Petrol and diesel prices in several Indian cities remained largely unchanged on Monday, March 16, continuing the recent trend of stability in retail fuel rates.
The steady prices come even as global oil markets have seen volatility in recent weeks, driven by geopolitical tensions linked to ongoing conflict in the Middle East and fears of potential supply disruptions.
The conflict involving the United States, Israel and Iran has entered its third week with no clear signs of de-escalation. It began on February 28, when coordinated US-Israeli strikes targeted Iran, prompting Tehran to retaliate by attacking US military bases in the Middle East.
To keep domestic fuel prices in line with international oil prices and exchange rate movements, Oil Marketing Companies (OMCs) revise petrol and diesel prices every day at 6 am.
The three main OMCs responsible for fuel pricing and distribution in India are Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL).
Check the latest fuel prices in your city
CityGasoline ( ₹ /L)Diesel ( ₹ /L)Delhi ₹94.77 ₹87.67 Bombay ₹103.54 ₹90.03 Calcutta ₹105.45 ₹92.02 Chennai ₹100.80 ₹92.39 Hyderabad ₹107.50 ₹95.70 Bengaluru ₹102.99 ₹91.06 Luck ₹94.69 ₹87.81 Ahmedabad ₹94.49 ₹90.17
On 13 March, Union Petroleum and Natural Gas Minister Hardeep Singh Puri assured Parliament that the country’s energy supplies remained secure even as global markets were rocked by major disruptions caused by the ongoing conflict in the Middle East and the subsequent closure of the Strait of Hormuz.
In his statement in the Lok Sabha, Puri said the government has taken several measures to protect India’s energy security and ensure uninterrupted availability of petroleum products, cooking gas and natural gas.
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However, according to multiple reports, several states are facing a shortage of LPG cylinders due to the effective shutdown of maritime traffic through the Strait of Hormuz. While the government has prioritized LPG supply to households and critical sectors such as healthcare, other businesses such as restaurants and hotels that rely on commercial gas for cooking have been hit the hardest.
On Saturday, March 14, the government resumed the distribution of commercial LPG cylinders in all states and Union Territories.
What Affects Petrol and Diesel Prices in India?
Retail fuel prices in the country are influenced by several factors, the most significant of which is the price of crude oil on international markets, which is the primary raw material for the production of gasoline and diesel.
The rupee to dollar exchange rate also plays a vital role in determining the prices of petrol and diesel as India imports a large part of its oil needs from abroad. A weaker rupee can increase the cost of imported oil, which in turn can push up fuel prices.
Another important factor is the taxes imposed by the central and state governments, which form a major component of petrol and diesel prices. This is why fuel prices vary from state to state. Transportation costs and the dynamics of supply and demand also affect the final price consumers pay at the pump.
