Petrol, Diesel Prices on August 7: Fuel Rates Stay Unchanged Across Major Cities

Petrol and diesel prices remained steady across major Indian cities on Thursday despite a rise in the global crude price. State-owned oil marketing companies did not revise retail fuel rates, keeping pump prices unchanged in cities including Delhi, Mumbai, Kolkata, Chennai, Hyderabad and Bengaluru.

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The latest movement in the crude price comes as Brent crude futures edged higher, trading at $83.67 per barrel, up 0.16% during the session. In the previous trading session, Brent settled 3.8% higher at $82.49 per barrel, while U.S. West Texas Intermediate (WTI) crude closed 2.8% higher at $77.29 per barrel. The increase followed reports that Iranian state media published a draft proposal outlining tighter conditions for vessel movement through the Strait of Hormuz, raising concerns over global energy supply.

Petrol and Diesel Prices on August 7

Rising Crude Price Remains in Focus

The movement in the global crude price continues to be closely monitored because India imports more than 85% of its crude oil requirement. A sustained increase in international oil prices can raise the country’s import costs and add pressure to inflation.

Although retail fuel prices have remained unchanged on August 7, fluctuations in the crude price are an important factor in determining future revisions. Oil marketing companies periodically review domestic rates after considering multiple cost components rather than relying solely on daily changes in international benchmarks.

What Determines Fuel Prices in India?

Petrol and diesel prices in retail are affected by a number of internal and external factors. In addition to the global price of crude oil, prices of fuel are affected by the foreign exchange rate of rupee vis-à-vis the dollar, cost of processing, cost of transportation, and central and state taxes.

Tax structures vary from state to state and thus create a difference in fuel prices between cities. Shipping costs and local taxes also play a part in this respect.

In view of the fact that global oil markets are becoming sensitive to geopolitical happenings, prices of fuels in the domestic market will continue to be dependent on trends in the global price of crude oil for the next few weeks.