Crude Oil Slips Below $60: Hopes Rise for Petrol-Diesel Price Cut in India

New Delhi, May 5, 2025 — In a significant development that could bring relief to Indian consumers, international crude oil prices have dipped below $60 per barrel. The steep decline in crude oil rates has sparked fresh expectations of a reduction in petrol and diesel prices across the country.

Petrol and Diesel Prices Global Crude Prices Tumble Amid OPEC+ Supply Increase

Brent crude, the global benchmark, has dropped 3.79% to $58.79 per barrel, while West Texas Intermediate (WTI) crude fell by nearly 4%, reflecting increased supply from OPEC+ countries. The surge in output by oil-producing nations is exerting downward pressure on global prices.

The price drop comes despite rising domestic fuel demand with the onset of summer, a season typically associated with increased vehicular travel and agricultural activity.

Domestic Fuel Prices Remain Unchanged

Despite the significant dip in international crude prices, Indian Oil Marketing Companies (OMCs) have not revised retail petrol and diesel rates as of May 5, 2025. Fuel prices remain unchanged in major cities, with Delhi recording petrol at ₹94.77/litre and diesel at ₹87.67/litre.

According to Indian Oil Corporation, the lowest petrol and diesel rates in India are still in Port Blair at ₹82.46 and ₹78.05 per litre, respectively. Below is a snapshot of the cities offering the lowest retail fuel prices:

Cheapest Petrol (₹/litre):

• Port Blair: ₹82.46

• Itanagar: ₹90.87

• Silvassa: ₹92.37

• Daman: ₹92.55

• Haridwar: ₹92.78

Cheapest Diesel (₹/litre):

• Port Blair: ₹78.05

• Itanagar: ₹80.38

• Jammu: ₹81.32

• Samba: ₹81.58

• Kathua: ₹81.97

Rising Summer Demand Fuels Consumption Surge

According to industry data, diesel consumption in India rose by 4% in April, reaching 8.23 million tonnes compared to the same period last year. This marks a sharp reversal from previous months of stagnant growth. On the other hand, petrol consumption rose by 4.6% year-on-year to 3.435 million tonnes, driven partly by ongoing election campaigns and seasonal travel.

Will Retail Fuel Prices Come Down?

Market analysts believe that if the crude price correction sustains, it could give OMCs the room to reduce retail prices, especially since domestic fuel rates have remained unchanged for several months despite volatility in the global market.

However, policy-level decisions and taxation structure—such as excise duty and VAT—will also influence any potential price revision. So far, no official announcement has been made regarding a fuel price cut.