Fresh diplomatic engagement between the United States and Iran has contributed to easing concerns over global energy supplies, leading to reductions in fuel prices in India. The developments follow reports that American negotiators Jared Kushner and Steve Witkoff held positive discussions with Iranian representatives in Qatar.
According to Bloomberg, a senior official in the Trump administration said technical-level negotiations between Washington and Tehran were progressing. The improvement in diplomatic ties comes after months of heightened tensions in West Asia, which had disrupted oil markets and pushed up energy prices worldwide.
Since February 28, the conflict in West Asia had triggered a global energy crisis by disrupting shipping through the Strait of Hormuz, one of the world’s most critical oil transit routes. The uncertainty affected crude oil supplies to several countries, including India, resulting in higher prices for LPG, petrol, diesel and aviation fuel.
Commercial LPG prices reduced by Rs 183.50 per cylinder
Oil marketing companies have reduced the price of commercial LPG cylinders by Rs 183.50 per 19-kg cylinder from Wednesday. According to PTI, the revision marks the first reduction in commercial LPG prices this year.
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Following the latest cut, a 19-kg commercial LPG cylinder is priced at Rs 2,930 in New Delhi. Last month, commercial LPG rates had reached a record high of Rs 3,113 per cylinder.
Commercial LPG prices are revised on the first day of every month based on average benchmark prices recorded during the previous month.
Commercial LPG prices across major cities
The revised prices for a 19-kg commercial LPG cylinder are:
- New Delhi – Rs 2,930
- Mumbai – Rs 2,885.50
- Bengaluru – Rs 3,021
- Kolkata – Rs 3,081.50
- Chennai – Rs 3,106
- Hyderabad – Rs 3,191
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Nayara Energy lowers petrol and diesel prices
Private fuel retailer Nayara Energy has reduced petrol prices by Rs 5 per litre and diesel prices by Rs 3 per litre across its network of more than 7,000 fuel stations nationwide.
The revised prices came into effect on Wednesday, although retail rates may vary between states depending on local taxes and value-added tax (VAT). Prices at public sector fuel retailers remain unchanged.
Nayara had previously increased fuel prices during the peak of the US-Iran conflict earlier this year.
Petrol and diesel prices remain unchanged at public sector pumps
Retail prices at public sector fuel stations continue to remain unchanged in major cities.
Current prices are:
New Delhi
- Petrol: Rs 102.12 per litre
- Diesel: Rs 95.20 per litre
Mumbai
- Petrol: Rs 111.21 per litre
- Diesel: Rs 97.83 per litre
Kolkata
- Petrol: Rs 113.51 per litre
- Diesel: Rs 99.82 per litre
Chennai
- Petrol: Rs 107.76 per litre
- Diesel: Rs 99.55 per litre
Hyderabad
- Petrol: Rs 115.69 per litre
- Diesel: Rs 103.82 per litre
Bengaluru
- Petrol: Rs 111.68 per litre
- Diesel: Rs 99.56 per litre
Jet fuel prices witness first reduction since regional conflict
The price of aviation turbine fuel (ATF), commonly known as jet fuel, has also been reduced by approximately Rs 5 per litre, offering relief to the aviation sector amid falling global crude oil prices.
According to PTI, jet fuel in New Delhi is now priced at around Rs 110 per litre. This is the first reduction in ATF prices since the West Asia conflict triggered a sharp rise in aviation fuel costs.
ATF prices had surged on April 1, when Indian Oil Corporation listed the Delhi rate at Rs 2,07,341.22 per kilolitre, compared with Rs 96,638.14 per kilolitre earlier. Following government intervention, the price for scheduled domestic airlines was revised to Rs 1,04,927 per kilolitre.
The easing of tensions follows the signing of a 14-point memorandum of understanding between the United States and Iran. Reports indicate that oil tanker traffic through the Strait of Hormuz has started recovering as concerns over disruptions have eased.
Global crude oil prices have also declined amid expectations of improved supply. On Wednesday, Brent crude traded above $73 per barrel, while West Texas Intermediate hovered near $70 per barrel.
Samantha Dart, Co-Head of Global Commodities Research at Goldman Sachs Group Inc., said the market expects the US-Iran conflict to move towards resolution by the end of July. She said that once normal shipping resumes through the Strait of Hormuz, the oil market is expected to move into a phase of oversupply.
Meanwhile, Iran has stated that it exported more than 40 million barrels of crude oil after the United States lifted its naval blockade on Iranian ports.
