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New Delhi: Once again the effect of increased military tension in the Middle East is becoming visible on the global oil market. After the latest developments between America and Iran, a rise in the prices of crude oil was recorded in the international market.
The increasing tension between America and Iran has increased the concern of investors. Both Brent and WTI crude prices saw a rise due to fears that oil supplies from the Strait of Hormuz would be affected. This sea route is among the most important oil supply routes in the world.
On the other hand, OPEC countries have agreed to a plan to increase oil production from August. The organisation believes that the global energy market is gradually stabilising. Due to increase in production, supply may strengthen in the coming time, which may put some pressure on prices.
No major change was seen in the prices of petrol and diesel in the major metros of the country on Monday.
Petrol prices
Delhi: Rs 102.12 per liter
Mumbai: Rs 111.12 per liter
Kolkata: Rs 113.43 per liter
Chennai: Rs 107.75 per liter
Hyderabad: Rs 115.69 per liter
Bengaluru: Rs 110.93 per liter
Diesel prices
Delhi: Rs 95.20 per liter
Mumbai: Rs 97.78 per liter
Kolkata: Rs 99.78 per liter
Chennai: Rs 99.57 per liter
Hyderabad: Rs103.82 per liter
Bengaluru: Rs 98.79 per liter
Fuel prices in India are not determined solely by international crude oil prices. Central and state government taxes, refining costs, transportation expenses, dealer commission and the rupee-dollar exchange rate also affect prices. Therefore, sometimes despite fluctuations in the global market, there is no immediate change in domestic prices.
Experts say that if tension in the Middle East increases further and oil supply is affected, crude oil may become more expensive in the international market. However, the retail prices of petrol and diesel in India are decided by oil companies keeping in mind the market conditions and other economic factors.
If crude oil prices remain high for a long time, it may impact transportation costs, inflation and prices of many essential commodities. At present, retail prices of petrol and diesel remain stable in the country, but the market is keeping an eye on global developments.