Diesel Price in Karnataka (25th April 2024)

Diesel Prices Untouched in Bangalore

The diesel prices are untouched in Bangalore despite marginal gains in crude rates in the international markets as supply concerns outweigh weak global growth. The diesel rates in Bangalore traded at Rs 94.79 per litre.

In the international scenario, Brent traded at $112.5 per barrel, up by 0.46% and West Texas Intermediate (WTI) at $110.30 per barrel, up by 0.35%.

WTI marked its fourth consecutive weekly gain, the last record occurred during mid – February. The crude benchmark – Brent gained around 1% this week after sliding by around 1% last week.

In an unexpected announcement, the finance minister – Nirmala Sitharaman announced that the Government of India will be trimming down excise duty on petrol and diesel, bringing down the prices of fuel – petrol by Rs 9.5 per litre and diesel by Rs 7 per litre.

The crude imports of India during April were the highest in three and half years as the world’s third-biggest fuel importer and consumer ramped up discounted oil from Moscow to fight high prices and for fuel demand recovery.

Shanghai is not showing any signal to change its planned end to the prolonged lock-down in the city which it had announced on the lift on June 1, 2022.

Though the city announced its first new pandemic case outside the quarantined area in five days.

The energy markets are anticipating lifting a few pandemic related restrictions in Shanghai to bolster the fuel demand in the coming days. China is the world’s biggest crude importer.

 

21 May 2022

Diesel Prices Stable in Bangalore

The diesel prices are stable in Bangalore despite a jump in the crude rates in the international markets as chances increase on the EU's restrictions on Russia's oil. The diesel rates in Bangalore were seen at Rs 94.79 per litre.

In the international scenario, Brent was seen at $109.80 per barrel; up by 2.04% and West Texas Intermediate (WTI) at $106.80 per barrel, up by 1.34%.

Russia invaded Ukraine using military force on February 24, 2022. Many Western countries have condemned the move of Moscow and have imposed sanctions. The list of sanctions includes a ban on Russia's crude oil.

The crude prices settled higher yesterday on the increased likelihood that Germany will join other European Union states in imposing a ban on Russia's oil. The situation will tighten the supplies in the already stressed global fuel market.

Both the crude benchmarks rallied up to touch above 1%, as Germany is likely to join other European Union member states in an embargo on Russia's oil imports. The situation could further tighten crude supplies and stress global fuel markets.

Traders were reacting to media reports from Germany's Economy Minister, Robert Habeck, who noted that the European Union's largest economy could cope with an EU embargo on Moscow's crude imports and Germany hoped that it could find an alternative source to replace Russia's oil.

The increase in mass testing of China's Beijing population has also raised concerns over the fuel demand. China is the largest importer of crude globally. The dragon country had imposed lock-downs in Shanghai which had disrupted the supply chain, and manufacturing activities and raised concerns over the future growth of the country. China wants to avoid Shanghai-like lock-downs in Beijing as it houses 22 million people.

29 April 2022

Diesel Prices Firm in Bangalore

The diesel prices are firm in Bangalore despite a slip in the global crude rates as it heads for a weekly loss. The diesel rates in Bangalore traded at Rs 94.79 per litre.

In the global scenario, Brent was seen at $107.10 per barrel, down by 1.10%, and West Texas Intermediate (WTI) at $102.6 per barrel, down by 1.17%.

The diesel prices in Bangalore will be revised daily in line with the crude rates in the international markets and the rupee-dollar exchange rate. A hike in the fuel prices in the global markets will directly impact the diesel prices in several cities in India.

India mainly depends on foreign oil exports to fulfill its domestic requirements. The rising number of pandemic cases across the globe, weak fuel demand, and ongoing tensions between Russia and Ukraine have led to volatility in the crude markets over the last few weeks.

The crude benchmark – Brent had hit $139 per barrel last month. But currently, both the oil benchmarks for this week are set to fall by over 4%.

The disruption of crude output production in Libya owing to political tensions and a halt in oil production has also led to supply tightness.

Libya is currently losing 550,000 barrels per day (bpd) of fuel and the global supply of oil could further be squeezed if the European Union imposes a ban on Russia's exports.

The hawkish remark from the U.S. Federal Reserve Chairman – Jerome Powell pointing to a hike in interest rates has bolstered the U.S. currency and has made crude more expensive for purchasers of other countries' currencies.

22 April 2022

Diesel price in Bangalore falls by 9 paise

Diesel price in Bangalore was revised to Rs 70.30 per litre on Saturday, down by 9 paise from Rs 70.39.

Fuel prices in India are affected by the change in International crude oil benchmarks. Global benchmark Brent was down 1 percent to $76.75 per barrel while WTI fell by 1.8 percent to $65.81. The fall has been from the rise in US oil production which is edging closer to that of Russia. Amid the fall, there have been concerns over the widening gap (premium) between WTI futures and Brent that surpassed $11 on Thursday, marking a new 3-year high.

It has been the fourth day of correction in diesel rates in Bangalore. Fuel rates have been down by 21 paise in 4 days. The fall comes after 16 straight days of relentless rise. Diesel rates also impact your daily expenses like grocery shopping as most vehicles used for its transportation run on the same fuel. More relief can only be expected from a cut in central and Karnataka taxes.

