Petrol and Diesel Prices Unchanged on July 18 Across Major Cities

State-run oil marketing companies have kept retail petrol and diesel prices unchanged across India on Friday despite a sharp surge in global crude oil prices driven by escalating geopolitical tensions in the Middle East. International benchmark Brent crude settled at $88.10 per barrel, while West Texas Intermediate (WTI) crude closed at $82.49 per barrel, marking their highest weekly gains in more than a month. The rally has been fuelled by renewed military tensions involving the United States and Iran, raising concerns over possible disruptions to global oil supplies through the Strait of Hormuz and shipping routes in the Red Sea.

Despite the increase in international crude prices, consumers across major Indian cities continue to pay the same rates at fuel stations. Petrol is priced at Rs 102.12 per litre in Delhi, Rs 111.21 in Mumbai, Rs 108.01 in Chennai, Rs 113.51 in Kolkata, Rs 110.89 in Bengaluru and Rs 115.73 in Hyderabad. Diesel prices remain at Rs 95.20 per litre in Delhi, Rs 97.83 in Mumbai, Rs 99.66 in Chennai, Rs 99.82 in Kolkata, Rs 98.80 in Bengaluru and Rs 103.82 in Hyderabad. Retail fuel prices have remained unchanged since the latest revision in late May.

The government has, however, revised windfall taxes on petroleum exports in response to the recent recovery in crude oil prices. Effective July 16, the export duty on diesel has been increased from Rs 8.5 per litre to Rs 15.5 per litre, while the levy on aviation turbine fuel (ATF) exports has been raised from Rs 7.5 per litre to Rs 14.5 per litre. In contrast, the export duty on petrol has been reduced from Rs 4 per litre to Rs 2.5 per litre, reflecting adjustments in line with prevailing market conditions.

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Oil Minister Hardeep Singh Puri has indicated that an immediate reduction in retail fuel prices is unlikely despite the government's periodic review of fuel duties. Officials continue to monitor developments in global energy markets, particularly as geopolitical uncertainties remain elevated. Rising crude prices typically increase the cost of imported oil, but domestic pricing decisions are influenced by a wider set of economic factors rather than international benchmarks alone.

Apart from global crude prices, retail fuel rates in India are determined by several domestic components, including the rupee's exchange rate against the US dollar, refinery processing costs, freight expenses, dealer commissions and taxes imposed by both the central and state governments. As a result, fluctuations in international oil prices do not always translate into immediate increases or decreases in petrol and diesel prices at fuel stations.

Market participants will continue to monitor geopolitical developments in West Asia and their impact on global crude supply chains over the coming weeks. Any prolonged disruption to international oil shipments could place additional pressure on energy prices worldwide. For now, however, Indian consumers continue to see stable fuel prices, even as global oil markets remain volatile amid ongoing geopolitical uncertainty.

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