Diesel Price in Maharashtra (25th April 2024)

Today’s diesel price in Mumbai is up in comparison with the global crude oil prices. The demand of its requirement is increasing as it is coming as a hint that even after the announcement of OPEC about the good health in oil demand, Saudi Arabia is extending the production of oil for supply by this year's end. This is leading to an increase in both the need of diesel and price of the fuel. Today's price of diesel in Mumbai is now Rs. 94.27.

Diesel demand in the nation

Diesel is a fuel which is in demand for its benefit as an efficient fuel. It is not wrong to say that for many years diesel has contributed to the growth of the Indian economy and its development in automobile industries as well as to the development of Indian refineries on a global level. The use of this fuel has ceased to fall only a few times after its discovery, as the most recent one can be the pandemic of 2019 that is during the COVID period all over the world but now the time has changed where the diesel was cheap and affordable, now the price of diesel is in par with any other fuel due to which farmers in many parts of the country has switched to fuel like LPG and others for pump operation in farms and agricultural fields.

The diesel prices inched up marginally in Pune following cues from the global markets. The diesel prices in Pune were seen at Rs 102.77 per litre, up by 15 paise from the previous day's rates.

In the overseas markets, Brent was seen at $105.1 per barrel, up by 0.47%, and West Texas Intermediate (WTI) at $100.9 per barrel, up by 0.34%.

In an unexpected move, the Organization of the Petroleum Exporting Countries (OPEC) has trimmed down the global demand for crude in 2022 and cited the impact of Moscow's invasion of Ukraine, rallying crude prices, and resurgence of Omicron variant related cases in China.

In its monthly report, the OPEC states that the crude demand globally will rise by 3.67 million barrels per day (bpd) in fiscal 2022, a drop from its earlier forecast of 480,000 bpd.

The crude prices in the international markets are vulnerable following the rising tensions between Russia and Ukraine. On the other hand, the European Union is yet to embargo Russia's oil, but few foreign ministers noted that the option is on the table.

The OPEC has trimmed down Russia's liquids production outlook by 530,000 bpd for fiscal 2022. Apart from this, it has also cut the growth in the global fuel demand, citing the impact of Russia's invasion of Ukraine, climbing crude prices, and a surge in pandemic cases in China.

13 April 2022

The prices of diesel have been cut in Mumbai by 9 paise per litre bringing down the total price to Rs 72.56. The move comes in amidst the drop in the crude oil prices in the global market.

The domestic oil marketing major, Indian Oil Corporation announced about the price cuts in its official website. The price change comes into effect starting from 6 am in the morning.

The rates of crude oil fell in the global market as the OPEC member countries have increased the oil output production as discussed during the last month’s OPEC meet. The increase in the supply of oil has kept the rates of fuel under check and has thus led to the decline in the crude oil rates in the global market.

India depends on oil imports to a great extent from oil-producing countries. Around 80% of oil imports are required to fulfill the domestic requirements, which has led to the increase in the import bill of the country.

Prices of diesel in Mumbai rallied after for the 12th straight day, rising to Rs 73.20, up by 26 paise. The oil marketing companies had frozen the prices, ahead of the Karnataka state elections, but raised the fuel prices following the successful completion.

It is likely that we will see diesel prices flatten after somedays, as crude prices have been dipping. Brent Crude has fallen marginally today to $78, after hitting $80 per barrel.

If prices keep dipping, we will see a reduced price for the commodity in cities like Mumbai.

In fact, the government is weighing options to ask exploration major, ONGC to bear the costs of windfall gains in the price of petroleum products.

It may also look at including diesel and bring it under the ambit of the GST. This means the rates would reduce dramatically, bringing respite for consumers.

Fuel prices in the city of Mumbai began hurting investors, with petrol and diesel both gaining hugely in the last 10 days.  Diesel prices at the retail outlets in Indian Oil Company, BPCL and HPCL were at Rs 72.76 in the major Indian cities.

It is likely that we will see a further rally in prices, if Brent Crude goes beyond the $85 per barrel mark. In fact, the real worry for diesel rates in the city of Mumbai continues to also be the falling rupee. India meets 70 per cent of its crude requirements from imports and a drop in the rupee also tends to impact the price of the fuel.

 Diesel prices in Mumbai have now rallied for 10 straight days gaining as much as Rs 2 in the last 10 days itself. There may now be little respite for consumers, unless the government cuts excise.

Diesel prices in Mumbai smashed earlier records, as globally all forms of crude oil rallied. This is the first time, we are seeing diesel rates in Mumbai retailing at such high rates.

The rate for one litre diesel at IOC, HPCL and BPCL stood at Rs 72.22 in the city of Mumbai. In fact, Brent Crude has now crossed levels of $80, which has posed further risk of the fuel price increasing in various Indian cities. The government would have to evolve a mechanism to reduce prices as this may lead to a rise in inflation.

The one option is to cut excise rates on diesel. However, it happened last year as well the government cut the excise duty, which resulted in a loss of revenue of Rs 25,000 crores.

The falling rupee is also looking worrisome for the fuel. The rupee has hit 68, which is making imported crude expensive and hence diesel prices across the country.