Petrol and diesel prices in India remained steady on March 12 despite a sharp rise in global oil prices after two oil tankers were attacked in Iraqi waters. The ongoing war between the US, Israel and Iran in the Middle East has sent oil prices soaring.
Amid continued shortage of commercial liquefied petroleum gas (LPG) in several parts of India due to conflict in the Middle East, petrol and diesel prices in India remained largely unchanged on Thursday. While Hyderabad, Kolkata and Patna continue to witness some of the highest petrol prices, Delhi, Ahmedabad and Lucknow remain relatively cheaper markets, mainly due to differences in state taxes, according to the latest price notification issued by state-run oil marketing companies.
The increase in LPG prices has hit several sectors, especially the food and beverage (F&B) industry. On March 12, the rupee depreciated against the dollar as it weakened 31 paise to 92.32 against the US dollar in early trade, under pressure from foreign institutional investors (FIIs) and rising global oil prices.
“Escalation of attacks around the Strait of Hormuz and attacks on neighboring countries pushed oil prices higher and risk-on sentiment supported the dollar as a safe-haven asset, while gold prices along with silver also fell,” Finrex Treasury Advisors LLP chief financial officer and managing director Anil Kumar Bhansali told PTI.
He added: “The Reserve Bank protected 92.00 levels yesterday (Wednesday) and may protect 92.30 levels today, but the rupee trend still seems weak,” he added.
Let’s take a look at the prices of petrol and diesel in major cities of India.
Rising trend of world oil prices
A potential global supply shortage and heightened geopolitical risk sent Brent crude – the global oil benchmark – up as much as 9.94% to $101.12 a barrel in futures, while West Texas Intermediate (WTI) surged near $94.
Supply concerns were heightened and reflected in prices after Iraq’s state oil trader, the State Oil Marketing Organization (SOMO), confirmed that two vessels had been attacked in a loading zone near Iraqi ports. The targets were the two vessels Marshall Islands-flagged Safesea Vishnu and Malta-flagged Zefyros. Iraqi authorities halted operations at the country’s oil terminals following the attack.
