Brent crude oil prices climbed above the $100-per-barrel mark on Friday, extending a sharp rally driven by escalating geopolitical tensions in the Middle East. The surge in global crude prices has renewed concerns over fuel costs in India, which imports more than 85% of its crude oil requirements. Brent crude was last trading at $100.18 per barrel after briefly crossing the key psychological threshold, while US West Texas Intermediate (WTI) crude settled at $92.19 per barrel. The rally follows reports of attacks on tankers in the Red Sea and US President Donald Trump's warning of a "massive attack" against Iran, raising fears of disruptions to global energy supplies.
The sustained rise in crude oil prices comes at a time when domestic fuel rates have already seen several upward revisions in recent months. Higher international crude prices typically increase the cost of importing oil into India, putting pressure on retail petrol and diesel prices and potentially adding to inflationary concerns. Market analysts are closely watching developments in the Middle East, as any further escalation could keep oil prices elevated and impact transportation, manufacturing and other sectors dependent on fuel.
According to the latest rates for July 24, petrol is priced at Rs 102.12 per litre in Delhi, Rs 111.21 per litre in Mumbai, Rs 108.01 per litre in Chennai, Rs 113.51 per litre in Kolkata, Rs 115.73 per litre in Hyderabad and Rs 110.89 per litre in Bengaluru. Diesel prices stand at Rs 95.20 per litre in Delhi, Rs 97.83 per litre in Mumbai, Rs 99.66 per litre in Chennai, Rs 99.82 per litre in Kolkata, Rs 103.82 per litre in Hyderabad and Rs 98.80 per litre in Bengaluru. Fuel prices vary across states due to differences in local taxes and levies imposed by state governments.
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Retail fuel prices in India are influenced by several factors beyond international crude oil rates. While global crude prices remain the primary driver, petrol and diesel prices also depend on the rupee's exchange rate against the US dollar, refining costs, freight and distribution expenses, dealer commissions and central as well as state taxes. Oil marketing companies review fuel prices regularly, taking these variables into account before making any revisions.
With Brent crude trading at multi-month highs and oil prices gaining more than 30% this month, consumers and policymakers alike will be monitoring global developments closely. Any prolonged disruption to oil supplies or further geopolitical tensions could push crude prices even higher, increasing import costs for India and raising the likelihood of further adjustments in domestic fuel prices. For now, motorists are advised to check the latest city-wise fuel rates before refuelling, as retail prices may continue to fluctuate in line with changes in global energy markets.
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