India Maintains Steady Fuel Prices Amid Global Oil Surge
Fuel Prices Remain Unchanged in India
As global crude oil prices approach $120 per barrel due to the ongoing tensions between the US and Iran, along with disruptions in the Strait of Hormuz, India has opted to keep its retail petrol and diesel prices stable as of Monday. In Delhi, petrol is priced at Rs 94.77, while diesel costs Rs 87.67. In Mumbai, the prices are Rs 103.54 for petrol and Rs 90.03 for diesel. Recently, the government implemented a significant excise duty cut of Rs 10 per litre to support retailers selling these fuels.
This reduction in excise duty aims to ease the financial burden on consumers by ensuring a steady supply of fuel for domestic use, supported by export duties of Rs 21.50 and Rs 29.50 on diesel and aviation turbine fuel, respectively. Public sector oil companies like Indian Oil, Bharat Petroleum, and Hindustan Petroleum are currently facing losses on their products, with losses estimated at Rs 26 per litre for petrol and Rs 81.90 for diesel. The excise duty reduction helps mitigate these losses, preventing consumers from shouldering the entire burden.
While several countries across Asia, Europe, and North America have increased their fuel prices by 20-50%, India continues to maintain stable prices. A report from the Oil Ministry indicated that Indian refineries are operating at higher capacities, ensuring sufficient petrol and diesel supplies nationwide. However, some petrol stations experienced panic buying due to misinformation, leading to long queues. The ministry has urged the public to remain calm, assuring that fuel supplies are normal.
Daily deliveries of LPG refills have surpassed 55 lakh cylinders, and efforts are underway to boost the supply of piped natural gas and CNG. The situation remains dynamic, as the conflict in West Asia persists, and any further escalation could impact global oil prices, potentially affecting India as well. For the time being, consumers can find some relief as petrol and diesel prices at the pump remain unchanged amidst the global energy crisis.