Amid continued volatility in global oil prices due to the conflict in the Middle East, retail fuel prices in India remained unchanged on Saturday, March 21, extending the trend of stability seen over the past few weeks.
The war involving the United States, Israel and Iran enters its fourth week. It began on February 28, when coordinated US-Israeli strikes on Iran were launched, prompting Tehran to retaliate with strikes through US military bases in the Middle East.
Recently, global energy markets have been rocked by rising geopolitical tensions in the Middle East, which pushed oil above $100 a barrel this week. As a result, India launched a calibrated transmission shock, selectively raising prices of some fuels while leaving retail gasoline and diesel largely unchanged.
OMCs increase prices of industrial diesel and premium petrol
The state-run oil marketing companies (OMCs) have increased diesel prices by about 100%. ₹22 per liter and premium gasoline prices by approx ₹2 per litre, Mint reported earlier. However, the prices of fuel for regular transport and premium diesel remained unchanged.
The price of premium petrol has been hiked in Delhi ₹99.89 per litre ₹101.89, while the price of industrial diesel, which is bought in bulk, was increased to ₹109.59 per litre.
The rise in utility rates follows domestic cooking gas rising by roughly a little more last month ₹60 and commercial LPG by approx ₹115.
Fuel prices for the city on March 21
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).
Retail fuel prices in the country are affected by several factors, including the price of crude oil in international markets, the rupee to dollar exchange rate, and taxes imposed by the central and state governments.
Petrol and diesel prices are revised every day at 6:00 AM. This practice helps OMCs keep domestic fuel prices in line with international oil prices and exchange rates.
US Considers Lifting Sanctions on Iranian Oil?
The United States signaled on Friday that it may ease sanctions on Iranian oil, and global powers backed efforts to secure shipping through the Strait of Hormuz. As a result, international oil prices fell by more than 2% on the same day.
The moves signal early attempts to stabilize supplies after crude jumped to multi-month highs amid escalating tensions in West Asia.
US Treasury Secretary Scott Bessent said in an interview on Fox Business Network on Thursday that Washington may ease restrictions on Iranian oil already at sea to cool prices.
Oil prices have been volatile since the war began on February 28, with Brent briefly approaching $119 a barrel on Thursday.
