Petrol And Diesel Prices Unchanged On June 30 As Brent Crude Holds Near $73

Petrol and diesel prices remained unchanged across the country on Tuesday, June 30, even as global crude oil prices stayed firm ahead of diplomatic discussions between the U.S. and Iran over the Strait of Hormuz, one of the world’s busiest oil transit routes.

Brent crude continued to trade above the $73 per barrel mark after rising 1.8% in the previous session. West Texas Intermediate (WTI) crude hovered near $70 per barrel. Oil prices remained supported after Iran indicated it wants a greater role in overseeing shipping through the Strait of Hormuz, adding fresh uncertainty ahead of discussions scheduled in Doha. Despite movements in international crude prices, retail fuel rates in India remained unchanged.

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Petrol And Diesel Prices Across Major Cities

Fuel prices have remained steady even after multiple revisions during the recent U.S.-Iran conflict. Since the start of the hostilities, petrol and diesel prices have been increased four times. The latest revision raised petrol prices by ₹2.6 per litre and diesel prices by ₹2.7 per litre. Overall, fuel prices have gone up by around ₹7.5-8 per litre during the period.

Under-Recoveries Narrow

The Ministry of Petroleum and Natural Gas recently reported a sharp decline in under-recoveries faced by oil marketing companies. Petrol under-recoveries have reduced to ₹3 a litre from ₹24 a litre on April 1, down 83%.

Diesel under-recoveries have also improved, falling to ₹27 per litre from ₹105 per litre over the same period, representing a 75% decline.

Crude Oil Remains In Focus

Global oil markets are keen on what is happening in Doha, with discussions involving the issue of navigation of vessels through the Strait of Hormuz set to happen there.

While the U.S. insists that talks have been scheduled, Iran maintains that talks will only involve a technical team and not direct talks, thus suggesting that both parties still differ. The Strait of Hormuz is an important shipping lane for crude oil in the world and any disruptions will be critical to the oil market.

What Factors Decide Fuel Prices in India?

Fuel prices in the country are determined mainly by international crude oil prices because India imports a substantial portion of its crude oil needs. Movement of currency will also influence prices because of the rupee-dollar exchange rate.

Apart from global factors, central excise duty, state-level value-added tax (VAT), freight charges and dealer commissions contribute to the final retail price. Since VAT rates differ across states, fuel prices continue to vary from one city to another.