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Petrol and diesel prices across India remain largely unchanged on April 5, despite global crude oil volatility. Major cities continue to see stable rates, which offer temporary relief to consumers. There are many factors that influence the prices of petrol and diesel in India, with the most significant being the price of crude oil on international markets.
Earlier this week, private major Shell India hiked petrol prices by a steep Rs. 7.41 per litre and diesel by Rs. 25.01 per litre to offset surging crude costs.
The state-run Indian Oil Corporation Ltd (IOCL) recently hiked the price of its premium XP100 petrol by Rs. 11 per litre, pushing it past the Rs. 160 mark. The premium diesel variant XtraGreen was also increased to Rs. 92.99 per litre.
Despite the massive hikes by private players and the changes in premium fuel rates, the prices of regular petrol and diesel at pumps saw only marginal, mixed variations on Sunday.
The war between the US, Israel, and Iran has stretched on for over a month, despite claims of the conflict winding down. It remains a major driver of global economic anxiety.
Earlier this week, US President Donald Trump stated that the operation's "core strategic objectives are nearing completion," citing the degradation of Iran's missiles, drones, and naval capabilities. Trump asserted that the US will complete its military mission "very shortly," but warned that American forces will hit Iran "extremely hard" over the next two to three weeks.
Also Read: Rising Gas Prices Squeeze US Households; India Hikes Premium Petrol on Supply Fears
Oil markets remain on edge. Following Trump's remarks, crude oil futures spiked more than 5%, reversing earlier market drops. Trump also reportedly said he could end US operations without reopening the Strait of Hormuz.
Against this backdrop, private fuel retailers in India have started significantly raising prices, while government oil marketing companies (OMCs) are holding the line.
The Centre last month cut excise duty on regular petrol by Rs. 3 a litre and exempted regular diesel entirely from the levy. This has helped government oil companies maintain the base fuel rates despite immense pressure on their margins amid rising global crude oil prices.
The rupee-dollar exchange rate also plays a crucial role in determining the prices of petrol and diesel. Another factor is the taxes imposed by the Centre and state governments, which form a major component of petrol and diesel prices. This is responsible for variations in fuel prices across states.
