Petrol, Diesel Prices Today: Check Fuel Rates Across Major Cities As Brent Crude Holds Near $73

Petrol and diesel prices remained unchanged across major Indian cities on June 29 even as global crude oil prices traded near $73 per barrel following signs of easing tensions between the U.S. and Iran.

Domestic fuel prices have not been revised despite fluctuations in international crude markets. Oil marketing companies (OMCs) continue to monitor global oil prices, exchange rates and other cost factors before making any changes to retail fuel prices.

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Petrol And Diesel Prices On June 29

Crude Oil Trades Near $73

International crude oil prices recovered in early trade after reports indicated that the U.S. and Iran had agreed to halt further attacks and continue diplomatic discussions. Brent crude briefly climbed to $73.39 per barrel before trimming gains, while West Texas Intermediate (WTI) crude traded close to $70 per barrel.

The rebound followed renewed military activity near the Strait of Hormuz, a key global oil shipping route. The market sentiment was lifted by reports that officials from both countries were expected to hold talks in Doha to avoid further escalation.

Under-Recoveries Narrow

According to data released by the Ministry of Petroleum and Natural Gas, OMC under-recoveries have declined significantly. Petrol under-recoveries have fallen to ₹3 per litre from ₹24 per litre recorded on April 1, an 83% reduction.

Diesel under-recoveries have also narrowed by 75%, declining to ₹27 per litre from ₹105 per litre during the same period.

Earlier in the conflict, fuel prices were revised upward four times, taking cumulative increases to about ₹7.5-₹8 per litre since the beginning of the hostilities.

What Determines Fuel Prices?

In India, the retail prices of petrol and diesel are largely linked to the international prices of crude oil given the large share of crude oil requirement being imported into the country. The movement of rupee vis-à-vis the U.S. dollar is also instrumental in determining import costs. 

Apart from this, the final retail price is determined by central excise duty, state value added tax (VAT), freight charges and dealer commission. Since the VAT rates are different for different states, fuel prices vary from one city to another even if the base price remains the same. 

With global crude prices stabilising after recent volatility, domestic fuel prices will continue to be monitored against the backdrop of global oil movements and currency trends before any revision is undertaken by OMCs.