India fuel prices remain stable at state pumps despite rising global crude costs

Fuel prices in India remain stable at government-run petrol pumps despite fluctuations in the global crude oil market. While Brent crude has traded around the $100 per barrel mark, public sector oil marketing companies have not implemented any price changes in major cities like Delhi and Mumbai.

In contrast, private player Nayara Energy has increased its fuel prices, raising petrol by ₹5 per litre and diesel by ₹3 per litre across its 7,000+ stations. This has resulted in higher costs for consumers using Nayara pumps compared to those using Indian Oil or other state-run outlets.

Adding complexity to the market, a report from Kotak Securities suggests a significant gap between benchmark crude prices and actual physical market costs. Commodities research head Anindya Banerjee noted that while screen prices may show $100 per barrel, the real cost could reach $145 per barrel when accounting for surging shipping and freight rates, which have exceeded $1 million for VLCCs.