Petrol and diesel prices in several Indian cities remained largely unchanged for the fourth straight day on Wednesday (March 18), continuing the recent trend of stability in retail fuel rates.
Gasoline and diesel prices are holding steady in India even as global oil markets see volatility due to geopolitical tensions in the Middle East, the effective shutdown of trade through the Strait of Hormuz and related concerns about 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.
Fuel prices for the city on March 18
The following retail rates are currently active in major cities across India:
Who is responsible for fuel prices?
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).
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.
OMCs require advance payment for delivery
Amid the supply disruption, OMCs have tightened fuel supply norms to cope with the situation. To limit offtake by retail outlets, they have suspended the practice of supplying fuel on credit.
While HPCL and BPCL started insisting on advance payments from last week, IOCL on Monday stopped its five-day revolving credit policy, Mint reported.
What Affects Fuel 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 an important role in determining petrol and diesel prices, as India imports a large portion of its oil needs from other countries. 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.
