Petrol And Diesel Prices Stay Unchanged On June 23; Brent Crude Holds Below $80

Petrol and diesel prices across major Indian cities were kept unchanged on Tuesday, June 23, despite a decline in international oil prices after diplomatic progress between the U.S. and Iran eased concerns over crude supply disruptions.

Retail fuel rates have remained steady after four revisions made since the start of the U.S.-Iran conflict. The latest increase, announced last month, raised petrol prices by ₹2.6 per litre and diesel prices by ₹2.7 per litre. Since the beginning of the conflict, fuel prices have gone up by about ₹7.5-8 per litre.

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Fuel Prices Across Major Cities

In Delhi, petrol continued to retail at ₹102.12 per litre, while diesel remained at ₹95.20 per litre.

Under-Recoveries Narrow Further

According to the latest data released by the Ministry of Petroleum and Natural Gas, under-recoveries faced by oil marketing companies have reduced sharply.

Petrol under-recoveries have fallen 83% to ₹3 per litre from ₹24 per litre recorded on April 1. For diesel, under-recoveries have declined 75% to ₹27 per litre from ₹105 per litre during the same period.

The improvement comes as international crude prices have retreated from recent highs, reducing pressure on refining and marketing margins.

Crude Oil Prices Ease

Crude oil prices steadied on Tuesday after witnessing their biggest single-day drop in nearly a week. Brent crude traded near $78 per barrel after falling more than 3% in the previous session, while West Texas Intermediate crude hovered above $74 per barrel.

The decline followed the U.S. administration’s decision to grant a 60-day waiver permitting certain sales of Iranian oil and petroleum products. Washington described the latest discussions held in Switzerland as productive, raising expectations that additional crude supplies could enter the market.

The waiver allows a wider group of buyers, including U.S. refiners, to purchase Iranian oil, although geopolitical risks continue to remain a factor for market participants.

Factors Influencing Fuel Prices

Fuel prices at the retail level in India depend on various factors. The international price of crude is still the most important factor, since India has to import a significant quantity of its crude requirement.

The value of the rupee vis-à-vis the dollar is another factor that affects the cost of imports. Furthermore, the central excise duty and value-added tax in the respective states make the prices different in various cities.