Price freeze on petrol and diesel in India likely to be extended for few more days, check today’s rates

After international oil prices surged following the announcement of significant OPEC production cutbacks, the petrol and diesel price freeze is likely to be extended in India for a few more days.

The development follows an agreement by some of the main oil-producing nations to reduce their output by two million barrels per day in order to boost the recovery of oil prices, which had fallen to levels seen before the Ukraine War.

It is poor news for India, too, as recent drops in oil prices have allowed it to reduce import costs and reduce losses state-owned fuel dealers were experiencing from selling gasoline and diesel.

Prior to OPEC's decision, oil corporations were experiencing significant losses on diesel, which had peaked at roughly Rs 30 per litre, but were now only losing a modest amount on petrol.

According to industry experts, however, the increase in crude oil costs and the rupee's depreciation against the US dollar will result in wider losses on diesel and declining margins on petrol.

It should be emphasised that India imports 85% of its oil requirements, and domestic prices are directly influenced by global oil prices.

To help the government control runaway inflation, some state-owned fuel retailers, including Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL), have changed the retail selling price of petrol and diesel in accordance with international costs for a record six months.

As a result of the reward freeze, the companies recorded losses on fuel sales throughout May and June, when oil prices reached an all-time high of about USD 120 per barrel. Prices began to decline in August and last month reached levels seen in January.

The oil companies in India hoped to recover the losses they had incurred since April as a result of these developments, but the trend's reversal means they are back where they started.

The retail price of petrol and diesel, however, must be adjusted daily by IOC, BPCL, and HPCL in accordance with cost. But starting on November 4, 2021, these companies froze rates for a record 137 days, shortly before elections in areas like Uttar Pradesh.

The frozen expired on March 22 of this year, and in the little over a fortnight, before a new freeze began on April 7, prices increased by Rs. 10 per litre.

Petrol and diesel prices in major Indian cities for today:

Mumbai - Mumbai's diesel and petrol rates haven't changed in the recent few days. Mumbai's current price for gasoline is 106.29. Mumbai's diesel cost is currently 94.25 rupees.

Delhi - The price of petrol in Delhi is currently 96.76 rupees, while the cost of diesel in Delhi remains at 89.66 rupees.

Bangalore - The price of petrol in Bangalore hasn't changed much recently; the current price is 101.92. In the meantime, Bangalore's diesel price is still 87.87.

Hyderabad - The price of petrol in Hyderabad is still 109.64, and the cost of diesel is 97.8.

Chennai: The petrol price in Chennai is the same as it was yesterday; Rs 102.62. In a similar manner, Chennai's diesel price stays the same at 94.22.

Kolkata - The price of petrol in Kolkata is unchanged at 106.01, while the price of diesel in Kolkata is the same; Rs 92.74.