2 June 2018

Diesel price falls by 5 paise in Bangalore

Petrol price in Bangalore dropped by 5 paise to Rs 70.44 per litre after the daily revision on IOC's (Indian Oil Corporation) website from a fall in international crude oil prices.

Oil prices abroad weighed down after a sudden rise in US crude inventories and on continued expectations on OPEC (organization of the petroleum exporting countries) increasing their output in their June meeting.

Benchmark Brent slipped by 20 cents to $77.30 per barrel while WTI was also down by 20 cents to $68.01 per barrel. The US increased its inventories by 1 million barrels in the last week as per data published by the American Petroleum Institute.

In India, the Kerala state government announced a deduction of Re 1 in the price per litre of petrol and diesel in the state by making a cut on VAT collected on fuel to reduce the burden of consumers. While the central government did not make any attempts to control fuel rates that hit an all-time high last week, Kerala was the first state to take an initiative.

31 May 2018

Diesel price in Bangalore lowered marginally by one paise

Diesel price in Bangalore was lowered by one paise from Rs 70.50 to Rs 70.49 per litre. The decline in international crude oil prices has finally started showing in the fuel rates in India, although quite marginally.

Brent crude was trading at around $75 per barrel on Wednesday, almost $5 lower than its three and a half year high of $80.50 per barrel on May 17. The steep fall was an effect of the news that OPEC and its allies would increase production.

The decision is not finalized and even if it were to, it would take a while before the current deficiencies in supply for crude oil are eased. The international fuel rates are therefore going to hover around $75 per barrel mark for a while.

Italy's political turmoil that has caused the euro to hit a 10-month low, has, in turn, benefited the US dollar, making oil expensive for other currencies.

How diesel prices in Bangalore play out in the coming days is hard to predict under such prevailing uncertainties.

30 May 2018

Diesel price in Bangalore hiked again

Diesel price in Bangalore was up by 14 paise to Rs 70.50 per litre in daily revision. Fuel prices in India are affected by international crude rates, strength of the rupee and tax rates.

Taxes rates have been consistently high since 2014, on account of social welfare expenses incurred by the central government.

International crude oil rates were mixed today with Brent futures experiencing a marginal hike of 0.28 percent to $75.51 a barrel while WTI fell by 1.64 percent to $66.77 a barrel.

Meanwhile, the rupee weakened against the US dollar in early trade, which is when the daily revision of petrol and diesel prices happens in India. The American currency gained from the reviving hopes of US-North Korea historic summit that is scheduled to take place in Singapore in June.

The easing tensions between the countries have made the dollar attractive to investors, pushing its value further.

If the rupee falls further, petrol prices in Bangalore may be hiked again.

 

29 May 2018

Diesel price in Bangalore rises again

Diesel in Bangalore was revised to Rs 70.36 per litre as per state-owned IOC's website. This is the fifteenth day of hike in the rates. It has increased by Rs 1.38 per litre in a week.

Prices were frozen for 3 weeks prior to May 14, what appeared to be a pre-election strategy in the Karnataka state.

The losses from the halt are estimated to be Rs 500 crore for oil marketers as during the period the international crude oil benchmarks Brent and WTI were rallying.
On Monday, however, Brent was trading 6.4 percent lower than its month high while WTI was 9.1 percent lower than its peak. They were at $75.09 per barrel and $66.22 per barrel. International rates have been falling since late Friday when Russia and Saudi Arabia said they would increase their output to help stabilize prices in the market.

The hike despite easing prices says that the oil marketers are still recovering from their losses and it would take a while before the diesel rates are stabilized in Bangalore.

28 May 2018

Diesel price in Bangalore rises despite drop in international rates

Diesel price in Bangalore increased by 16 paise to Rs 68.98 per litre after the daily revision by state-owned oil marketers like IOC.

The price rise was despite the drop in crude oil prices internationally. Russian energy minister said that his country and a group of oil-rich countries will increase their production in the coming days. Following the news, WTI crude fell by 4 percent to $67.88 per barrel from its week's peak of $72.83, while benchmark Brent was down by 3.1 percent or $2.42 to $76.37. It had hit its 3 and half year high of $80.50 last week.

A rise in fuel prices automatically pushes inflation and increase the cost of living in the Silicon Valley of India as consumer goods are transported in diesel running vehicles. The rise in rates is, however, lower than the average hike of 23 paise per litre of diesel this week in the city. The price can be expected to ease in the coming days.

26 May 2018

Diesel price in Bangalore nearing Rs 70 mark

Diesel price in Bangalore was hiked by 22 paise per litre to Rs 69.93 on Friday. The fuel used in long-distance vehicles has been up by Rs 2.88 in the last 12 days.

Meanwhile, crude oil prices internationally have eased after Russia indicated that it will gradually increase its production. Reduced supply from oil rich countries and strong demand had pushed the fuel prices higher globally in the past few weeks. Geopolitical tensions between Iran and the US also triggered it.

Diesel rates in Bangalore are in line with most other cities in India. It includes Karnataka state VAT (value added tax) and sales tax apart from excise duty imposed by the central government. As a city highly dependent on road transport, the rise will impact costs incurred by transport companies which will ultimately be passed on to final consumers.

The Indian government is, however, looking for ways to reduce the burden on citizens. Temporary relief can come if taxes, which make up for a large portion of the final price is slashed to some extent.

25 May 2018