This stability follows a significant ₹10 per litre excise duty cut on petrol and diesel announced on March 27, which OMCs are currently using to offset their higher procurement costs.

Fuel Prices Today (March 31, 2026)

Metro City Comparison (per Litre)

Key Market Insights

• Excise Duty Status: Effective March 27, 2026, the central excise duty stands at ₹3 per litre on petrol and is nil on diesel.
• Private vs. State Pumps: While state-run pumps (IOCL, BPCL, HPCL) are holding rates, private retailers like Nayara Energy have reportedly increased their prices by roughly ₹5 for petrol and ₹3 for diesel.
• LPG Subsidy: Despite the ₹60 hike in domestic LPG earlier this month, Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries continue to receive a ₹300 subsidy per cylinder.
• Global Volatility: The Indian basket of crude oil reached $115.75 per barrel as of late March, making India highly vulnerable to further supply disruptions.

Global Oil Market Today

The global oil market is experiencing its most severe supply shock in history. Prices have surged over 50% in March-the steepest monthly rally on record-driven by the ongoing U.S.-Iran war and the effective closure of the Strait of Hormuz.

Critical Market Drivers

• Hormuz Shipping Crisis: Traffic through the Strait, which handles 20% of global oil, has dropped to nearly zero. Iran has implemented "selective transit," allowing only approved vessels (e.g., from China, Russia, and India) to pass via a newly established northern channel.
• Emergency Reserve Release: The IEA has launched its largest-ever collective action, releasing 400 million barrels from emergency stocks to provide a "significant buffer."
• OPEC+ Strategy: After a three-month pause, eight core OPEC+ members (including Saudi Arabia and Russia) have agreed to a modest production increase of 206,000 barrels per day starting in April to help stabilize the market.
• Infrastructure Risks: Beyond the Strait, Russian Baltic exports via Ust-Luga have faced repeated UAV attacks, while Yemen's Houthi militants continue to threaten Red Sea and Saudi energy corridors.

Economic Impact

• Freight & Insurance: War-risk insurance premiums for the region have increased up to six times, adding hundreds of thousands of dollars to single transit costs.
• Refining Shortage: Over 3 mb/d of refining capacity in the Gulf has shut down due to attacks or lack of export routes, causing a severe tightening in global jet fuel and diesel markets.

6-Month Fuel Price Trend (Delhi)

Key Trend Drivers

• The "Price Freeze" Period: For nearly five months (Oct-Feb), retail prices for regular petrol and diesel saw zero net change. State-run OMCs held rates steady to control inflation, even as global crude climbed.
• Emergency Excise Cut (March 27, 2026): As global oil prices approached $149 per barrel due to the Middle East conflict, the Central Government slashed excise duty by ₹10 per litre.
• Absorption Strategy: Notably, retail prices did not drop by the full ₹10. OMCs used this tax relief to "repair their balance sheets"-offsetting the massive losses they took while buying expensive international crude and selling it at frozen domestic rates.
• Premium Fuel Divergence: While regular fuel stayed flat, Premium Petrol (XP95/Speed) saw a hike of roughly ₹2 per litre in late March to reflect the higher cost of additives and global benchmarks.
• LPG Spike: Unlike auto fuels, Domestic LPG remained steady at ₹853 until March 7, 2026, when it surged by ₹60 to reach the current ₹913 per cylinder in Delhi.

Comparison: Domestic vs. Global Trend

While global Brent crude rose by over 55% during this six-month window, Indian retail petrol prices effectively rose by less than 0.1% due to heavy government subsidies and tax adjustments.

What This Means for Consumers

• State-Run Pumps: Regular petrol and diesel remain stable at ₹94.77/L and ₹87.67/L respectively, thanks to the excise duty cut and OMC absorption.
• Private Pumps: Nayara and other private outlets may charge ₹5 more for petrol and ₹3 more for diesel.
• Premium Fuels: Expect to pay ₹2 more per litre for high-octane variants.
• LPG: Domestic cylinder prices remain at post-hike levels; Ujjwala beneficiaries receive a ₹300 subsidy.

Disclaimer: Fuel prices are subject to daily revisions by oil marketing companies. Rates are indicative and may vary by outlet. Please check with local fuel stations for exact pricing.