The latest developments followed positive discussions in Qatar involving American negotiators Jared Kushner and Steve Witkoff. According to Bloomberg, a senior official from the Trump administration stated that technical negotiations with Iran were progressing positively, strengthening expectations of a lasting resolution to the conflict.
Since February 28, the West Asia conflict had triggered a global energy crisis, pushing international crude oil prices sharply higher. Rising tensions in the Strait of Hormuz, one of the world's most critical oil shipping routes, disrupted global energy supplies, including shipments to India. As a result, India witnessed substantial increases in the prices of commercial liquefied petroleum gas, petrol, diesel and aviation turbine fuel during the peak of the crisis.
With geopolitical tensions now easing, oil marketing companies have announced substantial price reductions.
Commercial liquefied petroleum gas prices, primarily used by hotels, restaurants and commercial establishments, have been reduced by ₹183.50 per 19-kilogram cylinder. Following the first reduction in commercial liquefied petroleum gas prices this year, the retail price of a 19-kilogram cylinder now stands at ₹2,930. According to oil companies, commercial liquefied petroleum gas prices had reached a record high of ₹3,113 per cylinder last month.
Commercial liquefied petroleum gas prices are revised on the first day of every month based on the average benchmark prices recorded during the previous month.
Following the latest revision, the price of a 19-kilogram commercial liquefied petroleum gas cylinder stands at ₹2,930 in New Delhi, ₹3,106 in Chennai, ₹3,191 in Hyderabad, ₹3,081.50 in Kolkata, ₹2,885.50 in Mumbai and ₹3,021 in Bengaluru.
Private fuel retailer Nayara Energy also announced a reduction in retail fuel prices across its nationwide network. Petrol prices have been cut by ₹5 per litre, while diesel prices have been reduced by ₹3 per litre at more than 7,000 Nayara Energy fuel stations across the country. The revised rates came into effect on Wednesday, although retail prices may continue to vary between states due to differences in value-added tax and other local duties.
Fuel prices offered by public sector oil marketing companies remain unchanged.
Notably, Nayara Energy had been the first fuel retailer to increase petrol and diesel prices during the peak of the United States-Iran conflict in March.
Following the latest revisions, petrol and diesel prices in New Delhi remain ₹102.12 and ₹95.20 per litre respectively. In Chennai, petrol is priced at ₹107.76 per litre while diesel costs ₹99.55 per litre. Hyderabad records petrol at ₹115.69 and diesel at ₹103.82 per litre. In Kolkata, petrol is available at ₹113.51 and diesel at ₹99.82 per litre. Mumbai records petrol at ₹111.21 and diesel at ₹97.83 per litre, while Bengaluru reports petrol at ₹111.68 and diesel at ₹99.56 per litre.
The aviation sector has also received significant relief after aviation turbine fuel prices were reduced by ₹5 per litre. Aviation turbine fuel now costs ₹110 per litre in New Delhi, marking the first reduction since the West Asia conflict triggered a sharp increase in jet fuel prices.
The aviation turbine fuel price had surged on April 1, when Indian Oil Corporation displayed a rate of ₹2,07,341.22 per kilolitre in Delhi, representing an increase of 114.55 percent from the earlier rate of ₹96,638.14 per kilolitre. The steep increase prompted government intervention, leading oil marketing companies to moderate the hike for scheduled domestic airlines. Following the intervention, the final aviation turbine fuel price for domestic carriers in Delhi was revised to ₹1,04,927 per kilolitre.
Meanwhile, developments in the Strait of Hormuz continue to indicate improving stability. Following the signing of a 14-point memorandum of understanding between the United States and Iran and the recent diplomatic discussions held in Qatar, oil tanker movements through the strategic waterway have begun to recover.
Global crude oil prices have also declined in recent days as optimism grows over a permanent resolution to the conflict. On Wednesday, Brent crude traded above 73 dollars per barrel, while West Texas Intermediate remained close to 70 dollars per barrel.
Samantha Dart, Co-Head of Global Commodities Research at Goldman Sachs Group Inc., said the United States-Iran conflict was expected to conclude by the end of July. She stated that once shipping through the Strait of Hormuz returns to normal, the global oil market is expected to enter a phase of oversupply.
Iran has also announced that it exported more than 40 million barrels of crude oil after the United States lifted its naval blockade on Iranian ports, while Russian oil shipments have reportedly climbed to record levels.
The broad decline in fuel prices reflects the direct impact of improving geopolitical stability on global energy markets. With commercial fuel, private retail fuel and aviation turbine fuel becoming cheaper, the easing of tensions between the United States and Iran is expected to provide significant relief to transportation, hospitality, aviation and other fuel-dependent sectors while improving overall market confidence.
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