India Fuel Prices Aug 31: Petrol, Diesel Rates in Major Cities

Petrol and diesel prices on August 31 varied across India’s major cities, reflecting the ongoing shifts in global crude oil markets and domestic policy factors. Brent crude prices were observed trading higher on Monday at $89.21 a barrel, approaching the $90 mark amidst geopolitical uncertainties.

This current trend follows a period of decline last week, where oil prices fell due to stalled diplomatic efforts between the United States and Iran, alongside the resumption of some crude flows through the crucial Strait of Hormuz.

Global Crude Market Snapshot

• Brent crude futures closed Friday at $89.31 a barrel, a decrease of 39 cents.
• West Texas Intermediate (WTI) crude saw a drop of 13 cents, settling at $83.40.
• Over the last week, Brent crude experienced a loss exceeding 5%.
• WTI crude slipped approximately 4% during the same weekly period.

For India, which relies on crude oil imports for over 85% of its consumption, a sustained rise in global prices poses significant economic challenges. Such an increase could elevate the nation’s import bill and intensify inflationary pressures, potentially leading to further domestic fuel price hikes.

City-Wise Fuel Rates on August 31

Here are the petrol prices recorded on August 31:

• Delhi: Rs 102.12/litre
• Kolkata: Rs 113.43/litre
• Mumbai: Rs 111.12/litre
• Chennai: Rs 107.75/litre
• Hyderabad: Rs 115.69/litre
• Bengaluru: Rs 110.93/litre

Diesel prices on August 31 were as follows:

• Delhi: Rs 95.20/litre
• Kolkata: Rs 99.78/litre
• Mumbai: Rs 97.78/litre
• Chennai: Rs 99.57/litre
• Hyderabad: Rs 103.82/litre
• Bengaluru: Rs 98.79/litre

While global crude prices remain the primary factor determining retail fuel costs in India, several other elements significantly influence the final rates. These include the central and state taxes applied, refining margins, freight and distribution expenditures, and the prevailing exchange rate of the rupee against the US dollar.