Petrol, diesel prices today: Fuel rates in Delhi, Mumbai, Bengaluru, Kolkata, other cities as crude edges lower

Petrol and diesel prices today: Fuel prices in India held steady with marginal changes on Friday, 3 July, even though brent crude price declined amid easing geopolitical tensions. Although global crude oil prices have fallen to a four-month low, but state run Oil Marketing Companies (OMCs) are unlikely to cut domestic fuel prices anytime soon. According to Union petroleum and natural gas minister Hardeep Singh Puri, domestic retail refiners are still processing costlier crude purchased during the peak of the West Asia crisis.

On Wednesday, OMCs cut ATF prices by about ₹5 per litre and slashed commercial 19-kg LPG rates by ₹183.50 per cylinder as a part of its monthly revision, marking the first reduction in nearly 4 months. At the same time, the 5-kg marked-priced or Free Trade LPG (FTL) cylinder rate also plunged by ₹13 to ₹808.50 per 5-kg cylinder. Nayara Energy, India's largest private retailer, also announced rate cut in petrol and diesel prices. With this price adjustment, the Rosneft-backed company became the first retailer in more than two years to reduce pump rates.

The last revision in petrol and diesel prices was made in the second half of May when rates were increased by about ₹7.50 per litre each. During the period of volatility in oil prices due to geopolitical tensions, fuel retailers absorbed a significant portion of the higher crude prices and incurred cumulative losses of ₹74,781 crore on the sale of petrol, diesel and subsidised cooking gas (LPG).

OMCs, including Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) are still recovering from processing higher-cost crude purchased during the conflict.

Responding to queries on whether fuel prices would be cut, Puri said, “If the question is, when will you break prices down? Well, they (OMCs) are still carrying the stock which was bought at a higher price with higher insurance, higher freight rates. If this (low crude prices) persists next two, three months, then that would be a legitimate question," while addressing a press briefing on Thursday.

Check petrol and diesel price in your city on 3 July

Brent crude price today: Oil slides as more tankers transit Strait of Hormuz

The downward pressure on oil prices can be attributed to increase in oil tanker transits through the Strait of Hormuz which has added to a gush of near-term supply.

While talks between the US and Iran continue for a lasting accord, Brent traded above $71 a barrel. As crude exports return to pre-war levels, the global benchmark has been in contango, signaling oversupply. Following positive discussions in Qatar on Washington and Tehran's 14-point Memorandum of Understanding, Brent is on track for a fourth weekly loss — which would be the longest streak since August 2024, Bloomberg reported.

Citigroup Inc analysts including Francesco Martoccia and Eric Lee said in a note on 2 July said, “Fundamentals are rapidly reasserting themselves as Hormuz disruptions fade” and “shipping flows are normalizing,"

“The US-Iran process remains fragile and disputes over Hormuz administration and transit fees persist," Bloomberg quoted Citigroup analysts' statement.