companies (OMCs) are unlikely to cut domestic fuel prices anytime soon. According to Union Petroleum and Natural Gas Minister Hardeep Singh Puri, domestic retail refineries are still processing more expensive crude bought during the height of the crisis in West Asia.

On Wednesday, OMC cut ATF prices by approx ₹5 per liter and reduced commercial LPG rates by 19 kg ₹183.50 per cylinder in the monthly revision, marking the first reduction in nearly 4 months. At the same time, the rate of 5 kg bottles at a discounted price or free trade on LPG (FTL) was also reduced. ₹13 to ₹808.50 per 5kg cylinder. Nayara Energy, India’s largest private retailer, also announced rate cuts in petrol and diesel prices. The price adjustment made the Rosneft-backed company the first retailer in more than two years to cut pump rates.

The last revision of gasoline and diesel prices was carried out in the second half of May, when rates were increased by approx ₹7.50 per liter. During a period of oil price volatility due to geopolitical tensions, fuel retailers absorbed a significant portion of higher oil prices and suffered cumulative losses ₹74,781 crore for the sale of petrol, diesel and subsidized LPG.

OMCs including Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) are still recovering from processing more expensive crude bought during the conflict.

Responding to questions on whether there will be a cut in fuel prices, Puri said, “If the question is when will you cut the prices? Well, they (OMCs) still have stocks that were bought at a higher price with higher insurance, higher freight rates. If it (low oil prices) continues for another two, three months, then that would be a legitimate question,” at a press conference on Thursday.

Brent Oil Price Today: Crude falls as more tankers pass through Strait of Hormuz

The downward pressure on oil prices can be attributed to an increase in oil tanker traffic through the Strait of Hormuz, which has contributed to a surge in short-term supplies.

Brent traded above $71 a barrel as talks between the US and Iran continue toward a lasting deal. With oil exports returning to pre-war levels, the global benchmark is in contango, signaling oversupply. Brent is on track for a fourth weekly loss – which would be the longest streak since August 2024 – after positive talks in Qatar on a 14-point memorandum of understanding between Washington and Tehran, Bloomberg reported.

Citigroup Inc analysts, including Francesco Martoccio and Eric Lee, said in a July 2 note: “Fundamentals are quickly reasserting themselves as the Hormuz disruption fades” and “traffic flows normalize.”

“The US-Iran process remains fragile and disputes over Hormuz administration and transit fees persist,” Bloomberg quoted Citigroup analysts as saying.