India CNG Prices Rise as Oil Risk Premium Holds Above $105
CNG prices jumped ₹2 in Chennai and Meerut on Friday as the Middle East risk premium kept Brent crude above $105 despite IEA supply moves.
State-run oil companies kept petrol and diesel prices unchanged after their daily revision at 6:00 AM on Friday, October 16. In Mumbai, petrol stood at ₹111.21 per litre, unchanged from the previous day. Across major metros, fuel rates have held their ground since June, even as the crude oil profile shows Brent holding above $105.
CNG prices increased in eight locations. Chennai and Meerut saw the largest CNG increases, at ₹2 each. New Delhi, Rewari and NCR recorded no change.
Brent crude futures fell 41 cents, or 0.39%, to $105.51 a barrel by 0012 GMT. US West Texas Intermediate crude futures dropped 54 cents, or 0.55%, to $97.43 a barrel, Reuters reported. The morning dip followed a mixed Thursday session, with WTI settling more than 3% higher on a large drawdown in US crude inventories, while Brent remained largely flat.
The International Energy Agency agreed on Thursday to release over 20 million barrels of diesel into the market. The agency also authorised the release of any remaining oil from a record emergency reserve pledge made in March. Separately, a US official told Reuters the Trump administration is considering lifting sanctions on select "shadow fleet" vessels that have carried petroleum from sanctioned nations including Russia, Iran, and Venezuela. The policy review comes days after Trump temporarily lifted sanctions on Russian diesel. That decision drew immediate backlash from Ukrainian President Volodymyr Zelenskiy, European allies, and several Republican senators.
Instead of easing, Middle East security deteriorated. Iran announced it was stepping up strikes in retaliation for a US blockade of its ports and tougher sanctions introduced last month. The conflict between Saudi Arabia and Yemen's Houthi rebels continued to intensify. On Thursday, Houthi forces fired missiles at the presidential palace complex in Aden, killing two guards. The Saudi-led coalition detailed dozens of recent attacks targeting Saudi infrastructure.
For Indian consumers, the CNG increases represent the first pass-through of the global crude risk premium since domestic petrol and diesel rates were frozen in June. The IEA's remaining emergency reserve pledge remains authorized for release. No date has been set for the next domestic fuel price review.
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