As tensions in the US-Iran war ease, fuel prices across industries -- commercial liquefied petroleum gas (LPG), petrol, diesel and aviation turbine fuel -- were cut on Wednesday, bringing much-needed relief to consumers and companies.
The developments came after American negotiators, Jared Kushner and Steve Witkoff, reportedly had positive discussions in Qatar. A senior Trump administration official said that technical talks with Iran were moving forward, Bloomberg reported.
Since February 28, a global energy crisis triggered by the West Asia conflict has driven oil prices worldwide higher. The tensions in the Strait of Hormuz, a crucial oil chokepoint, disrupted global energy supplies, including to India.
India also witnessed hiked LPG, petrol, diesel, and jet fuel prices. The easing of tensions has brought big price cuts with it --
Commercial LPG price down by over ₹180
Prices of commercial LPG, used in hotels and restaurants, were cut by ₹183.50 per 19-kg cylinder on Wednesday, news agency PTI reported.
Following the first such rate reduction this year, a 19-kg commercial LPG cylinder now costs ₹2,930, oil companies said.
{{/usCountry}}Following the first such rate reduction this year, a 19-kg commercial LPG cylinder now costs ₹2,930, oil companies said.
{{/usCountry}}The prices of commercial LPG hit an all-time high last month when the rate reached ₹3,113 per 19-kg cylinder.
Commercial LPG rates are revised on the first of every month on the basis of the average benchmark prices in the previous month.
City-wise commercial LPG rates today (per 19-kg cylinder):
New Delhi - ₹2,930
Chennai - ₹ 3,106
Hyderabad - ₹ 3,191
Kolkata - ₹ 3,081.50
Mumbai - ₹ 2,885.50
Bengaluru - ₹ 3,021
(data from goodreturns.com)
Nayara cuts petrol, fuel prices
Nayara Energy, India's largest private fuel retailer, reduced petrol prices by ₹5 per litre and diesel by ₹3 across its nationwide network on Wednesday.
The revised rates have reportedly taken effect at more than 7,000 Nayara Energy fuel stations across the nation. However, pump prices may vary across states depending on local tariffs and duties, including value-added tax (VAT).
Petrol and diesel prices from the public sector fuel retailers remain unchanged.
Notably, Nayara was also the first fuel company to hike prices at the peak of the US-Iran war -- in March.
Check city-wise petrol, diesel prices (per litre):
New Delhi:
- Petrol - ₹102.12
- Diesel - ₹95.20
Chennai:
- Petrol - ₹107.76
- Diesel - ₹99.55
Hyderabad:
- Petrol - ₹115.69
- Diesel - ₹103.82
Kolkata:
- Petrol - ₹113.51
- Diesel - ₹99.82
Mumbai:
- Petrol - ₹111.21
- Diesel - ₹97.83
Bengaluru:
- Petrol - ₹111.68
- Diesel - ₹99.56
(data from goodreturns.com)
Jet fuel prices cut by ₹5/litre
The price of aviation turbine fuel (ATF) or jet fuel was reportedly reduced by ₹5 per litre on Wednesday, another big relief amid easing global oil prices.
Jet fuel now costs ₹110/litre in New Delhi, news agency PTI reported, citing industry sources.
This is also the first such reduction in jet fuel rates since the West Asia crisis triggered a spike in ATF prices.
Jet fuel prices initially surged on April 1, with the Indian Oil Corporation (IOC) displaying a rate of ₹2,07,341.22 per kilolitre, up 114.55 per cent from ₹96,638.14 per KL, in Delhi.
However, the government was prompted to intervene in the ATF price hike to influence oil marketing companies into moderating the increase for scheduled domestic airlines.
The final jet fuel price for domestic carriers in Delhi was revised to ₹1,04,927 per KL.
Situation in Strait of Hormuz
Given the signed 14-point memorandum of understanding between Iran and the US and the easing of tensions following the recent talks in Qatar, oil tanker traffic is reportedly showing signs of recovery.
Crude oil prices have also fallen in recent days as hopes for a permanent end to the conflict have increased.
On Wednesday, Brent traded above $73 per barrel, while the West Texas Intermediate was near $70.
Samantha Dart, co-head of global commodities research at Goldman Sachs Group Inc., referred to the US-Iran conflict and said, "We expect that by the end of July this is done."
"Once we have a normalisation of flows through the Strait, the expectation is that we go into an oversupply," Dart added.
Notably, Iran has said it exported over 40 million barrels of oil since the US lifted its naval blockade on Iranian ports, with Russian shipments surging to records.