Diesel Price in India

Diesel prices in India are currently observing no major  fluctuation and the prices are ranged  between Rs. 78.05 and Rs. 97.57 per liter. Prices in some of the states in India like, West Bengal, Chennai, Bangalore, and Mumbai, are currently  at Rs. 91.67, Rs. 92.61, Rs. 88.99, and Rs. 88.97 per liter, respectively. 

India's petrol and diesel prices fluctuate daily, influenced by global crude oil prices and the rupee-dollar exchange rate.  A recent decision by Indian Oil to revise dealer margins, following the resolution of a legal dispute, will not have any impact on the prices consumers pay at the pump. 

Geopolitical tensions between Iran and Israel, along with China's economic stimulus measures, have sparked  volatility into the oil market this week. As a result, WTI crude oil futures climbed towards the $71 per barrel mark on Monday, marking their fourth consecutive day of gains. This uptick follows a Friday rally that briefly pushed oil prices above this level. However, this upward momentum has since slowed, and traders are now focused on sustaining this upward trend. OPEC+'s decision to postpone its December production plan for the second time has further contributed to the bullish sentiment in the market.

Today in India diesel rates are at an average between Rs. 82.5/- per litre to Rs. 96.4/- per litre among major Indian cities. Delhi diesel prices today are around Rs. 87.62/- per litre, while Chennai diesel prices today stand at Rs. 92.34/- per litre. However, in less populated regions like Nagpur diesel price, today is Rs. 90.5/- per litre, falling by Rs. 0.37/- since yesterday, and on the other hand, diesel rates in Patna today are around Rs. 92.10/- per litre.

Diesel prices in India today differ according to urban and rural areas. The regions with higher density tend to gain higher consumption in terms of CNG, which in economic terms becomes cheaper in metro cities, and expensive for rural India.

Over the recent years, the government of India has portrayed a negative outlook on Diesel consumption in India. The affordability of diesel-run vehicles by the working class population and the consistent use of diesel-based agricultural equipment for farming on a large scale might push Diesel rates in India to maintain stability. Also, the government ensures that expenses are stable for the largely middle-income groups present in the country.

Today during the Asian session, the energy segment prices have recovered from previous falls near the weekly average range, amidst a shift in risk sentiments towards capital markets.

Investors around the world would closely watch over the upcoming US business data scheduled for next week to have a directional push on spot gold demand. Moreover, the demand for fuel might also increase if the geopolitical tensions in the Middle East escalate further to the oil-exporting gulf countries.

The MCX Crude Oil Futures maturing next week are currently trading at Rs 6,361/-, a fall of Rs 126/- or 1.94% since Wednesday's closing.

Today Indian diesel rates are at Rs. 87.62/- per litre in Delhi, while Mumbai diesel rates are Rs. 89.97/- per litre. The diesel rate in Bangalore is Rs. 88.94/- and the Kolkata Diesel price is Rs. 91.76/-. Chennai diesel prices today are Rs. 92.34/- while the highest are in Trivandrum at Rs. 96.13/- per litre. Today diesel rates in India are stable with the help of the central government through stable taxation in recent times.

Most of the heavy-duty vehicles in India today run on diesel engines than any other fuel, indicating the significance of India's Diesel prices. A slight increase in Indian diesel prices today would have serious implications on the transport cost of the goods and services within the country. A rise in transport cost results in rising total cost for consumers to buy the product, eventually increasing the prices of the goods as well as the raw materials required for production

The demand for crude oil and Brent globally is losing traction as traders expect a higher GDP growth rate in the US economy, which would have an international impact, pushing investors toward risk-free investments. The mixed bond yields and US dollar index today indicate that there might be a rise in the commodity segment demand amidst the uncertain financial market condition.

However, investors would also cautiously await US economic indicators scheduled this week.

The MCX Oil Futures maturing in August are currently trading at Rs 6,580/-, a fall of Rs 32/- or 0.48% since Friday’s ending.

According to the recent news updates, Modi-government has declared a fortunate relief in fuel expenses for Indians. Today Diesel prices in India have fallen by Rs. 2/- per litre, to cost between the range of Rs. 82/- to Rs. 96/- per liter in various parts of the country. Delhi diesel rates today are among the lowest at Rs. 87.62/-, while diesel prices in Mumbai are Rs. 92.15/- per liter respectively. Likewise, Kolkata diesel prices are Rs. 90.76/- for a liter and Rs. 92.76/- per liter in Chennai.

