In today’s time, the prices of petrol and diesel are a matter of concern for everyone. In a country like India, where most oil comes from outside, there is a direct impact of the changes in the prices of crude oil on the general public’s pocket.
Recently, a big news has come that crude oil in the international market has gone below $ 70 per barrel. This has raised hopes among people that now the prices of petrol and diesel can be reduced. But will it really happen? And if yes, how long will it be seen?
In this article, we will know how crude oil prices are fixed, what is the effect on the prices of petrol and diesel in India, what rates are going on in the country, and what can be expected further. Also, we will tell you how the government and companies control these prices, and how long the common man can get relief.
Crude oil price below $ 70: What does it mean for petrol and diesel in India?
Crude oil prices are steadily decreasing in the international market. In April 2025, Brent Crude has also come down to $ 65 per barrel, and India’s average import price has reached $ 69.39 per barrel. This is the first time since August 2021 when crude oil has become so cheaper. Experts believe that if this trend continues, petrol and diesel prices may be cut soon.
Overview table of petrol and diesel prices
| Points | Details |
| Crude oil | 69.39 per barrel (April 2025) |
| Brent crude | $ 64.98 per barrel (15 April 2025) |
| Wti crude | $ 61.64 per barrel |
| Oil imports in India | 87% crude oil comes from outside |
| Petrol Rate (Delhi) | ₹ 94.77 per liter |
| Diesel Rate (Delhi) | ₹ 87.67 per liter |
| Previous deduction | ₹ 2 per liter in March 2024 |
| Tax part | 54%in petrol, 49%in diesel |
| Expected next cut | Global price remains stable soon |
How are the prices of crude oil fixed?
Crude oil prices depend on the decisions of demand and supply, geopolitical tension, trade war, and OPEC (OPEC) countries in the international market. When the fear of recession increases in the world or a trade war -like situation, the demand for oil decreases and prices come down.
India buys about 87% of its needs from outside. Therefore, if prices fall in the international market, India can also get cheaper oil. But when and how it will fall on the prices of petrol and diesel, it also depends on many more factors.
How are the prices of petrol and diesel fixed in India?
Petrol and diesel prices in India are updated daily at 6 am. Their prices depend on many things:
- International price of crude oil
- Dollar-Rupaya Exchange Rate
- Refining cost
- Transportation and dealer commission
- Central and State Government Tax (Excise Duty, VAT)
Breakup of petrol and diesel prices
| Component | Petrol (%) | Diesel (%) |
| Base price | 42 | 49 |
| Tax (center+state) | 54 | 49 |
| Dealer commission | 4 | 2 |
What is the rate of petrol and diesel in India right now? (Current Petrol-Diesel Price in India)
Currently, petrol and diesel rates are different in different cities of the country. The reason for this is the tax and transportation cost of the state governments. Below are the latest rates of some big cities:
| City | Petrol (₹/liter) | Diesel (₹/liter) |
| Delhi | 94.77 | 87.67 |
| Mumbai | 103.5 | 90.03 |
| Chennai | 100.8 | 92.39 |
| Kolkata | 105.01 | 91.82 |
| Bengaluru | 102.92 | 90.99 |
| Lucknow | 94.69 | 87.81 |
| Jaipur | 104.72 | 90.21 |
When will the prices of petrol and diesel be cheap? (When will Petrol-DIESEL Get Cheoper?)
Now the biggest question-When will the prices of petrol and diesel decrease after crude oil becomes cheaper? Experts say that if crude oil prices in the international market remain below $ 70 for a few weeks, then India may soon be cut.
In March 2024, when crude oil was $ 84.49 per barrel, petrol and diesel prices were cut by ₹ 2 per liter. Now crude oil is $ 69.39 per barrel, ie a drop of about 17.87%. If this trend continues, the government and oil companies may reduce the price to give relief to the general public.
What reasons do not get immediate relief?
- Government takes time to reduce tax
- Oil companies first cover losses
- The fluctuations in the international market continue continuously
- Prices are also kept stable due to electoral or economic reasons
Main factors affecting petrol and diesel prices
- Global Crude Oil Price: Crude oil prices are the biggest factor in the international market.
- Currency Exchange Rate: The rupee also changes the price due to weakening or strong against the dollar.
- Government Taxes: Central and state governments may increase or reduce tax.
- Demand and Supply: The balance of oil demand and supply in the country also affects.
- Geopolitical Tension: Russia-Ukraine War, OPEC countries’ decisions, trade war also affect prices.
Can petrol and diesel prices fall further?
A large financial agency like Goldman Sachs estimates that by 2025 the average price of Brent crude may remain at $ 63 per barrel. OPEC has also reduced the estimate of increasing oil demand. If the fear of global recession persists, crude oil prices may fall further, which may further fall in the prices of petrol and diesel in India.
Who benefits from the fall in petrol and diesel prices?
- General Public: Transport will be cheaper, inflation will be reduced.
- Industry: Transportation cost will decrease, production will be cheaper.
- Government: There will be growth in economy, but tax collection may decrease.
- Agricultural sector: Due to cheap diesel, there will be relief in farming.
Loss of fall in petrol and diesel prices
- The government may suffer losses in tax collection.
- Oil companies may suffer losses if the price decreases very fast.
- If the prices are very low, OPEC countries can reduce production, which can increase the price again.
Government’s strategy on petrol and diesel prices
The government usually tries to keep the prices stable so that inflation is under control. Many times the government controls prices by reducing or increasing taxes. The government can cut prices at the time of election or when inflation increases.
Signs of fall in petrol and diesel prices
- Crude oil has come below $ 70.
- Brent crude is less than $ 65.
- India has been cut by ₹ 2 per liter in March 2024.
- Experts believe that there may be further cuts soon.
What to do to fall in petrol and diesel prices?
- Check the rate of petrol and diesel daily.
- If the price is expected to decrease, avoid a large amount of fuel filling.
- Keep an eye on the latest updates of the government and oil companies.
Some important questions related to petrol and diesel prices (FAQ)
Q1. Does petrol and diesel become cheaper immediately due to cheap crude oil?
No, it may take a few weeks or months because the government and companies first cover losses.
Q2. Why are the prices of petrol and diesel different in every state?
Tax and transportation costs are different in each state, so prices are also different.
Q3. Can the government reduce the price by reducing tax?
Yes, the central and state governments can reduce the price by reducing tax.
Q4. Can petrol-diesel be more cheaper in the coming times?
If crude oil in the international market is cheaper, yes, prices may fall further.
conclusion
Crude oil is a positive sign for India to fall below $ 70. If this trend persists for a few weeks, then the prices of petrol and diesel can be seen soon. However, a lot depends on the policy, tax structure and international market status of the government and oil companies. The general public may have to wait a little, but it is expected that there will be relief in the coming time.
Disclaimer:
This article is only for information. Petrol and diesel prices depend on the policy, tax and international market status of the government and oil companies. The information given here is based on the opinion of the latest updates and experts. Be sure to check the rate from official source or local dealer before any financial decision. This is not a government announcement or scheme, but an analysis of the latest market trend.
