Key Points
- Global Market Rally: Brent crude has climbed to $67.33 per barrel, following a sharp $1 gain in the last 24 hours.
- Regional Hikes: Significant price jumps were recorded in Lucknow and Patna, with increases of up to 18 paise per liter.
- Metro Stability: While regional prices fluctuated, rates in the national capital, Delhi, and Mumbai remained steady today.
- Economic Impact: Daily price revisions at 6 AM continue to reflect international volatility, affecting local logistics and transportation costs.
The recent volatility in the global energy market has begun to manifest at domestic fuel pumps across India. According to data released by government-owned oil marketing companies on Wednesday, petrol and diesel prices have seen an upward revision in several major cities. This shift follows a significant surge in international crude benchmarks, which has directly increased the procurement burden for domestic suppliers and, consequently, the common man.
Global Crude Market Trends
In the international market, the price of Brent crude has reached $67.33 per barrel, an increase of approximately $1 within the latest trading cycle. Similarly, WTI crude is currently trading near $63.89 per barrel, also reflecting a gain of $1. Experts note that these prices have been trending toward the $68 mark over the last 24 hours, driven by shifting global demand and geopolitical factors that influence supply chains.
Impact on Uttar Pradesh and Bihar
In Uttar Pradesh, the capital city of Lucknow witnessed a petrol price hike of 16 paise today, bringing the new rate to ₹94.85 per liter. Diesel in the city followed suit with an 18-paise increase, reaching ₹87.99. The fluctuation remains continuous across the state as local dealers adjust to the new benchmarks.
In Bihar, the impact is even more pronounced. In Patna, petrol has become 17 paise more expensive, now retailing at ₹105.60 per liter. Diesel prices in the Bihar capital rose by 16 paise, settling at ₹91.83. These variations are often exacerbated by differing transportation costs and local VAT structures across various districts.
Changes in Haryana and National Metros
Gurugram, a major industrial and corporate hub in Haryana, saw petrol prices rise by 9 paise to ₹95.65, while diesel increased by 8 paise to ₹88.10 per liter. Given its status as a logistics center, even minor hikes in Gurugram can have a cascading effect on the cost of local services and freight.
Meanwhile, prices in India’s largest metropolitan areas remained relatively stable this morning:
- Delhi: Petrol stays at ₹94.72, Diesel at ₹87.62.
- Mumbai: Petrol at ₹103.44, Diesel at ₹89.97.
- Kolkata: Petrol at ₹104.95, Diesel at ₹91.76.
- Chennai: Petrol at ₹100.76, Diesel at ₹92.35.
The Price Determination Mechanism
Government oil companies review and update fuel prices daily at 6 AM. These revisions are based on a complex calculation involving international benchmark prices, foreign exchange rates (specifically the USD to INR strength), and local taxes.
The current upward trend in fuel costs is expected to increase the burden of inflation on the middle class. Since fuel is a primary component of logistics, higher pump prices inevitably lead to increased costs for essential goods and services. If the global surge in crude oil continues, analysts suggest that further domestic price hikes may be inevitable in the coming weeks. Consumers are advised to monitor official mobile apps or use SMS services provided by oil companies to track the most current rates in their specific localities.