The Indian government has allowed for customer charges and levies to decrease, which would help the middle-income population in terms of fuel expenses. However, it remains uncertain to say if the products and services which hike charges during surging fuel prices would push for lowering the prices of goods and services. Moreover, considering the faded sentiments of election season, Indians can expect government to have stable prices until May-June 2024.

Commodity markets on Friday Asian session are moving in mixed manner, despite a strong recovery noted in Brent and Crude Oil prices since past three days. The US dollar index gains traction with positive business data releases yesterday, posing a threat for dollar-backed oil trades ahead.

Investors would align their focus for upcoming US FOMC minutes and Asian market performance to have a major influence on global crude oil demand.

The WTI crude oil is trading around $ 81.14/- per barrel, which is 0.14% or $ 0.13/- lower than yesterday's closing.

The diesel prices traded firmly irrespective of the movement of the fuel prices in the international markets amidst the supply crisis. The diesel rates in India were recorded at Rs 94.24 per litre in Chennai; Rs 92.76 per litre in Kolkata; Rs 89.62 per litre in New Delhi and Rs 94.27 per litre in Mumbai.

In the international forum, Brent was seen at $85.54 per barrel, down by 1.24% and West Texas Intermediate (WTI) at $79.15 per barrel, down by 1.24%.

On Tuesday, both the crude benchmarks recorded a drop after the U.S. government said it will release crude from its Strategic Petroleum Reserve. The move by America has lifted some supply constraints faced by the oil markets.

Earlier in the session, both the crude benchmarks had declined by over $2 per barrel but it pared some losses after the data showed that the U.S. Consumer Price Index (CPI) accelerated at its slowest annual pace since late fiscal 2021. The situation has raised the likelihood of a less aggressive stance from the Fed in the coming months.

Yesterday, the U.S. Department of Energy (DOE) announced that it would sell 26 million barrels of crude from its strategic petroleum reserve (SPR).

The United States of America’s SPR is at its lowest level since 1983.

The DOE had even considered cancelling the sale after Joe Biden’s administration had sold a record 180 million barrels of crude from the reserve. But the move from DOE will require Congress to act to change the mandate.

The diesel prices in India are lasting for a long time as it has remained unchanged since mid-May 2022. The diesel rates in India were recorded at Rs 94.24 per litre in Chennai; Rs 92.76 per litre in Kolkata; Rs 89.62 per litre in New Delhi and Rs 94.27 per litre in Mumbai.

In the international scenario, Brent stood at $85.62 per barrel, down by 0.89% and West Texas Intermediate (WTI) at $78.89 per barrel, down by 1.04%.

The oil prices witnessed a marginal drop on Monday’s trade session after witnessing a surge in the previous session, as investors focus on the short-term demand concerns which are stemming from the release of the U.S. inflation data and refinery Maintenace in Asia and the United States of America.

An analyst from OANDA notes that the crude prices are softening as energy traders are forecasting a potentially weak fuel demand in the coming days and this might force the Fed to tighten the policy stance much more aggressively.

Last week, Russia announced its plans to trim down crude production in retaliation against western curbs on its oil imports which were imposed in response to Moscow's invasion of Ukraine.

Russia is likely to cut output production by 500,000 barrels per day (bpd) in March, accounting for around 5% of the output.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies had agreed in October to trim down the oil production by 2 million bpd which accounts for around 2% of the global fuel demand.

The diesel prices are sluggard in India despite a jump in the fuel prices in the global markets. The diesel rates in India were seen at Rs 89.62 per litre in New Delhi; Rs 94.27 per litre in Mumbai; Rs 92.76 per litre in Kolkata and Rs 94.24 per litre in Chennai.

In the international scenario, Brent stood at $86.39 per barrel, up by 2.24% and West Texas Intermediate (WTI) at $79.72 per barrel, up by 2.13%.

The oil prices in India have remained flat for a long time irrespective of the movement of crude in the international markets. India is purchasing crude from Russia despite the Western country's sanctions on Moscow.

The fuel prices gained recorded over 8% weekly gains. The ongoing tensions between Moscow and Ukraine have pressurized many western nations to impose a ban on the import of Russia’s crude oil. Hence Russia is planning to cut down crude output beginning in March 2023.

