Petrol and diesel rates in India remained largely unchanged on Friday, 3 July, despite a drop in Brent crude prices linked to reduced geopolitical tensions. Although global oil prices reached a four-month low, state-run oil marketing companies are not expected to lower domestic fuel costs soon. Union Petroleum Minister Hardeep Singh Puri noted that refiners continue to process more expensive crude bought during the height of the West Asia crisis.
On Wednesday, companies reduced aviation turbine fuel prices by around ₹5 per litre and cut commercial 19-kg LPG cylinder rates by ₹183.50, the first such decrease in nearly four months. The 5-kg free trade LPG cylinder price also fell by ₹13 to ₹808.50. Nayara Energy became the first private retailer in over two years to lower petrol and diesel rates.
The previous adjustment to petrol and diesel occurred in the second half of May, when rates rose by about ₹7.50 per litre. Retailers absorbed much of the higher costs during the period of oil price volatility, resulting in cumulative losses of ₹74,781 crore on petrol, diesel and subsidised LPG.
Major oil marketing companies are still recovering from processing costlier crude acquired during the conflict. Addressing questions on possible price reductions, Puri stated that companies hold stocks purchased at higher prices with elevated insurance and freight costs. He added that sustained low crude prices over the next two to three months would make a cut a valid consideration.
City-wise prices on 3 July showed New Delhi at ₹102.12 for petrol and ₹95.20 for diesel, while Mumbai listed ₹111.21 and ₹97.83 respectively. Brent crude traded above $71 per barrel amid rising tanker traffic through the Strait of Hormuz and signs of oversupply.
