India reduces cheap Russian oil imports:Will petrol and diesel prices rise? Check out how OMCs fix fuel rates

At the hindsight of reported fall in imports of cheaper Russian oil by India and a spike in the international energy standard, Brent crude oil prices, speculations are rife that the Oil Marketing Companies (OMCs) might increase petrol and diesel prices in the country. An official working with the state-owned oil and gas explorer and producer, the Oil Natural Gas Corporation (ONGC) said on conditions of anonymity, despite of anticipated rise in average cost of imports of crude oil, the petrol and diesel rates are unlikely to increase in India. Why OMCs may not hike fuel prices going forward? According to the official, there are oversupply conditions of Brent crude on global level. So, international prices are expected to remain under control. As, India’s domestic fuel prices are connected with international rates, so, it is unlikely that the OMCs would have to hike selling prices. Price of Brent Crude on Friday Brent crude prices hovered around $66 per barrel on Friday. Petrol diesel rates were last increased in India in April 2022: The OMCs have not increased mobility fuel prices in more than last three years. The OMCs had last hiked fuel rates on 06 April 2022 to ₹105.41 per litre (Delhi) for petrol and ₹96.67 (Delhi) per litre for diesel. Companies had slashed rates in March 2024: The OMCs had last slashed fuel rates by ₹2 per litre in March 2024. Since then, petrol in the national capital costs ₹94.72 per litre and diesel comes at ₹87.62 per litre. How fuel prices are determined? Fuel retailers such as Bharat Petroleum Corporation Ltd, Hindustan Petroleum Corporation Ltd, etc, revise petrol and diesel rates on a daily basis in the country. This revision in the price is overseen by the Petroleum Planning and Analysis Cell (PPAC), which falls under the Ministry of Petroleum and Natural Gas. According to Lemonn Markets Desk, price of international crude oil, government taxes, dealer charges and others are components of final retailing price of mobility fuel in the country. ​