Petrol and Diesel Prices Remain Unchanged as Global Crude Oil Falls 5%

New Delhi: Despite the sharp fall in crude oil prices in the international market, retail prices of petrol and diesel in India remained stable on Monday. There was relief in the global market after the current pause in attacks between America and Iran, due to which the price of Brent crude fell by about 5 per cent. However, this has not yet affected the fuel prices available to Indian consumers.

Why did the prices of crude oil fall?

After nearly two weeks of tension in the Middle East, the market got relief from the news of military action being stopped between America and Iran for the time being. After this, the price of Brent crude in the international market fell by about 5 percent to around 92 dollars per barrel. At the same time, American West Texas Intermediate (WTI) crude also fell by more than 5 percent and was seen trading around 85 dollars  per barrel. Investors hope that if diplomatic efforts are successful, the pressure on oil supply may ease.

Why haven't the prices of petrol and diesel changed in India?

Retail prices of petrol and diesel in India are decided by government oil marketing companies. These companies last revised fuel prices on May 25. After this there were many fluctuations in the international market, but there was no change in the prices at the domestic level. This is the reason why the effect of the current decline in crude oil is not visible at petrol pumps at present.

What are the latest fuel rates in major cities?

In Delhi, petrol is being sold at Rs 102.12 and diesel at Rs 95.20 per litre. Petrol in Mumbai is Rs 112.40 and diesel is Rs 99.03 per liter. In Kolkata, petrol is priced at Rs 113.47 and diesel at Rs 99.82, while in Chennai petrol is stable at Rs 107.87 and diesel at Rs 99.65 per litre. Similarly, there has been no change in prices in other cities including Jaipur, Patna, Hyderabad, Lucknow, Chandigarh and Bengaluru.

How much impact does the situation in the Middle East have on the oil market?

Experts say that in recent times the increased tension between America, Iran and regional groups has affected the global oil market. There was concern about oil supplies due to increased risks on vital sea routes such as the Strait of Hormuz and the Red Sea. Although at present there is relief in the market due to reduction in tension, if the situation worsens again, the prices of crude oil may rise again.

What could be the situation ahead?

Experts who monitor the energy market believe that in the coming days, oil prices will completely depend on the developments in the Middle East and global diplomatic efforts. If peace continues in the region, pressure on crude oil prices may remain. At the same time, the decision on any change in the prices of petrol and diesel in India will be taken by the oil marketing companies keeping in mind the international market, exchange rate and other economic factors.