Petrol, diesel prices today: Check latest fuel rates in Delhi, Mumbai, Bengaluru, Kolkata amid spike in windfall tax

India’s Fuel Prices Remain Unchanged Amid Global Oil Price Fluctuations

Petrol diesel prices today – On Thursday, July 16, petrol and diesel prices in India stayed the same despite a fourth consecutive day of rising benchmark crude oil prices, hitting their peak in nearly a month. The ongoing geopolitical tensions have cast doubt on the stability of oil supply routes, particularly the Strait of Hormuz, a vital artery for global oil trade. This critical waterway handles approximately 20% of the world’s oil transportation, and recent events have intensified concerns about disruptions in energy flows.

Escalating Conflict Sparks Market Volatility

Iran’s decision to close the Strait of Hormuz triggered renewed U.S. military action, including a reinstated naval blockade of Iranian ports. The move came after Tehran launched attacks on commercial ships navigating the strait, prompting a significant increase in oil price volatility. The situation has raised fears about potential bottlenecks in energy supply, with Goldman Sachs forecasting a possible Brent crude price surge to $110 per barrel by the end of the year if Gulf exports continue to stagnate. However, a resolution in tensions could reverse this trend, pushing prices into the $60s by year’s end.

“Not only have we lost control of the Strait of Hormuz again, but we’ve also seen a decline in Russian crude oil and refinery capacity,” noted Jeff Currie, a senior adviser at Carlyle Group Inc. “The energy market is facing a severe crisis.”

Government Adjusts Export Taxes in Response to Price Shifts

India’s central government has increased windfall taxes on diesel and aviation turbine fuel (ATF) exports to address the surge in global oil prices. The export duty for diesel has risen by ₹7 per litre, now standing at ₹15.5 per litre, while ATF’s duty increased to ₹14.5 per litre. Petrol exports, meanwhile, saw a reduction in the tax rate from ₹4 to ₹2.5 per litre. These adjustments aim to stabilize domestic fuel markets amid international uncertainties.

State-owned oil marketing companies (OMCs) set retail prices, meaning consumers may not feel the immediate effects of global price swings. However, the conflict’s impact on supply chains and the subsequent tax changes highlight the interconnectedness of international events and domestic fuel economics.

Current Fuel Rates in Major Cities

As of July 16, updated fuel prices in key Indian cities include: – Delhi: Petrol and diesel rates remain unchanged. – Mumbai: No significant adjustments reported. – Bengaluru: Prices stayed stable. – Kolkata: No changes observed. For real-time updates, check local OMC announcements or online tracking tools.

Brent crude futures climbed 0.4% to $85.28 per barrel, up 33 cents, according to Reuters. Analysts suggest this could be a precursor to further price increases, though market conditions may shift if regional tensions ease and production resumes swiftly.