Petrol and Diesel Prices Unchanged in India Despite Global Crude Oil Surge to $120/Barrel

Despite global crude oil prices climbing close to $120 per barrel due to the ongoing US-Iran conflict and disruptions in the Strait of Hormuz, retail petrol and diesel prices in India remained unchanged on Monday. Continuing with earlier prices, petrol in Delhi remains at Rs 94.77 while diesel is Rs 87.67. In Mumbai: Rs 103.54 for petrol, Rs 90.03 for diesel. The government announced a significant reduction last week of Rs 10 per litre as an excise duty relief measure to assist retailers selling both types of fuels.The government's decreased cost of diesel and aviation turbine fuel will alleviate the burden on consumers by ensuring enough fuel for domestic use through export duties of Rs 21.50 and Rs 29.50 respectively that will go to help provide

options for consumers in other countries.Indian Oil, Bharat Petroleum, and Hindustan Petroleum are some examples of how public sector oil companies are currently operating at a loss on their products. The amount they are currently losing based on today’s rates would amount to Rs 26 and Rs 81.90 per litre on petrol and diesel. The excise duty lessens part of the amount of loss allowing consumers to not bear the total amount of the losses at this time.A number of countries in Asia, Europe and North America have already raised their fuel prices 20-50%, but India is still maintaining stable fuel prices at this time. According to a report from the Oil Ministry on Sunday, Indian refineries are functioning at a higher rate and there is ample supply of petrol and diesel throughout the country; however, there were instances of panic buying at certain petrol stations due to misinformation which caused long lines at some locations. The ministry has appealed to people not to panic and assured that supplies are normal. Daily LPG refill deliveries have crossed 55 lakh cylinders, and efforts are on to increase supply of piped natural gas and CNG. The situation remains fluid as the conflict in West Asia continues. Any further escalation could put more pressure on global oil prices, which may eventually affect India too.For now, petrol and diesel prices at the pump remain steady, giving some relief to consumers amid the global energy crisis.