Fuel prices, which had surged amid supply fears triggered by the US-Iran war, remain unchanged on Tuesday, June 23, even as global oil markets show signs of cooling following a diplomatic breakthrough between Washington and Tehran.
Fuel prices, which had surged amid supply fears triggered by the US-Iran war, remain unchanged on Tuesday, June 23, even as global oil markets show signs of cooling following a diplomatic breakthrough between Washington and Tehran. The United States has issued a 60-day waiver permitting certain sales of Iranian oil and petroleum products, citing what it described as "productive talks" between the two sides in Switzerland. The move has sparked optimism that the conflict could be nearing an end and that additional crude supplies may soon flow back into global markets.
As geopolitical tensions ease, Brent crude prices have retreated sharply, erasing most of the war-related premium that had driven oil prices higher over recent weeks. Despite the decline in crude costs, consumers are yet to see any relief at the fuel pump.
Since the outbreak of the US-Iran war, petrol and diesel prices have been increased four times. The latest hike, announced last month, raised petrol prices by Rs 2.60 per litre and diesel prices by Rs 2.70 per litre. Overall, fuel rates have climbed by nearly Rs 7.5-8 per litre since the conflict began.
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Meanwhile, losses incurred by Oil Marketing Companies (OMCs) have narrowed significantly. According to the latest figures released by the Ministry of Petroleum and Natural Gas on Monday, petrol under-recoveries have plunged 83%, falling to Rs 3 per litre from Rs 24 per litre recorded on April 1.
Diesel under-recoveries have also declined sharply, dropping 75% to Rs 27 per litre from Rs 105 per litre.
In Delhi, petrol continues to retail at Rs 102.12 per litre, while diesel is priced at Rs 95.20 per litre as of June 23.
Petrol, Diesel Prices Across Major Indian Cities
| City | Petrol (Rs/per litre) | Diesel (Rs/per litre) |
| New Delhi | Rs 102.12 | Rs 95.20 |
| Mumbai | Rs 111.21 | Rs 97.83 |
| Chennai | Rs 108.01 | Rs 99.66 |
| Kolkata | Rs 113.51 | Rs 99.82 |
| Hyderabad | Rs 115.73 | Rs 103.82 |
| Bengaluru | Rs 110.89 | Rs 98.80 |
Global Crude Prices Stabilise After Sharp Sell-Off
Oil prices steadied on Tuesday after suffering their steepest decline in nearly a week, as progress in US-Iran peace negotiations boosted hopes of increased crude supplies entering the market.
Brent crude traded near $78 per barrel after tumbling more than 3% in the previous session, while West Texas Intermediate remained above $74 per barrel.
The market reaction followed Washington's decision to grant a 60-day waiver allowing selected transactions involving Iranian oil and petroleum products. The measure is expected to provide Tehran with a crucial economic boost while potentially reopening avenues for Iranian crude exports to international buyers.
The waiver permits a broad range of purchasers, including US refiners, to buy and pay for Iranian oil. However, some traders remain cautious, mindful of lingering geopolitical uncertainties that could still disrupt energy markets.
What Determines Petrol and Diesel Prices?
Fuel prices in India are influenced by multiple factors, with global crude oil prices playing the most critical role since crude serves as the primary raw material for petrol and diesel production.
The rupee-dollar exchange rate is another major factor, given India's heavy reliance on imported crude oil. Any fluctuation in the currency can directly impact fuel import costs.
Taxes also significantly shape retail fuel prices. Central excise duty and state-level Value Added Tax (VAT) vary across regions, leading to differences in petrol and diesel rates from one city to another.
