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

Petrol and diesel prices today, 16 July: Retail fuel rates in India stood steady on Thursday even as benchmark crude oil climbed for a fourth day, rising to its highest in about a month. Renewed escalation in conflict has heightened uncertainty over energy supplies. The United States reinstated naval blockade of Iranian ports in the Strait of Hormuz, the critical waterway through which one fifth of global oil trade takes place, after Iran announced closure of the chokepoint.

The US stepped up its air campaign after Tehran launched attacks on commercial vessels attempting to transit the Strait. The fare-up caused significant disruption in energy flows, injecting fresh risk into the market and reviving concerns over flows from the energy-rich region.

The renewed hostilities erased part of a roughly 30% slump in oil prices in the second quarter. Carlyle Group Inc senior adviser Jeff Currie said, “So not only have we now lost all of the Straits of Hormuz again, but we have also lost the crude oil and the refineries in Russia." He added, “The situation in energy, I would argue, is pretty dire.”

The domestic retail price of petrol and diesel is determined by state-run Oil Marketing Companies (OMCs), so there is no real impact of global fluctuation in oil prices on consumers in the short run.

Check latest petrol and diesel price in your city on 16 July

Brent crude price today

Brent crude futures soared 0.4% to $85.28 a barrel, registering 33 cents gain at 0026 GMT, Reuters reported. As per Goldman Sachs, Brent could rise as high as $110 per barrel in the fourth quarter if the Gulf export recovery continues to stall. However, the situation would be vice versa if tensions ease and production recovers faster than expected and crude could fall into the $60s by year-end.

According to Wall Street Journal report, Trump is planning to expand military operations in Kharg Island, home to the Islamic Republic’s main oil export terminal. Over the tanker traffic movement in the Persian Gulf, Central Command spokesman Captain Tim Hawkins said that US-assisted transits reached double digits on Tuesday night. In the past week nearly 300 ships crossed the waterway out of which half were helped by US forces.

Centre increases windfall taxes on diesel exports and jet fuel

The Centre increased windfall taxes on exports of diesel and aviation turbine fuel (ATF) amid surge in global oil prices due to West Asia conflict. The duty on diesel exports and aviation turbine has been increased by ₹7 per litre each while the export duty on petrol has been lowered to ₹2.5 per litre from ₹4 per litre. The duty on diesel exports is now ₹15.5 per litre and on aviation turbine fuel it is ₹14.5 per litre.