Crude oil falls on US-Iran talks; petrol, diesel prices unchanged in India on October 1
Brent and WTI slipped on Thursday as markets weighed US-Iran peace talks, while state oil marketing companies kept domestic fuel prices steady.
Crude oil prices fell in the international market on Thursday. The market is weighing diplomatic efforts between Washington and Tehran over US-Iran peace talks. Volatility also persists because of Trump's refusal.
On Wednesday, September 30, Brent crude and West Texas Intermediate (WTI) crude both closed about $1 a barrel higher. Today, October 1, Brent October futures are trading at about $97.36 a barrel, down roughly 0.7 per cent. WTI has dropped about 1 per cent and is trading at $89.57 a barrel.
For September as a whole, Brent ended the month with a monthly gain of 14 per cent. This is its biggest one-month jump since July. WTI rose about 5 per cent over the same period.
Crude prices in the international market have swung up and down for months, but state-run oil marketing companies have not changed domestic fuel prices. Petrol and diesel rates stayed the same in the country's major cities on Thursday, October 1, too. The companies are absorbing the burden of the shocks in the global oil market.
Petrol prices on October 1: Rs 102.12 per litre in Delhi, Rs 113.51 in Kolkata, Rs 111.21 in Mumbai, Rs 107.77 in Chennai, Rs 115.69 in Hyderabad and Rs 110.89 per litre in Bengaluru.
Diesel prices on October 1: Rs 95.20 per litre in Delhi, Rs 99.82 in Kolkata, Rs 97.83 in Mumbai, Rs 99.55 in Chennai, Rs 103.82 in Hyderabad and Rs 98.80 per litre in Bengaluru.
What determines petrol and diesel prices? Besides the price of crude in the global market, state-run oil marketing companies must consider the rupee-dollar exchange rate, refining costs, taxes and the dealer's margin. This is why domestic fuel prices do not change daily with the day-to-day movement of crude in the international market.