Both the crude benchmarks have witnessed growth during the week.

Russia’s Deputy Prime Minister – Alexander Novak said that the country plans to cut down its crude oil production in March by 500,000 barrels per day (bpd). This will account for around 5% of the output.

Analysts note that the drop in Russia’s oil production by 700,000 – 900,000 barrels in 2023 is in line with market expectations. They further noted that the key for the crude to break out of the current trading range is an uptick in China’s crude demand in the coming months post-recovery from the pandemic crisis.

The diesel prices traded flat in India despite gains in the crude rates in the international markets as Russia plans to cut down production in the wake of Western countries' sanctions. The diesel rates in India were recorded at Rs 89.62 per litre in New Delhi; Rs 94.24 per litre in Chennai; Rs 92.76 per litre in Kolkata and Rs 94.27 per litre in Mumbai.

In the global platform, Brent was seen at $86.30 per barrel, up by 2.17 per cent and West Texas Intermediate (WTI) at $79.69 per barrel, up by 2.09 per cent.

Moscow is set to cut down its fuel production from March in the wake of the EU’s sanction on its fuel imports.

Russia’s Deputy Prime Minister – Alexander Novak said that the country plans to cut down its oil production in March 2023 by 500,000 barrels per day, accounting for around 5 per cent of the output.

Analysts note that Russia’s output last year defied predictions of a downfall, but its oil sales will prove more difficult amidst the imposition of the new western sanctions.

Meanwhile, investment banking firm – Goldman Sachs has reduced the price outlook for Brent in 2023 to $92 per barrel from its previous forecast of $98 per barrel and its 2024 forecast to $100 per barrel from its earlier outlook of $105 per barrel.

10 February 2023

The diesel prices are sturdy in India despite recording marginal gains in the international markets as IEA hints at the improvement in China's demand outlook. The diesel rates in India were recorded at Rs 89.62 per litre in New Delhi; Rs 94.24 per litre in Chennai; Rs 92.76 per litre in Kolkata and Rs 94.27 per litre in Mumbai.

In the international platform, Brent was seen at $80.46 per barrel, up by 0.65% and West Texas Intermediate (WTI) at $73.73 per barrel, up by 0.46%.

China is the world’s largest crude importer globally, the improvement in the fuel demand from the dragon country will indeed uplift the global crude rates, which have seen a drastic drop of 8 per cent recently.

The IEA is forecasting that half of the global crude demand growth for the year will come from China, wherein the jet fuel demand is witnessing a surge.

The stronger-than-expected U.S. jobs report has raised concerns that the Fed will keep hiking interest rates, bolstering the dollar value to surge. Usually, the stronger greenback will reduce the demand for dollar-denominated crude from buyers, who pay using other currencies.

The strong U.S. jobs report has raised concern that the Fed will continue to hike interest rates, bolstering the dollar value.

The stronger greenback will typically diminish the demand for the U.S. dollar-denominated crude from buyers who are paying with other currencies.

Analysts note that the higher interest rates will keep a lid on further price gains, as it will curtail economic growth and hike the fuel demand.

The diesel prices are substantial in India despite a marginal fall in the global crude rates as the Russian crude supply products ban looms. The diesel rates in India were seen at Rs 89.62 per litre in New Delhi; Rs 94.33 per litre in Chennai; Rs 92.76 per litre in Kolkata and Rs 94.27 per litre in Mumbai.

In the global scenario, Brent was seen at $82.51 per barrel, down by 0.40% and West Texas Intermediate (WTI) at $76.23 per barrel, down by 0.24%.

The oil prices slipped in the overseas markets as looming sanctions on Russia have created an uncertain environment and a build in the U.S. fuel stocks has suggested a sluggish demand despite signs of global economic revival.

The Fed has hiked interest rates by 25 basis points in line with market expectations.

The European Union’s ban on Russia’s refined products will come into effect from February 5, 2023, and this will potentially blow the global crude supply.

The European Union nations will seek a deal tomorrow on a European Commission proposal to set a price cap on Moscow’s crude products after postponing a decision yesterday due to the divisions amongst the member states.

The European Commission proposed last week that the EU can apply a price cap of $100 per barrel on premium Russian oil products like diesel and a $45 per barrel cap on discounted products like fuel oil.

2 February 2023