New Delhi: Crude oil prices in the international market are witnessing significant volatility, casting uncertainty over petrol and diesel prices in many countries. Following Donald Trump’s defeat in the US midterm elections, there is growing optimism regarding the potential end of the conflict involving Iran; this has led to a decline in crude oil prices this morning. However, this drop has had no impact in India.
Indian petroleum companies have made no changes to petrol and diesel prices as of Thursday morning, meaning rates remain stable. If you are planning to purchase petrol or diesel, there is no need to wait. We are providing details on the prices for various cities below.
Petrol and Diesel Prices in the Global Market
Crude oil prices are seeing a decline in the international market. Brent crude has experienced a sharp drop of approximately $8.98, falling to $94.62 per barrel. Meanwhile, state-owned oil marketing companies released the petrol and diesel rates for November 5 at 6:00 AM. Despite the decline in crude oil prices, these companies have not implemented any reductions in the retail prices of petrol and diesel.
Petrol and Diesel Prices in Major Cities
In the national capital, New Delhi, the price of petrol is ₹102.12 per litre, while diesel is priced at ₹95.20 per litre. In Hyderabad, the capital of Telangana, petrol is priced at ₹115.69 per litre, and diesel is at ₹103.82 per litre.
In Chennai, the capital of Tamil Nadu, the price of petrol is ₹107.76 per litre, and diesel is priced at ₹99.55 per litre. In Mumbai, the capital of Maharashtra, the price of petrol is recorded at ₹111.21 per litre, while the price of diesel stands at ₹97.83 per litre. In Bengaluru, the capital of Karnataka, the price of petrol is ₹110.82 per litre, and the price of diesel is ₹98.78 per litre.
Why do petrol and diesel prices not drop immediately following a decline in crude oil prices?
It is a common misconception that if the price of crude oil falls in the global market today, the prices of petrol and diesel should decrease by the following morning. This is not the case, and there are several reasons for this. Furthermore, the crude oil that has become cheaper today is not delivered immediately.
The oil currently arriving in India was purchased under agreements and at rates finalised months earlier, for instance, back in September or October. It can take until January or February for oil that has become cheaper today to actually reach India. Although government-owned oil marketing companies (IOCL, BPCL, and HPCL) issue daily price updates, these prices remain subject to specific controls.
