1 week ago
Indian Fuel Rates Hold Steady Amid Crude Gains, Iran Tensions
Petrol and diesel prices in India changed very little on 22 and 23 August.
Fuel companies check prices every morning at 6:00 AM.
The last major price increase happened on 25 May.
Meanwhile, the world price of crude oil went up during the week.
This happened as tensions continued between the United States and Iran.
Iran’s president asked for talks to help solve the disagreement.
Iran said the Strait of Hormuz would not reopen until the United States changed its actions, while the United States said oil was still moving through the strait.
India and Mauritius also agreed that Indian Oil Corporation would supply Mauritius with fuel for five years.
The Indian government separately said higher sugar prices were caused by lower production and stronger demand, not ethanol.
Indian petrol and diesel prices were largely unchanged across major cities on 22 and 23 August, with limited changes reported on 23 August.
Oil Marketing Companies last made a major price adjustment on 25 May, raising petrol by ₹2.61 and diesel by ₹2.71 per litre.
On 23 August, petrol cost ₹102.12 and diesel ₹95.20 per litre in New Delhi; Mumbai prices were ₹111.31 and ₹97.97.
Brent crude gained 6.39% during the week to settle at $94.39 a barrel, while West Texas Intermediate rose 5.66% to $87.06.
Iran’s president called for dialogue, while the United States, Iran and China remained divided over pressure, sanctions and oil flows through the Strait of Hormuz.
- Who
- Indian fuel consumers, Indian Oil Corporation, the United States, Iran, China, Mauritius and the Indian Ministry of Consumer Affairs, Food & Public Distribution.
- What
- Indian fuel prices remained mostly steady as crude oil gained during the week; Iran sought dialogue and India agreed to a long-term fuel-supply pact with Mauritius.
- Where
- Major Indian cities, the Strait of Hormuz, the Persian Gulf, Iran, the United States, India and Mauritius.
- When
- 22 and 23 August; fuel prices are revised daily at 6:00 AM, and the major previous adjustment occurred on 25 May.
- Why
- Indian fuel retailers continued insulating consumers from global oil-price volatility, while tensions involving Iran affected concerns about energy supplies.
Pressure and continued oil flows
Dialogue and opposition to pressure
US-Iran negotiations
Pressure and continued oil flows
United States President Donald Trump said Iran wanted an agreement but was not prepared to accept terms he considered necessary.
Dialogue and opposition to pressure
Iranian President Masoud Pezeshkian called for a solution through dialogue and logic, while Iranian Foreign Minister Abbas Araghchi said the US pressure campaign would fail.
Sanctions against Iran
Pressure and continued oil flows
The United States threatened economic sanctions against Iran’s trading partners as part of increased pressure on Tehran.
Dialogue and opposition to pressure
China said the sanctions did not fit the interests of any party, and Iran rejected the effectiveness of previous and proposed pressure campaigns.
Strait of Hormuz oil flows
Pressure and continued oil flows
US Energy Secretary Chris Wright said the US Navy was helping oil continue to move through the Strait of Hormuz, with more than 8 million barrels a day crossing on a seven-day average according to his post.
Dialogue and opposition to pressure
Iranian official Mohsen Rezaei said the strait remained closed and would not reopen until Washington fulfilled its commitments and changed its behaviour.
Key facts
- New Delhi prices on 23 August
- Petrol ₹102.12 per litre; diesel ₹95.20 per litre.
- Mumbai prices on 23 August
- Petrol ₹111.31 per litre; diesel ₹97.97 per litre.
- Bengaluru prices on 23 August
- Petrol ₹110.82 per litre; diesel ₹98.77 per litre.
- Last major Indian fuel adjustment
- On 25 May, petrol increased by ₹2.61 per litre and diesel by ₹2.71 per litre.
- Weekly crude performance
- Brent crude gained 6.39% and settled at $94.39 a barrel; West Texas Intermediate gained 5.66% and closed at $87.06.
- India-Mauritius fuel agreement
- Indian Oil Corporation agreed to supply Mauritius’s entire import requirement of petrol, diesel and aviation turbine fuel for five years.
- Sugar price explanation
- Retail sugar prices rose from ₹48.18 per kilogram on 20 July to ₹55.70 on 20 August; the government attributed the increase to lower production and stronger demand, rejecting an ethanol link.
Quotes
Donald Trump
US president commenting on Iran’s willingness to negotiate with the United States
“combined with pipelines, the total leaving the region is closer to 20 million barrels. 7-day average of oil leaving the Strait is over 8 million barrels a day. Make no mistake, thanks to the U.S. Navy, oil is flowing through the Strait of Hormuz”
livemint.com
“We’re seeing what happens. They have no money. They have no navy. They have no air force. They’re not paying their soldiers. They’re not paying their police. They have 350% inflation.”
livemint.com
Sources
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