Petrol and Diesel Prices Stay Stable On April 10 Amidst Rebound In Global Crude Oil Price

The prices of petrol and diesel stayed the same in India on April 10, even as the global crude oil prices saw an upturn amidst speculation regarding the U.S.-Iran ceasefire agreement.

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Petrol And Diesel Rates In Key Cities

Fuel prices are fixed on a daily basis by oil marketing companies run by the government, such as Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation.

Global Movement of Crude Oil

The global prices of crude oil have risen for two sessions in a row on April 10 after experiencing a sharp drop during the current week. Brent crude traded in the range of $96.34–$96.45 per barrel, while West Texas Intermediate (WTI) fluctuated between $97.60 and $97.96 per barrel.

According to Reuters, crude oil prices had fallen sharply by up to 16.5% on April 8, marking the steepest single-day drop since 2020, after the announcement of a ceasefire between the U.S. and Iran. However, in the next two trading days, the prices increased by 3% to 8%, due to apprehensions regarding the durability of the ceasefire as well as the persistent interruptions at the Strait of Hormuz.

Domestic Fuel Pricing Mechanism

Fuel prices in India have been stable despite any volatility in the international crude oil market, owing to the method employed by oil marketing firms to set fuel prices. The changes made in the prices of fuels take place based on a 15-day average international price of crude oil and the dollar-rupee exchange rate.

Also, central excise duty and VAT play important roles in shaping fuel prices in various Indian cities.

Other Fuel Prices

The price of domestic LPG (14.2 kg) is ₹913.00 for one cylinder in Delhi, whereas the cost of commercial LPG (19 kg) is unchanged at ₹2,078.50 for one cylinder after a recent increase. Prices of ATF are also high due to past price hikes introduced at the beginning of April.

Although there have been extreme fluctuations in international prices, the lack of adjustment shows that domestic fuel prices are still well protected.